Foundations of Blockchain

Pain points in the payment system

The complex payment system used by the banking system has a set of limitations when collaborating with different entities in the system. In the following list, you will be introduced to some of the limitations of the existing payment system:

• Not suitable for huge fund transfers due to the daily transaction limit.
• You'll often encounter high transaction fees.
• Inter-bank transactions are settled slowly. Although current payment systems provide fast transaction settlement for domestic banks, cross-border transactions are still painfully slow.
• You may find some payment systems only function during the working hours of the bank.
• Since all the payment systems are still centralized, they are susceptible to both ...