Blockchain has gone mainstream throughout the years, making established firms in various sectors challenge themselves. The finance industry being one of the most affected sectors, blockchain firms keep working on developing decentralized products tailored to replace traditional banking methods. The recent launch of Knox Wire has brought about headlines regarding its solutions. What makes it unique from other service providers is that it works with eligible institutions to streamline local and international payments. Simply put, the company is mainly focused on interbank payment systems.
Knox Wire has its competitors, so users are wondering whether it is the solution they have been waiting for. For instance, Swift, which has been in the finance industry for over four decades, is the one to look out for. However, Knox Wire has unique features, and by leaving its mark in the industry within a few weeks after launch, makes it even harder for this company to replace Swift. Of course, on the other hand, Swift will fight back to remain on top.
Swift Dominance
Swift was established in the 1970s and features standardized elements that have been helpful to global banks. In addition, it has and continues to serve clients across thousands of institutions globally, making it have a solid reputation that will be challenging to replace. The onset of Swift definitely changed the finance industry and the way people send and receive money globally.
Swift revenue keeps fluctuating but also growing steadily. For this reason, the company has attracted many investors, keeping it more productive. However, this money transfer network system has pitfalls that make Knox Wire a better choice. For instance, the system is relatively slow, and completing cross-border payments can take upto five days.
Moreover, Swift is opaque and expensive since it requires users to pay an upfront fee to eligible financial institutions. On the other hand, Knox Wire features Distributed Ledger Technology (DLT), a protocol that allows the secure performance of decentralized digital databases. Also, Knox Wire partners with various institutions within its network, thus maximizing their income due to reduced exchange rates and transaction costs. Furthermore, there is an option for eligible institutions to use the intermediary currency option, Gold Secured Currency (GSX), to maintain the value of their assets on the network.
Is Knox Wire the Solution?
Knox Wire is here to the rescue by developing various blockchain-based solutions. Through its CEO Stephen McCullah, the company announced during launch that it is set on offering speedy transactions using cutting-edge technology for more efficiency. The unique element about Knox Wire is that it features two systems, Knox Quantum and Knoxnet within its network. In this regard, it powers real-time transactions, and you can also transact offline.
Knox Wire revolutionized money transfer system is still new in the market, and it comes as no surprise that most users are skeptical about trying it out. On the other hand, Swift has already established its reputation in the industry, and beating it to its game will require a solid strategy and plan for Knox Wire. Nevertheless, institutions using Knox Wire have excellent reviews about the system, and they do not deny that it has a positive impact on the payment transfer market.
Ultimately, Knox Wire is taking over cross-border money payments by storm, and it will be more prevalent in the near future. However, note that Swift will not fold its hands and wait for Knox Wire to dominate. With intense competition, it will be interesting to see how Knox Wire and its partners proceed in a few years to come.
