Categories
digital payments Entrepreneur Financial intermediary fintech Hybrid payment gateway payment gateway startup Uncategorized

Top seven startup laws in India

Be compliant with these basic laws to kickstart your startup

KPMG research shows that startups in India have seen a steady rise by seven times in the last decade. This is attributed to a slew of favorable government laws and initiatives in India. As a result, India’s image has grown by leaps and bounds as a startup-friendly country.

Hence, if you are an aspiring startup or a new startup, make sure that you comply with certain startup laws and regulations for the smooth running of your startup in India. Interestingly, India has a number of laws for startups ranging from contract laws, incorporation laws, patent laws, taxation laws, etc.

Startup laws in India
Know the nitty-gritties of startup laws in India

In this blog, I will talk about the core startup laws in India in a simplified fashion.

1. Limited Liability Partnership Act, 2008

Limited Liability Partnership Act, 2008 governs the formation of Limited liability partnership firms in India. Startups registered as LLPs have the flexibility of entering into contracts, hold properties, etc irrespective of the subsequent change in the partners involved.

Provisions of the Limited Liability Partnership Act, 2008:

  • LLP Agreement: It is not mandatory to have an LLP agreement. This reduces the technicalities involved, thereby easing the working of a startup.
  • Penalty: Violation of this Act results in a penalty of a maximum of five lakhs and a minimum of five thousand rupees.
  • Audits and accounts: Audit of accounts of the LLP is mandatory if turnover exceeds 40 lakhs or contribution by partner exceeds by 25 lakhs.

2. Companies Act, 2013

Companies Act, 2017 is the fundamental law for the formation, functioning, regulation, and dissolution of a company. It clearly sets out the responsibilities for different stakeholders of a company like directors, major shareholders, minor shareholders, etc.

Important provisions of Companies Act, 2013 are:

  • One person company: The new provision allows any company to be solely led by one person ( as both the director and the shareholder).
  • Shareholders: Maximum shareholders in a company could go up to a maximum of 200.
  • Women director: The Act provides for the mandatory appointment of a minimum of one woman board director.
  • Corporate Social responsibility: Every company which either has a net worth of Rs 500 crore or a turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the preceding three financial years on corporate social responsibility activities. 

3. Competition Act, 2002

Competition Act, 2002 governs the competitive activities of different organizations in the Indian market scenario. It ensures fair play in the Indian market by keeping a check on anti-competitive activities by the different players.

Key provisions of the Competition Act, 2002 are:

  • Competition Commission Of India: It is the central regulator for monitoring and keeping a check on anti-competitive practices in India.
  • Penalty: CCI can enforce a penalty of up to 1 lakh on any company for anti-competitive practices. 
  • Appeal: Appeal against CCI’s decision can be made by the aggrieved party within sixty days of the judgment in the Supreme Court of India.

4. Insolvency and Bankruptcy Code, 2016

Insolvency and Bankruptcy Code, 2016 aims to create a unified system for dispute resolution in India. It speeds up the dispute resolution process with the help of independent institutions and functionaries. In the past, dispute resolution in India was plagued by issues like red-tapism, organizational inefficiency, etc. Insolvency and Bankruptcy Code, 2016 intends to correct this loophole.

The provisions of Insolvency and Bankruptcy Code, 2016 are:

  • Dispute resolution time: Dispute resolution varies for corporates as well as individuals. The time frame is 180 days, extendable by 90 days for companies. For startups, the time frame is 90 days extendable by 45 days.
  • Dispute resolution request: Dispute resolution request can be put forth both by creditors as well as debtors.
  • Insolvency and Bankruptcy Board of India: IBBI is the insolvency regulator overseeing dispute resolution throughout the country. The board consists of 10 members including representatives from the Ministry of Finance, Law, and RBI.
  • Adjudicatory process: National Company Law Tribunal adjudicates in case of company and LLP firms. Individual and partnership firm related adjudication handled by Debt Recovery Tribunals.

5. Goods and Services Tax Act, 2016

GST Act aims to bring in a single, common taxation regime in the country by combining both central and state government taxes. It comes with the benefits of avoiding double taxation, lowering the prices of commodities and bringing in a competitive market.

Provisions of Goods and Services tax are:

  • GST slabs: The GST system currently has four slabs — 5%, 12%, 18%, and 28%. This simplifies the multiple taxes under the VAT system.
  • Central GST and State GST: Central GST to be levied and collected by the central government and State GST to be levied and collected by the state government.
  • Integrated GST: Integrated GST to be levied and collected by the Central government in case of inter-state transactions.
  • GST Council: GST Council is the governing body for revision of GST on a periodic basis.
  • Beneficial clause for Startups: By availing the input tax credit, startups can offset the regressive effects of the VAT system.

6. Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015

This act deals with the resolution of commercial disputes. Accordingly, commercial courts and commercial divisions of the high court can adjudicate on commercial disputes with a value of at least 3 lakhs.

It’s salient features include:

  • Commercial courts: Commercial courts to be established at the district level and also in the territories with the high court’s primary jurisdiction.
  • Commercial appellate courts: Commercial appellate courts are set up in the areas where original jurisdiction of the high court is non-applicable.
  • Mandatory mediation: Compulsory mediation provided in cases where there is no need for urgent relief.

7. Arbitration and Conciliation Act, 2015

Arbitration and Conciliation Act, 2015 deals with the arbitration of commercial disputes in an institutional fashion. Further, the act aims to make the arbitration process more cost-effective and client-friendly.

The salient features of the Arbitration and Conciliation Act, 2015 are:

  • Arbitral institutions: Supreme Court and High Courts to create arbitral institutions for dispute resolution, that can be directly approached by the parties for dispute resolution.
  • Arbitral award time: Arbitral award to be given within twelve months period, which could be extended by another six months.
  • Arbitration Council of India: Lays down norms for grading arbitral institutions and ensuring an environment of alternate dispute resolution (ADR).

For more blogs, visit http://blog.sabpaisa.in.

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

Categories
Banking digital payments Financial intermediary fintech payment gateway startup Uncategorized

Frauds in online payments explained

Simple tips to avoid frauds

A study conducted by the Center for Strategy and International Studies (CSIS) & McAfee show that online fraud is equivalent to 0.8% of the world’s GDP. Most importantly, payment frauds form a major part of this figure.

Online payment frauds connote the illegal transaction by fraudulently acquiring the customer’s credentials. For example, it takes the form of credit/debit card fraud, data theft, friendly fraud, phishing, etc. Incidentally, the advance of technology has advanced the fraud involved as well. Also, fraudsters have devised complex techniques to come out with sophisticated frauds which are very difficult to detect.

Online payment frauds
Some time tested techniques to handle online frauds
Learn the simple tips for combating online payment frauds

In this blog, I will take you through some simple yet time-tested methods to tackle online payment frauds. As they say, prevention is always better than cure.

1. Data Theft frauds

This most common mode of online payment fraud involves stealing digital information of customers like banking account details, credit/debit card information, PIN, etc. For example, in 2017, 1 in 15 people had their identities stolen. Subsequently, the hacking of the credential holder’s account takes place with the stolen data. Further, data theft is also a result of employee negligence in handling an organization’s data. 

Data theft prevention techniques:

  • Regular malware check on the computer system.
  • Use of debit/credit card with pin-chip technology.
  • Frequent change of password every 1-2 months.
  • Regular installation of updated software on systems.
  • Ensuring a secure and protected wifi connection.
  • Do not respond to unauthorized and spam emails.

2. Phishing frauds

In Phishing, hackers camouflage as financial institutions and contact the target victims. In doing so, the various adopted modes are email, telephone, text, etc. For example, the potential target luring happens with fake offers, false email links, attachments and emails from unknown senders. Further, studies show that phishing accounts for 90% of all the data breaches.

Phishing frauds prevention techniques:

  • Use of email filters.
  • Change in browser settings. Do not autosave passwords for payment sites.
  • Timely fraud report to banks to ensure speedy action cum monitoring.
  • Keep a track of URL of links in an email. It is a potent outlet to fraudulent sites that steal user data.

3. Friendly fraud

Friendly fraud is one of the toughest fraud to detect. Herein, a customer makes an online payment and then disputes the purchase by contacting the credit card issuer. Going ahead, the fraudster is refunded while the fraud continues on different payment platforms. Studies show that friendly fraud increases at a rate of 41% every two years. It is on the rise due to the increasing presence of e-commerce companies. Moreover, it is very challenging to detect friendly fraud due to the favoring of customers by credit card companies.

Nevertheless, an estimate of friendly fraud is made by observing a larger than usual average transaction. Also, a high frequency of order coupled with a high amount of stolen orders suggests the presence of friendly fraud.

Friendly fraud prevention techniques:

  • Call recording to verify the veracity of the order.
  • Saving the product delivery information by confirming the signature verification.
  • Blacklisting of suspicious, fraudulent customers.
  • Building cordial relations with customers to maintain a positive brand image.
  • Interconnectivity with online payment peers to obtain updated information about fraudulent customers.

4. Triangulation fraud

This fraud primarily involves three parties involved in a transaction. Firstly, a customer places an order with an e-commerce site. Secondly, the e-commerce site is a fraudulent seller which takes the order and reorders on another website using stolen payment credentials. Lastly, the legitimate e-commerce website unsuspectingly processes the fraudulent order. For example, triangulation fraud is common in the trade of electronics appliances, pet supplies, tools, etc.

Triangulation fraud prevention techniques:

  • Keep a track of repeated product selling behavior of the retailer.
  • Connect with triangulation fraud victims to ascertain the fraud strategy
  • Be in touch with auctions/marketplaces that are known to host fraudulent sellers.

5. Refund fraud

Refund fraud occurs in a situation wherein a customer engages in the frequent return of ineligible items without any concrete reasons. For example, stolen or damaged goods are frequently returned. It often results in e-commerce sites hiking prices to recover the loss due to fraudulent returns.

Refund fraud prevention techniques:

  • Flagging customers resorting to frequent returns.
  • Stricter return policies like discouraging returns without a valid receipt.
  • Serial numbers on goods for verification.

On the whole, payment frauds are an inevitable part of transactions in a digital era. However, the tips and tricks mentioned above can be used to reduce it considerably, if not eliminate it. In addition, be well prepared for any unforeseen scenarios during online payments. Always, keep in touch with the concerned banking and regulatory authorities to safeguard your business and buyings.

For more blog posts, visit http://blog.sabpaisa.in

Categories
digital payments Hybrid payment gateway payment gateway startup

Six capital raising options for your startup

Tips to ensure regular capital for your business

She was young, she was bright, she was full of energy and she wanted to do something remarkable in life. But, her impediments came in the form of gender, age, and finance. Snubbed by banks and considered as a high-risk customer, she struggled with the capital while setting up her venture.

Nevertheless, her sheer grit, determination, and the venture capital model came to her rescue. She set up her first venture with a paltry sum of Rs.10,000 from a garage in Bangalore. Now, she is a successful entrepreneur by the name Kiran Mazumdar Shaw, the Chairman, the MD, and the founder of Biocon. The success of her startup venture has inspired generations.

Capital for startups
Six ways to raise startup capital

Are you facing the same problems as confronted by Kiran Mazumdar Shaw? If so, this blog is for you. These simple tips will enable you to find funding for your dream startup.

1. Bootstrapping method to raise capital

Bootstrapping refers to the use of a self-financing mechanism to raise capital for your venture. Individuals or institutions with an optimum amount of saving use this method. Herein, the role of external financers like angel investors, crowdsourcing, venture capitalists, etc is not present. For example, corporate giants like HP, SAP, and Dell is well known for humble beginnings through the bootstrapping method.

The major benefit of the self-financing method is the retention of the decision making power of the entrepreneur in his business. On the other hand, self-financing comes with financial insecurity in the face of cost overruns and unforeseen challenges.

2. Angel Investors

Angel investors are wealthy individuals providing funding for startups. Funding happens in exchange for ownership equity or convertible debt. Herein, funding is either on a one time or an ongoing basis. Generally, their own money is used for investing in the startup venture. For example, Meena Ganesh, CEO of Portea Medical, is an investor in four startups. In other words, friends, family, and crowd-sourcing options are the major sources of angel investments.

The major advantage of Angel investment is the inflow of a large amount of money for startups. The high inflow further brings in the option of experimenting and taking a risk. Nevertheless, there is a major associated risk of losing one’s decision making control of the company. Also, angel investments do not guarantee regular investments and cash flow. There are chances of fraudulent investment also.

3. Venture Capital

As compared to Angel Investors, Venture Capitalists do not invest their own money in a startup. Instead, the money pooled from different sources is invested in the venture. In return, Venture Capitalists get an equity stake in the venture. Moreover, unlike Angel Investors, Venture Capitalist investment happens at a matured stage of the company. Helion Venture Partners, Blume Ventures and Nexus Venture Partners are the famous Venture Capitalists in India.

In addition to the huge cash flow, the business expertise that comes with a Venture Capitalist is immense. The high profile contacts of Venture Capitalist is a long-lasting source of future business opportunities. Also, the support in the form of tackling legal and procedural challenges of a nascent company is worth noting.

On the other hand, Venture Capitalist funding comes with the downside risk of losing decision making control of your startup. This is detrimental to the success of any startup in the long run.

4. Loan

Bank loans are one of the safest ways of financing your business. Unlike Angel Investors and Venture Capitalists, banking loan doesn’t come with an equity stake or convertible debt. Further, bank loans come with affordable interest rate norms, usually in tune with government incentives. Also, the ensuing taxation benefits further boost startups.

However, bank loans come with procedural and approval challenges. The time consumed in paperwork runs into months in certain cases. Also, bank approval is difficult for startups in very nascent stages of businesses.

5. Government programs and Incentives

Governments across the world are putting in place incentive schemes for the growth of startups. For example, the Indian government’s Startup India scheme gives funding to startups from a consolidated pool of 10,000 crores. This brings in much-needed funding for startup growth. Further, the self-compliance clause gives room for greater trust in the long run. Also, freedom from Capital Gains Tax is a confidence builder for continuing future experimentation with creativity.

On the downside, there is an increased risk of micromanagement by government agencies. This is in the form of delay in approval and disposal of funds.

Hence, the handholding by government schemes is a vital factor for the creation of conducive startup culture.

6. Crowdfunding

Crowdfunding is the process of gathering funds from multiple sources like peers, individuals, venture capitals, angel investors, etc. The different types involve donations, online campaigns, debt, equity, etc. Elanco, Lego, and Unilever are some examples of companies with the crowdfunding platform.

On the positive side, crowdfunding brings in diverse funding options for a startup. Interestingly, there is a brand-building from scratch due to the wide clientele exposure. Also, there is scope for valuable suggestions and feedback which aids in the growth of the startup.

On the downside, crowdfunding brings in the risk of enhanced competition. It is seen that crowdfunding is increasingly becoming popular among businesses, both big and small. Finding the space for your startup is a time-consuming process. Also, the fees associated with various crowdfunding platform is exorbitant. This eats into the profits of startups.

Have you made up your mind on the mode of financing your startup? Depending on the domain, intent, and size of your startup, choose the apt funding option viable for your business. If you have a stable saving, dive into bootstrapping. If parting with decision making is not an issue, explore angel investments and venture capital. Further, if you find the government programs and the bank incentives interesting, go ahead with these options. Lastly, if you are looking for different ideas in addition to diverse funding options, crowdsourcing is your ideal destination.

Do not be deterred with the roadblocks. Just remember that successful entrepreneurs like Kiran Mazumdar Shaw and Bill Gates walked a similar path. The journey of a thousand miles begins with a single step.

Feel free to drop in your valuable comments in the comment section. Let’s learn and grow together.

For more blogs, visit http://blog.sabpaisa.in .

Categories
Blockchain & Crypto digital payments Financial intermediary fintech Hybrid payment gateway payment gateway

Digital payment trends of 2019

Digital payment modes to simplify our lives

Have you faced the challenge of making cash payments at the grocery store? Have you fumbled up due to the lack of cash? Not anymore, with the digital payment system in the offing. Significantly, the digital payment system is the buzzword in the contemporary payment market.

By definition, digital payment systems connote the electronic transfer of money, as opposed to the physical cash payment. This is through different modes like; payment via an app, net­banking, contactless cards, etc. Going
ahead, digital payment is the need of the hour in consonance with a lot of benefits. Of these, multiple payment options, payment tracking, safety, and security take priority.

Digital payment modes
Learn about the digital payment modes which simplified transactions.

In this blog, I will walk you through the sought after payment modes of 2019.

1. Digital payment using E­ Wallets

E­wallets connote virtual wallets used to make payments with the help of a mobile or a computer device. This isakin to holding the personal, physical wallet under one head. Herein, the account details of a user linked to the
wallet to bring in ease of mapping of a user’s personal information. It comes with security features like passwordauthentication, KYC check, etc.

Advantages of E­wallets

  • E­wallets do not require you to key in precise details like CVV, the expiry date of the card, mobile number,etc. With these added security features, payment fraud reduced.
  • The user interface of E­wallets is easy to navigate. You won’t experience the hassle of keying in personal details for payment.
  • In other words, the preloaded data facilitate easy payments. As a result, payment processing takes place in a quick and hassle­free manner.
  • Data secrecy happens through the wallet to a wallet or the bank to bank transactions. Hence, this complies with the data security clause of government organizations.
  • On a different plane, e­wallets come with financial incentives and offers. Going ahead, this provides a good return on investments on payment processing.

Disadvantages of E­wallets

  • While e­wallet is changing the face of payments, it is not affordable due to the lack of internet and mobile connectivity.
  • Besides, e­wallet set up requires costly investments in the form of software and hardware.

2. Digital payment using Contactless card payments

This digital payment mode makes use of near field communication (NFC) or Radio Frequency (RFID) technology to facilitate card cum mobile payments. It includes credit/debit cards, smart cards, etc.

On the one hand, Radiofrequency technology involves the use of electronic fields to store data in the form of tags. The tags scanned during a transaction results in payments. Similarly, Near field communication technique makes use of magnetic fields to bring in an end to end transaction connectivity. Some of the key contactless payment providers include Wirecard, SecureKey Technologies, Tyfone, Dynamics, etc.

Advantages of Contactless card payments

  • It brings in fast payment transaction and settlement. Also, NFC avoids the waiting time associated with contact card payments.
  • Due to the inbuilt data encryption, there is an added level of security.
  • It brings in the room for prospective innovation.

Disadvantages of Contactless card payments

  • The cards are propense malware attacks. So, this brings in a security risk.
  • Being an advanced payment mode, the payment option is costly which everyone cannot afford.
  • Since it is an advanced technology, very few merchants use this technology.

3. Digital payment using Payment Cards

This digital payment mode deals with electronic money transfers via cards like debit, credit, smart, etc. Besides,the cards are electronically linked to a customer’s bank accounts. The card authentication takes place with the help
of PIN, CVV, etc. Also, these cards are used at ATMs, POS machines and online payment platforms. The subsequent usage charges are very low.

The technologies associated with the cards are magnetic strip technology, embossing, and smart card technology. In a magnetic strip card, card data stored in the magnetic strip is read by swiping it. In a smart card, hologram and ICs bring about counterfeit prevention.

Advantages of Payment cards

  • Easy and convenient transactions by avoiding physical cash. Herein, transactions take place conveniently by using the inbuilt data present in the cards.
  • Payment cards have inbuilt payment tracking. With the credit history tracked, it keeps a check on taxation issues.
  • Besides, the cards come with offers as incentives for online payments. Hence, this creates a favorable payment environment in the long run.

Disadvantages of Payment cards

  • Payment cards create a culture of debt accumulation. For example, with credit card purchases the repayment happens with the added interest rate.
  • Also, the increasing debit/credit card frauds compromise with the precious personal data of users.

In a nutshell, choose the payment platform which best suits your business requirements. While E­wallets are common amongst small e­commerce players, a contactless card is the upcoming payment trend. Besides,
debit/credit cards support a variety of customer base. Hence, digital payment modes are fast changing the face of payments across the world.

For more payment blogs, click http://blog.sabpaisa.in Learn more about SabPaisa here:https://sabpaisa.in.

Categories
Banking digital payments fintech Hybrid payment gateway

Best Articles On Blockchain Technology – 1 – What Is Blockchain

In these series of blogs written like a tweetstorm, we will summarize the best articles on blockchain technology (in our opinion) published on the web.

Blockchain

This blog will summarize the first such article published in the WIRED magazine which explains what is blockchain. The key points in the article are

1. The world is split between experts who think blockchain is either the most innovative technology since the internet or a solution looking for a problem

2. The digital currency bitcoin is the source of the original blockchain, the software for which was released to the public in January 2009. Blockchain is essentially a distributed ledger consisting of linked batches of transaction known as blocks (the reason for the term ‘blockchain’). Close to 200,000 computers make up the bitcoin network and an identical copy of the ledger is stored on each of the computer

3. Any entity making a bitcoin transaction (transferring digital coins) has to prove they are the actual owner of the coins; this is accomplished by cryptographically signing each change to the ledger. Since the information on each transaction/change is transmitted to every node in the bitcoin computer network as soon as the transaction is recorded in the ledger, the technology ensures no one can commit a fraud

4. Another well-known cryptocurrency Ripple began as an exchange for digital IOUs between parties; it was a prototype of a system for issuing tokens that could be traded with others in exchange for computing intensive work. The idea was to both keep track of how each unit of the virtual currency is spent and prevent unauthorized changes to the ledger. The upshot: No bitcoin user has to trust anyone else, because no one can cheat the system.

5. Advocates have seized on the idea of a decentralized, cryptographically secure database for uses beyond currency. They believe blockchains can not only replace central banks but usher in a new era of online services outside the control of internet giants like Facebook and Google. These new-age apps would be impossible to censor, advocates say, and would be more answerable to users

6. The idea could eventually show up in lots of places. For example, your digital identity could be tied to a token on a blockchain. You could then use that token to log in to apps, open bank accounts, apply for jobs, or prove that your emails or social-media messages are really from you. Future social networks might be built on connected smart contracts that show your posts only to certain people or enable people who create popular content to be paid in cryptocurrencies

7. One of the first projects to repurpose the bitcoin code to use it for more than currency was Namecoin, a system for registering domain names. The traditional domain-name management system—the one that helps your computer find our website when you type wired.com—depends on a central database, essentially an address book for the internet. Internet-freedom activists have long worried that this traditional approach makes censorship too easy, because governments can seize a domain name by forcing the company responsible for registering it to change the central database. The US government has done this several times to shut sites accused of violating gambling or intellectual-property laws. Namecoin tries to solve this problem by storing .bit domain registrations in a blockchain, which theoretically makes it impossible for anyone without the encryption key to change the registration information. To seize a .bit domain name, a government would have to find the person responsible for the site and force them to hand over the key

8. In 2013, a startup called Ethereum published a paper outlining an idea that promised to make it easier for coders to create their own blockchain-based software without having to start from scratch, without relying on the original bitcoin software. In 2015 the company released its platform for building “smart contracts,” software applications that can enforce an agreement without human intervention. For example, you could create a smart contract to bet on tomorrow’s weather. You and your gambling partner would upload the contract to the Ethereum network and then send a little digital currency, which the software would essentially hold in escrow. The next day, the software would check the weather and then send the winner their earnings. At least two major prediction markets have been built on the platform, enabling people to bet on more interesting outcomes, such as which political party will win an election. So long as the software is written correctly, there is no need to trust anyone in these transactions

9. Ethereum and other blockchain-based projects have raised funds through a controversial practice called an initial coin offering or ICO. The creators of new digital currencies sell a certain amount of the currency, usually before they’ve finished the software and technology that underpins it. The idea is that investors can get in early while giving developers the funds to finish the tech.The catch is that these offerings have traditionally operated outside the regulatory framework meant to protect investors, although that’s starting to change as more governments examine the practice

10. Meanwhile, despite the fact that bitcoin was originally best known for enabling illicit drug sales over the internet, blockchains are finding acceptance in some of the world’s largest companies. Some big financial services companies, including JP Morgan and the Depository Trust & Clearing Corporation, are experimenting with blockchains and blockchain-like technologies to improve the efficiency of trading stocks and other assets. Traders buy and sell stocks rapidly, but the behind-the-scenes process of transferring ownership of those assets can take days. Some technologists believe blockchains could help with that.

11. In 2015, some of the largest financial institutions in the world, including JP Morgan, the Bank of England, and the Depository Trust & Clearing Corporation (DTCC), announced that they would collaborate on open source blockchain software under the name Hyperledger. Several pieces of software have been released under the Hyperledger umbrella, including Sawtooth, created by Intel for building custom blockchains. The industry is already experimenting with using blockchains to make security trades more efficien

12. However, all is not sunshiny. Despite the blockchain hype—and many experiments—there’s still no killer app for the technology beyond currency speculation. And while auditors might like the idea of immutable records, as a society we don’t always want records to be permanent. Blockchain proponents admit that it could take a while for the technology to catch on. Also, security is another issue. In 2016 a hacker made off with about $50 million worth of Ethereum’s custom currency intended for a democratized investment scheme where investors would pool their money and vote on how to invest it. A coding error allowed a still unknown person to make off with the virtual cash.

13. All said and done bitcoin/blockchain proved that it’s possible to build an online service that operates outside the control of any one company or organization. The task for blockchain advocates now is proving that that’s actually a good thing.

Please read the full article here: 

The Wired Guide to the Blockchain

For more blogs, visit SabPaisa Blog

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here: https://sabpaisa.in