{"id":7860,"date":"2021-11-02T20:55:33","date_gmt":"2021-11-02T20:55:33","guid":{"rendered":"https:\/\/blog-stg.cheesecakelabs.com\/blog\/create-borderless-blockchain-payment-platform\/"},"modified":"2022-07-01T18:16:24","modified_gmt":"2022-07-01T18:16:24","slug":"create-blockchain-payment-systems","status":"publish","type":"post","link":"https:\/\/blog-stg.cheesecakelabs.com\/br\/create-blockchain-payment-systems\/","title":{"rendered":"How to create borderless, blockchain payment systems"},"content":{"rendered":"

Despite the turbulent history they\u2019ve had until 2021, it certainly seems like cryptocurrencies are here to stay. Likewise, a core piece of tech underpinning cryptocurrency, blockchain, is not only sticking around but working its way into a variety of sectors. <\/span>In this guide, we\u2019re going to cover one of the most practical blockchain applications: blockchain payment systems. <\/span><\/p>\n

But first, let\u2019s start with the fundamentals. <\/span><\/p>\n

<\/p>\n

What is blockchain?<\/b><\/h2>\n

Blockchain is, in essence, a ledger technology. It keeps a record of, well, whatever you want. And it holds that record using tech that is extremely secure, flexible, transparent, and straightforward.<\/span><\/p>\n

It can help to visualize a blockchain as a row of wooden blocks lined up in a row. Let\u2019s say that each time you want to add a new wooden block to this row, you also want to preserve the order that the blocks are already in. Each time you add a new block to the row, you take a marker and draw a unique image on the seam where the last block and the new block meet. When you separate the two blocks, half of the image remains on each block. <\/span><\/p>\n

If each block has part of an overlapping image connecting it to its adjacent blocks, then you won\u2019t be able to remove or replace any of these blocks. You\u2019ll instantly recognize that they\u2019ve been tampered with because the images won\u2019t make sense anymore. <\/span><\/p>\n

In essence, this is how blockchain works. It\u2019s also where the name comes from. You can use blockchain to keep track of different file versions, people walking into a building, medical records, and financial transactions. <\/span><\/p>\n

Not only can you not rearrange the data stored in a blockchain (making it immutably chronological), but you can also trust that it is immensely secure. Blockchains are very well encrypted and can be centralized for the private sector or decentralized for the public sector. <\/span><\/p>\n

What are blockchain payment systems?<\/b><\/h2>\n

That brings us to blockchain payment systems. Blockchain payment systems are just one of the applications of blockchain technology.<\/span> In this instance, a new block is added to the blockchain every time a transaction takes place. <\/b><\/p>\n

Since these blocks can\u2019t be rearranged, edited, or removed, you can have nearly total confidence that the record of transactions is accurate. This is one reason that cryptocurrencies like Bitcoin are trusted. While you don\u2019t have physical money to hold onto, the Bitcoin blockchain proves, immutably, that you have the money your account says you do. <\/span><\/p>\n

You can, of course, use blockchain payment systems to support a cryptocurrency. But you can also use them in other financial sectors. There\u2019s no reason why Venmo, Visa, PayPal, or even your local bank can\u2019t use blockchain to keep a record of transactions. In fact, doing so could be an improvement, reducing the chances of fraud and error. <\/span><\/p>\n

Examples of blockchain payment systems<\/b><\/h3>\n