.png)
Cryptocurrencies are digital currencies that can be used to buy goods and services but use online ledgers with strong encryptions to secure transactions. Cryptocurrencies work using a specialized technology called a blockchain. The blockchain is a decentralized technology spread across many computers that manage and record transactions. Blockchain
There are several inherent benefits of transacting cryptocurrency over fiat currencies due to these exhibits' unique characteristics.
A more distributed and complex payment mechanism could theoretically be generated by the technologies underlying crypto assets. They use so-called distributed ledger (DLT) technologies (or blockchain). In a decentralized payment system, this technology requires a digital currency to be used.
According to Luno CEO, Marcus Swanepoel, “We've learned how the new financial system can fix issues that none else does, from the very serious, such as unbanked banking, to the seemingly insignificant, such as offering a more effective way to purchase a vehicle”.
A store of value
There was once a time when the barter system existed in the world. Someone who would like to sell or exchange their products would have to find another person willing to trade those products for the exact other products they were looking for. This is called a double desire coincidence. Fiat money solved this problem by creating a store of value.
Cryptocurrency is therefore expected to relapse fiat just like fiat replaced the barter system. It provides an alternative store of value that not only allows users to pay for items but also allows them to pay for other currencies. The innovation has also been utilized for applications other than money, for example, machine-to-machine trades in the IoT supply chains, and advanced character management.
Asset Transfers
By paying the seller by Bitcoin, Bitcoins can be used to transfer asset ownership from one name to another name. It all occurs in the ecosystem of the blockchain. This makes it easy for you to execute purchases quickly and efficiently. The cryptocurrencies are planned to add permissions by third parties, which can be finished by a future date.
Simple Transactions
There are many transaction fees that you must pay for each transaction if you are doing business or dealing with brokers or legal representatives. Besides, a lot of paperwork, brokerage costs, commissions, and other things have to be met.
Cryptocurrencies eliminate the need for the middleman. The exchange will take place on the safe network one by one. The transfers would be transparent, and the audit trails would be easier for you to create.
Security
The main appeal of this technology is the security it upholds. Cryptocurrency gives you full control and possession of your asset using something as simple as a private key.
These keys are randomly generated as soon as a wallet is created and Is only visible to the owner of the said wallet. This makes it impossible to third parties to control what and where your money does and goes.
First published on my read.cash blog!
Posted Using LeoFinance Beta
Posted Using LeoFinance Beta
