We all think that Cryptocurrency is the new technology that might revolutionize the traditional payment system. Well, it is true that it has the potential to change how people perceive currency.
Most people think theta Cryptocurrency is a technology. But, to tell you the truth, Cryptocurrency is just the product of the technology called Blockchain.
Blockchain is the Building Block of any Cryptocurrency you see in the market today. Without Blockchain technology, you will not be able to experience the decentralized nature of Cryptocurrency.
What Is Blockchain?
To better understand what Blockchain technology is, let’s look at it as a digital log sheet – A sheet that maintains a digital log of all the digital transactions happening using the network. Blockchain allows the user to send and receive money in digital transactions.
In addition, it acts as a digital bank for storing Cryptocurrencies. That means you can use this digital bank and your digital money with the intervention of any third party. In the online transaction market, the Blockchain network is used for smooth Cryptocurrency transactions.
Institutions are still experimenting to find ways to implement Blockchain in Non-Crypto transactions. Once that happens, we might be able to revolutionize the productivity of a business in several ways.
How Can Blockchain Technology Improve Online Payments?
Although we are aware of Cryptocurrencies and how secure they are when it comes to making online transactions, everything is possible because of Blockchain technology.
Because of Blockchain technology, businesses can offer a secure network to make safe and secure payments.
If we talk about Blockchain wallets and how they operate to make transactions, you will find that Blockchain-based Crypto wallets emphasize faster and more secure transactions.
1. Lightning Fast Payments
If you transfer money using the traditional method, the money needs to flow through certain channels of financial institutions for regulatory reasons. While the process ensures the transaction’s authenticity, it can take time – sometimes even days.
With Blockchain, there will be no intermediaries. The only people involved in an online transaction over the Blockchain network are the sender and receiver.
The Blockchain Algorithm automates the regulation to authenticate the transactions, which, in turn, makes the transaction lightning fast.
2. No Extra Transaction Charges
Right now, Cryptocurrency is still a new concept for many. So, to encourage people to use Cryptocurrencies, many governments have exempted additional taxes.
In fact, even if you are making an online transaction using Cryptocurrencies, the transaction fees are almost negligible because of its decentralized nature.
3. No Government Authority Regulation
One of the major problems of the traditional money transaction system is that even though you allow your money to be managed by the central financial authorities, you have to wait for their approval when it comes down to transfer.
But, that is not the case with Blockchain-based online transactions. With Blockchain-based online transactions, there are no intermediaries. The only individuals who are a part of the transactions are the sender and receiver.
4. Protected From Inflation
By now, you must know that there is nothing backing Cryptocurrencies. And being decentralized in nature, no central authorities control it. This makes Cryptocurrency safe from inflation.
The currency issued by the Government is subject to inflation with the price fluctuation of commodities. But Cryptocurrencies will remain the same. Hence, doing online transactions in Cryptocurrencies protects it from inflation.
5. Connect You To Universal Market
Businesses that choose to work with Cryptocurrency as one of the modes of transaction ensure to make an impact in the global reach. The reason behind this is that Blockchain helps businesses with a distributed money management system.
Blockchain ensures that all the online transactions are taking place with a protected database. These are beneficial for the businesses and help them operate in different currencies with different rates.
Blockchain has offered a medium to every industry to make transactions that are trackable and outside the influence and control of any institutional authority. This makes the transaction decentralized and in total control.
If you were here to know how Blockchain payments are made secure using Blockchain, now you know the answer.
If there is anything more you want to know about online transactions and Blockchain, feel free to drop your queries in the comment section.
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