Picture this: You run a business where you need to do international transactions. Bank and financial institutions like credit card companies, and payment processors like Automated Clearing House and PayPal are your go-to ways to help you do transactions and keep your business operations up and running. However, you are facing multiple problems with them.
The transaction fees are high, and you have little to no say over how it is determined.
Second, centralized systems like banks and financial systems have multiple intermediaries, leading to delays and friction in the payment process. International transactions, for example, take several days to reflect in your account due to various layers of approvals.
Third, you have limited control over your data and rely on the central authorities to process payments. Options for payment methods and features are often restricted by the chosen institution. Meaning, you can only use the payment method directed by these central authorities.
You have been figuring out workarounds that give you control over your financial data and cut down on intermediaries and high fees. However, you’re yet to find a viable solution to your problems.
What if I tell you we can solve your problems in a jiffy? Yes, that’s true!
The solution to your problem is Decentralized Governance in Payments.
Before we explain what decentralized Governance is, we want to know what is the first thing that comes to your mind when you think about this term.
What is Decentralized Governance?
Traditional payment systems rely on centralized authorities like banks or payment processors. These entities control the rules, fees, and overall operation of the network. For decades, banks have profited heavily from the surge in international trade.
This trade has grown to be three times bigger compared to the global economy (GDP). Banks have earned a whopping $50 billion just from this $5.2 trillion trade network.
However, even though they handle 40% of global trade transactions, banks are struggling to keep up. Heavy regulations and slow and outdated technology infrastructure have prevented these centralized institutions to cover the current $1.7 trillion gap.
Decentralized governance flips this script, distributing power among users and participants in the network.
Decentralized governance refers to a system where the rules and operations of a payment network are not controlled by a single entity like a bank or government agency. Instead, the power is distributed among the users and participants in the network.
Here's a breakdown of how it works:
Decision-Making Power Shift:
- From Centralized Control: Traditionally, a single entity dictates fees, transaction limits, and network upgrades.
- To Collective Power: In decentralized systems, users often hold voting rights through tokens. They can vote on proposals to change fees, implement new features, or even modify the core protocols. This fosters a more democratic and user-driven approach.
Rule of Code:
- Centralized Rulebooks: Traditional systems rely on internal rulebooks and regulations set by the central authority.
- Transparent Code: Decentralized systems use smart contracts, self-executing programs stored on the blockchain. The smart contracts encode the rules and protocols governing the network, ensuring transparency and immutability -- anyone can view the code and understand how transactions work.
Community Involvement:
- Limited User Input: Traditional systems offer limited avenues for user input beyond basic feedback mechanisms.
- Active Participation: Decentralized networks are often community-driven. Users can propose changes to the network, participate in discussions on forums and governance platforms, and contribute to its overall development. This fosters a sense of ownership and incentivizes user involvement.
What are the Benefits of Decentralized Governance?
Decentralized governance offers several advantages over traditional centralized structures:
1. Increased Transparency and Security
Blockchain technology acts as the backbone for decentralized governance. It's a distributed ledger system where data is stored across a network of computers, making it highly secure and transparent.
- Immutability: Transactions recorded on the blockchain are permanent and cannot be altered. This creates a tamper-proof record of all actions and decisions, reducing the risk of fraud or manipulation.
- Transparency: All participants in the network have access to the complete ledger, allowing for open and transparent decision-making. This fosters trust as everyone can verify the information and hold leaders accountable.
- Cryptography: Blockchain uses complex cryptography to secure transactions. Each block in the chain is linked to the previous one using cryptographic hashes, making it virtually impossible to hack or change the data without detection.
2. User Empowerment and Control Through Token Voting
Decentralized systems often use tokens to represent voting rights. Here's how token voting empowers users:
- Direct Participation: Token holders can directly participate in decision-making by voting on proposals using their tokens. This allows users to have a say in how the system is run and what changes are implemented.
- Proportional Representation: The voting power is typically proportional to the number of tokens held. This ensures that users with a greater stake in the system have a more significant voice in decision-making.
- Reduced Bureaucracy: Token voting eliminates the need for intermediaries or complex voting procedures. It allows for faster and more efficient decision-making.
3. Faster and Cheaper Transactions:
Decentralized systems can potentially offer faster and cheaper transactions compared to traditional systems:
- No Intermediaries: Decentralized systems eliminate the need for central authorities to process transactions. This can significantly reduce transaction fees and processing times.
- Automation: Smart contracts, self-executing contracts stored on the blockchain, can automate many tasks associated with transactions. This further streamlines the process and reduces costs.
- Global Reach: Decentralized systems are borderless and operate 24/7. This allows for faster and more efficient cross-border transactions.
Sounds interesting, right?
what if I told you that you could become part of a decentralized governance system where you not only have a say in the process but also earn exclusive rewards? Yes, you heard it right. The Zeebu Protocol makes it possible for you.
The Zeebu Protocol makes the settlement process more decentralized with network participation and governance, where users can actively contribute to decision-making processes, ensuring transparency, efficiency, and inclusivity in telecom settlements. This approach not only addresses the limitations of traditional systems but also empowers users with greater control over their financial transactions.
Zeebu: Leading the Payment Revolution
Zeebu is a leading blockchain-powered payment and settlement platform designed to transform the telecom settlement industry by leveraging blockchain technology. Built on decentralized technology, Zeebu's on-chain invoice settlement and payment solution enables telecom companies to manage their settlements more effectively through real-time, secure, and automated transactions.
How Zeebu is Transforming the B2B Payment Landscape
Zeebu is at the forefront of transforming the B2B payment landscape by introducing a decentralized approach to telecom settlements. Here’s how Zeebu is making a difference:
- Reducing Transaction Costs and Delays By eliminating intermediaries, Zeebu significantly reduces transaction fees and processing times. This is especially crucial for international transactions, where traditional systems can take several days to complete. With Zeebu, transactions are faster, cheaper, and more efficient.
- Enhancing Security and Transparency Utilizing blockchain technology, Zeebu ensures that all transactions are secure and transparent. The decentralized ledger system provides a tamper-proof record of all transactions, fostering trust and accountability among participants.
- Facilitating Seamless Cross-Border Transactions Zeebu’s platform operates 24/7 and is borderless, enabling seamless cross-border transactions. This is a game-changer for businesses that require efficient and reliable international payment solutions.
The Zeebu Protocol: A Leap Forward
The Zeebu Protocol is the next big step in bringing further decentralization and liquidity to the payments landscape. By establishing the largest liquidity protocol dedicated to B2B settlements, the Zeebu Protocol empowers a wide range of stakeholders to participate and contribute towards the future of finance and get rewarded for their contribution. More details on the protocol and launch to follow soon, so stay tuned.
Visit Zeebu.com to learn more and follow us on our social channels for the latest updates.