Cryptocurrency, also known as digital money, has been the talk of the town for quite some time now. This new technology is said to change the face of the world economy bringing economic freedom to people and businesses all over the world. Where some people consider it untrustworthy, it is a known fact that with the evolution of technology, cryptocurrency is the future.
The words cryptocurrency and blockchain go side by side. And why shouldn’t they? It is because of the blockchain technology that cryptocurrency holds a strong position in terms of security. Before moving towards these technologies’ benefits, let us have a quick look at the blockchain technology. As the name indicates, it is a chain of blocks where blocks hold information. As cryptocurrency is the transaction of digital currency between two parties, the transaction information, i.e., the date, time, and amount, are stored in a digital ledger or blockchain. After every transaction, no matter where in the world, a block of that transaction is attached to the chain, and the process goes on. For more information visit thewowstyle.com.
You might be wondering how is this beneficial? We’ll let you know in a bit, but first, let us see how beneficial it is using cryptocurrency.
Benefits of Cryptocurrency
There are several benefits to using cryptocurrency. Some of the most notable benefits are:
- Decentralization: Cryptocurrency allows users to make transactions directly without the involvement of any intermediary like a bank, a money-transfer system, agents, or any other party. The transaction occurs solely among the individuals are the best part is that the whole process stays autonomous. The result is transparency and a clear money trail.
- Transaction Fees: When you make a transaction through a bank or any other money transfer system, there is always a transaction fee which can be relatively high. Significantly, if you are making a payment internationally, the fees may rise, leaving you with a hefty service charge. However, if you make transactions through cryptocurrency, you can bypass the whole transaction fee situation. When using this currency, the transaction fee is minimal as compared to other systems.
- Security and no fraud: Fraud usually occurs when the wrong people get your personal or confidential information. Especially when the system is centralized, and the process involves several people, things can get fishy. Cryptocurrency completely eliminates this threat. Because it us a decentralized network, and the transaction occurs between two people only, the information is well protected, and as a result, the chances of fraud are minimal.
- Fast transaction: When you make a payment through a bank or other money transfer system, it may take days if not weeks. Thus, in the case of making urgent payments, waiting for this long can be very frustrating. Especially during the fast-paced world, no one has time and patience to wait for the payments to get cleared from banks or other systems. For this reason, cryptocurrency has been preferred by many. As it doesn’t involve any intermediary pr third party, the transaction takes place in literally seconds. With a simple click, you can send or receive the amount.
- Accessibility: For cryptocurrency, you don’t need to go to the bank to open an account, fill in your details, and go through paperwork. It bypasses the process entirely. No matter where you are, all you need is access to the internet to open your digital wallet. You don’t even have to visit a place physically, nor are you bound by boundaries. As long as you have access to your wallet, things are good.
- International businesses: As mentioned earlier, because cryptocurrency completely eliminate banks and other systems, and there is a direct peer-to-peer link, making international payments super easy and convenient. So, if you are interested in conducting business internationally, digital currency is what you require!
Benefits of Blockchain Technology
No matter how advanced the technology is, there is always a loophole open for fraud with a centralized system. The weakness that banks and other money transfer systems have can easily be exploited. The reason behind this is simple. There are too many people involved, and the information is not as protected as it should be. Keeping this aspect in mind, blockchain technology fills these loopholes, creating an extremely secure system for people and systems all over the world. Here are some of the benefits of blockchain technology:
- Security: The first and foremost benefit of this technology is its security. In blockchain technology, the information is stored in blocks. Once the block is placed in the chain, it is nearly impossible to alter it or the information it holds. With each transaction, the block holds a new code or hash, thus making it almost impossible for anyone to hack that code.
- Transparency: Since there is no centralization, even in this technology, the process is transparent and straightforward. The information is locked away in blocks that can hold up to 1 Mb of information, and each block or transaction has its hash. There is no external force or third-party involved, and things are not complex at all.
- No fraud: because of its high security and decentralization, there is a zero chance of manipulating data for personal gains. The data is secured at all costs, and the lack of external or internal involvement keeps it far away from fraudulent.
- Permanent information: Another benefit of this technology is that the information that gets through this technology stays there permanently. Especially in the context of cryptocurrency, once payment is made, it cannot be reversed or canceled. The information is stored permanently, and nothing can change it.
- Tacking: because of its decentralized nature, the data is stored in user’s computers through an interlinked network; it is owned and managed by the users. Therefore, its tracking becomes easy.
- Other industries: Blockchain technology is not only ideal for cryptocurrency, but its use is overstretched to several fields and industries. For instance, it can be used in supply chain management to track inventory, movement of goods, etc. similarly, it is also used in quality assurance and accounting. It eradicates human error and leads to the source of the problem through the chains. Also, it is used in the healthcare sector to keep patients’ records, etc.
In short, the concept of cryptocurrency and blockchain technology is still emerging, and there is so much more they hold for us in the future. With the advantages and versatility they offer, more is yet to come!