Cryptocurrencies - faster and cheaper settlements with translators?!
Settlements with translators
Currently, most LSPs collaborate with translators from all over the world, who are usually freelancers. Due to the fact that they work remotely from different countries, settlements with subcontractors are very often problematic for translation agencies. Firstly, transfers are often time-consuming and secondly, payment providers charge very high commissions.
In the last few years, cryptocurrency payments have been developing very dynamically, where intermediaries are bypassed through blockchain technologies, and thus the transaction costs are much cheaper.
What is cryptocurrency?
Cryptocurrency is an internet-based means of exchange that uses cryptographic functions to carry out financial transactions. Cryptovalutes use blockchain technology to achieve decentralization, transparency and invariability. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the blockchain makes cryptovalutes theoretically resistant to old ways of government control and interference.
Cheap International Payments
Standard international transfers and purchases usually involve exchange fees and costs. Since bitcoin transactions have no intermediary institutions or government involvement, transaction costs are very low. This can be a major advantage for LSPs. In addition, each transfer in cryptocurrencies takes place very quickly, eliminating the inconvenience of typical authorisation requirements and waiting periods.
Popular cryptocurrencies for payments?
Bitcoin (BTC) has long been known as a great payment network and has been accepted as a lightning-dominant payment network throughout the crypto space where millions of transactions can be processed in seconds, which is much faster than with a conventional Visa or Mastercard.
TrueUSD (TUSD) is a stable coin that can be used as a mainstream trade. You can now pay your salary, buy a coffee or take a loan, which enables a new economy of financial applications in crypto.
Dash is an open source cryptocurrency. It is also a decentralized autonomous organization (DAO) run by a subset of its users, which are called "masternodes". Currency allows transactions that may be undetectable.
Currently, cryptocurrencies are more popular every day. In Germany for example, cryptocurrency is neither treated as money nor given equal dignity with domestic or foreign fiat currency. I believe in the next few years this technology will be used for payments as a standard in the translation market. Of course this is a very complex topic and it is very difficult to explain everything about cryptocurrencies in one blog post. If some has some additional question don’t hesitate to contact me, because cryptocurrencies is my passion and I am more than happy to help you: )