How does blockchain technology aim to enhance payment processes?

Blockchain technology enhances payment processes primarily by creating more efficient payment systems. This is achieved through its decentralized nature, which allows for peer-to-peer transactions without the need for intermediaries, such as banks. This reduces transaction time and costs significantly, as there is no need for multiple layers of verification typical in traditional payment systems.

Additionally, blockchain can process transactions 24/7, making it far more flexible compared to conventional banking systems that operate on specific hours. The use of distributed ledgers ensures that all parties involved have access to the same information in real-time, which minimizes disputes and streamlines reconciliations. As a result, businesses and individuals benefit from faster transaction speeds and potentially lower fees, leading to an overall more efficient payment experience.