A recent article published on Forbes.com raised the fascinating topic of private, secure payments. There were interesting points raised so we decided to dive deeper into this topic.
“For those businesses who want to use crypto directly, we’re going to see a demand for secure, private payment systems that have the ability to offer KYC/AML options. (Know-Your-Customer/Anti-Money-Laundering) Particularly for businesses, We believe solutions like IronWeave, ZCash, and Dash are going to generate more interest.
– Forbes”
Let’s unpack this topic and get deeper into what’s coming from that direction.
Traditional finance companies (TradFi) have specific needs with respect to payments. They must be private, secure, and comply with the governing regulations where the company is operating. TradFi companies have a fiduciary responsibility to protect their client’s privacy and security along with their assets.
No Web3 platform is addressing each of these needs. Until now.
Some Well Known Web3 Private Payment Solutions
Monero (XMR), Grin (GRIN), and Beam (BEAM) offer strong privacy features with some variance in the specific features each offers.
Zcash (ZEC), Dash (DASH) and Horizen (ZEN) each let you choose between transparent transactions, similar to Bitcoin, and shielded transactions
IronWeave is a new entrant into the world of private payments. We believe they are doing something fundamentally different and better. That difference will make them attractive to both the traditional realm of finance and the Web3 world of Decentralized Finance. (DeFi)
At the core of IronWeave’s innovation lies its permissioned platform, currently under development. This platform empowers users to establish their own chains, tailored to specific use cases, thereby offering unparalleled flexibility and customization. For instance, whether it’s facilitating payments or safeguarding sensitive data transactions, IronWeave constructs private, shared blocks that are shared among participating chains. Crucially, these transactions remain shielded from public scrutiny, ensuring utmost privacy and security—a far cry from the transparent nature of conventional blockchain transactions.
New Data Paradigm in Payments
Whether it’s for payments or any other kinds of data transactions, a private, shared block is created that is shared by participating chains. Both the participating chains and the shared block are private, secure and not visible on a public ledger such as EtherScan. But with the option of being compliant with regulations in whatever jurisdiction it’s operating.
IronWeave’s commitment to compliance, apart from its promise of privacy, is a crucial aspect often overlooked in the crypto space. By enabling users to operate within regulatory frameworks specific to their jurisdictions, IronWeave paves the way for seamless integration into traditional finance landscapes.
This feature is particularly appealing to enterprises entrusted with fiduciary responsibilities, as it ensures adherence to legal and compliance standards without compromising on privacy or security.
Widespread adoption of Web3 private payments has the potential to add significant value to several industries, particularly those that rely heavily on financial transactions and data privacy. Legacy industries will be under pressure to adapt or face extinction.
Industries Ripe for Innovation
Traditional Finance and Banking will need to adapt to the rise of decentralized finance (DeFi) and ensure compliance with evolving regulations related to privacy and security in digital transactions. Est. market cap, including banking and investment firms $100 Trillion.
E-commerce platforms may need to reevaluate their payment systems to offer users more secure and private payment options, potentially leveraging Web3 technologies. Est. market cap of major e-commerce companies like Amazon, Alibaba, and Shopify is in the hundreds of billions to trillions of dollars.
Healthcare deals with sensitive patient data, and ensuring the privacy and security of medical records is non-negotiable. Web3 private payment systems could offer solutions for securely managing and transferring patient data while maintaining compliance with healthcare regulations. Because it can encompass pharmaceuticals, medical devices, healthcare services, and biotechnology the estimated market cap ranges from billions to hundreds of billions of dollars.
Supply Chain and Logistics stand to benefit from the transparency and security offered by Web3 private payment systems, reducing fraud and improving efficiency. The global market size exceeds $10 trillion.
Legal and Regulatory Compliance industries across the board, including legal and regulatory compliance firms, will need to navigate the evolving landscape of blockchain technology and ensure that their practices align with emerging standards for privacy and security in digital transactions. This is a tough one to estimate but the broader legal services market is valued at hundreds of billions of dollars annually.
Media and Entertainment Creators, streaming platforms, and media companies may look to Web3 payment solutions to offer users more control over their data and transactions to foster greater trust and engagement. The global media and entertainment industry is valued at over $2 trillion, encompassing film, television, streaming, gaming, music, and publishing. Leading companies in this sector, such as Disney, Netflix, and Tencent
Government and Public Sector organizations are increasingly exploring blockchain and Web3 technologies for various applications, including secure voting systems, identity management, and public finance. Web3 private payment systems could play a role in enhancing transparency and accountability in government transactions. Since this sector covers so many activities and expenditures we cannot offer what we think would be a meaningful estimate of market cap.
Real Estate often involves complex transactions and sensitive financial data. Web3 private payment systems could streamline property transactions, enhance security, and reduce the risk of fraud in real estate transactions. The global real estate market is valued at nearly $380 trillion, encompassing residential, commercial, and industrial properties
Overall, any industry that relies on secure and private financial transactions, data management, and compliance with regulations stands to benefit from the widespread adoption of Web3 private payment systems.
The IronWeave Payment Solution Is Modular
Returning to our focus on the IronWeave solution to private, secure payments given how modular and flexible this platform will be, we expect it to be an attractive option for TradFi businesses to use. Our research tells us it will be extremely fast and scalable. This is a project to keep an eye on.
Overall we believe that private payments solutions will continue to evolve to meet growing demand for modularity and composability. Moreover, we think IronWeave holds the best promise of delivering the benefits of cryptocurrencies that are private, scalable, compliant and thus most easily adopted by traditional finance companies (TradFi)and the Web3 community.
