Be Your Own Bank; Blockchain Technology Facilitates A Decentralized Data Transfer Network

Let’s take cryptocurrency back to its roots.

“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with hardly a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts."

-Satoshi Nakamoto

Satoshi aimed at creating a system that relies on cryptographic proof and mathematics rather than basic trust. With blockchain technology and cryptocurrencies, two willing parties can transact directly, without having to trust a third party. The cost of transaction is almost negligible and it’s instantaneous.

The private key to cryptocurrencies is owned by the user alone. No network, once decentralized can control your currency once you have the key. The private key lets you access your currencies, while the public key helps other send you currencies.

Digital wallets are used to store the private keys so that even if a person loses the private key, it can be accessed via the wallets.

Through blockchain technology, you wouldn’t have to worry about scrutiny microtransactions. Every transaction you make through a bank is completely at the mercy of the bank. Rather than use this transparency to ensure security, banks are notorious for capitalizing on this data.

A darker web of marketing schemes and loan schemes benefit from our data.

Blockchain technology, on the other hand, uses its transparency to ensure complete security. While the transactions are publicly recorder, the essence of it is hidden from the public eye. No one on the network will be able to view the origin of a transaction, only that a transaction of a particular amount is being made. Typical banks are far away from adopting such a system.

In other words, cryptocurrencies were invented to develop a peer to peer network for fund transfer rather than continuing to trust in a centralized entity.

Learn about other uses of blockchain technology on www.feelium.co; a blockchain platform with real world applications.