Over the past few years, people have been talking a lot about cryptocurrency. At first, this business sounded scary but people started developing trust in it. You may have heard of Ether and Bitcoin. They both are crypto currencies and use the Blockchain Technology for highest security possible. Nowadays, these currencies are available in several types. Let’s know more about it.
How Can cryptocurrency help you?
As far as fraud is concerned, this type of currency can’t be faked as it’s in digital form and can’t be reversed or counterfeited unlike the credit cards.
Buying real property involves third parties, such as lawyers and notary mining. So, delays can occur and extra costs may incur. On the other hand, Bitcoin contracts are designed and enforced in order to include or exclude third parties. The transactions are quick and settlements can be made instantly.
Typically, there is no transaction fee if you want to exchange Bitcoin or any other currency. For verifying a transaction, there are minors who get paid by the network. Although there is zero transaction fee, most buyers or sellers hire the services of a third-party, such as Coinbase for the creation and maintenance of their wallets. If you don’t know, these services function just like Paypal that offers a web-based exchange system.
Identification of theft
Your merchant gets your full credit line when you provide them with your credit card. This is true even if the transaction amount is very small. Actually, what happens is that credit cards work based on a “pull” system where the online store pulls the required amount from the account associated with the card. On the other hand, the digital currencies feature a “push” mechanism where the account holder sends only the amount required without any additional information. So, there is no chance of theft.
According to statistics, there are around 2.2 billion people who use the Internet but not all of them have access to the conventional exchange. So, they can use the new form of payment method.
As far as decentralization is concerned, an international computer network called Blockchain technology manages the database of Bitcoin. In other words, Bitcoin is under the administration of the network, and there is no central authority. In other words, the network works on a peer-to-peer based approach.