Transfer Of Funds In Ethereum Cheaper. The Ethereum network with a meager transaction fee of $0.06 processed more than $183 million value of a transaction. The Ethereum network took over 19 hours to complete the transaction without having to go through expensive intermediaries. This very transaction is a testimony to blockchain applications processing at a much lower cost than traditional modes of fund transfer such as wire transfers with banks, PayPal, or Western Union etc.
A similar transaction on PayPal would have cost more than $5million as the transaction fee and even more through Western Union, another global remittance service provider, which would have cost a transaction cost over $7million.
Adoption Rate is Poor
Transfer Of Funds In Ethereum Cheaper. Despite the substantially lower cost of transacting through blockchain, there does not seem to be an influx of people rushing to adopt the technology, for some reason there is increasingly less inclination towards adopting Blockchain technology for transactions. The tokens are volatile in nature that are transferred using blockchains. The transaction amount may get reduced or increase depending on the market while it is on its way to the receiver. This makes decentralized assets a little untrustworthy for the people looking for a stable remittance.
Another major hindrance for adopting Blockchain technology for transaction processing is that the funds are transferred in tokens. Therefore, the receiver, upon receiving the funds in crypto assets, would need to exchange it for fiat currency. But due to the strict banking regulations in certain countries, it is difficult to exchange cryptocurrencies for fiat currency.
It is necessary for economists and lawmakers to develop and implement FinTech friendly policies. In order to encourage faster adoption of blockchain services and all the innovations in Blockchain technology,