Pay Protocol has received much attention in the blockchain industry, providing a solution to the problems of a centralized payment system. The Federal Reserve (Fed), the central bank of the United States, has expanded its banking system to more than $4 trillion dollars since the economic crisis that broke out between 2008 and 2009, and artificially cut key interest rates. In a free market, interest rates function the same as all other prices. They provide information to market participants, serve as an incentive mechanism for buyers and sellers, and balance the market’s supply and demand. However, this response of the US Federal Reserve system only resulted in imbalances and distortions. Due to the increase in the US Federal Reserve’s money supply, interest rates have fallen below the level at which market equilibrium can be maintained, leading to unstable inflation and an initial investment boom in the long term. In general, interest rates, such as market prices, will not reflect true supply and demand conditions when interest rates prevent governments and central banks from functioning on their own. Therefore, it should be noted that the central bank that we have already used is a problem, not a solution.

In addition to these central bank loopholes, it has been proven that there are limits to the central system through a number of data hacking cases around the world. The main disadvantage of centralized systems is that they are vulnerable to data hacking or cyber attacks. Already, we have global clients that were subject to hacking scandals including Yahoo, eBay, Uber, JP Morgan Chase, US Office of Personnel Management (OPM) and Adobe. In 2014, a Russian agent hacked Yahoo to leak 500 million personal information, and in the same year attacked eBay, leaking the name, address, date of birth, and encrypted passwords of 145 million eBay customers. Two years later, in 2016, Uber’s data hacking leaked the personal information of 5,700 Uber users and 600,000 drivers. In the last few years, global companies have been bombarded with cyber attacks and data hacking, bringing into question whether a centralized system is the right answer.

Also, recently, there is a question about the existing centralized payment system. First, the centralized payment system is highly likely to be hacked and stolen because transactions are controlled from a single point. Therefore, it becomes difficult for customers to trust these institutions with their personal information and funds. Second, the centralized payment system is controlled by people, which leaves it under the risk of human error at all times. It can take a lot of time and money to fix these errors. Third, the centralized payment system tends to charge fees for the services provided. These fees are sometimes overcharged, making it inconvenient from a customer’s point of view. As such, the centralized payment system has quite a number of loopholes, and a decentralized payment solution is needed to address these problems. As an alternative, a distributed payment system using the blockchain technology can be considered. The blockchain technology uses an openly distributed ledger to record, store, and share transactions without any possibility of manipulation. Distributed payment systems using blockchain technology are secure, allow for faster transactions, are unlikely to involve human error, and have no intermediaries or intermediary processes.

In this way, with the urgent need to solve the problems of our centralized payment system, Pay Protocol has been receiving great attention because it suggests a solution to the problems that the existing payment system has been experiencing for years. As the loopholes of centralized systems, including the data hacking cases of many global companies, are becoming more visible day by day, Pay Protocol is expected to be praised by users around the world by providing a solution to them.

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