“Existing payment systems are very limited”

The head of the blockchain division of Facebook, David Markus, in his blog spoke about the shortcomings of traditional payment systems and why you need to switch to systems based on the blockchain.

“When I traveled the world and met different people, I involuntarily began to think about the advantages of digital currencies created on the basis of the blockchain,” Marcus began his story. – I am often asked why we did not follow the traditional way of building a payment system, but chose a more ambitious solution. I wanted to find a good and short article that would reveal the advantages of the new technology, but could not do it. So I decided to write it myself. “

According to Marcus, existing payment systems are very limited. They were created back in the 1960s and 1970s. Undoubtedly, they were supplemented several times, but these updates simply fell on top of the old infrastructure. Therefore, the effectiveness and scope of existing solutions is limited. For example, a user can transfer money between wallets within the same structure, but cannot freely transfer them to a wallet created by a third-party company.

“The transfer from point A to point B requires the participation of a number of intermediaries and often liquidity pools, which should be available at point B so that the recipient of funds can freely receive the transfer,” he writes.

Systems based on blockchain technology can carry out transactions in almost real time without any barriers in the form of state borders. At the same time, commission costs will be minimal, and there is no need to attract liquidity pools or use different currencies.

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“Thanks to this, it is possible to significantly reduce the cost of intermediaries, eliminate operational difficulties, while increasing the innovativeness and accessibility of the system. People can transfer money without obstacles, ”says Marcus. – That’s why we decided to go on an ambitious path and why we are determined to complete the work we have begun. People all over the world deserve the best, and it’s time to change the current payment system. ”