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Transactions cannot be altered
This is another very good benefits of utilizing blockchain technology and cryptocurrency in various industries because one of the characteristics of blockchain is that any record or data cannot be altered once it is recorded on the blockchain. Using this become very beneficial in various industries as a secure way to store information using blockchain technology – as it means that no one can change anything in the future which promotes integrity and truth in the industry.
Transparency
If you look at the main characteristics of blockchain technology, you will see that transparency is one of the core characteristics of blockchain technology and cryptocurrency… by transparency it means that everything recorded on the blockchain is accessible and transparent to everyone. This is great for industries because since blockchain is a distributed ledger, it means that all records are transparent and visible to anyone, which helps in trust in any industry.
Decentralization
Another characteristic of utilizing blockchain technology and cryptocurrency is due to decentralization. We have all seen the downsides of central entities or authorities having so much power and control over decisions in their various industries which could lead to biased and unfair decisions. With blockchain technology and decentralization, the people will have the power to make decisions which encourage fair and unbiased decision-making.
Cost reduction
This is also another very good aspect of blockchain technology and cryptocurrency that various industries can benefit from. We all know that in some industries, the cost of performing certain operations and transactions can be high due to the number of hands, middlemen or departments things have to go through before certain operations or transactions are carried out. With blockchain technology, those costs can be greatly reduced because everything will be automated on the blockchain in a secured, reliable and efficient way, without the need for middlemen which add to the time and cost of performing those operations.
Speed
This is one of the main benefits of cryptocurrencies. Speed is something that has been a major challenge in the current financial system is how slow it can be to send money to people in other parts of the world… with cryptocurrency, people can send money to other people anywhere in the world in less time, some cryptocurrency send in seconds. This can be beneficial for businesses for receiving payments and also for customers to make payments faster.
Rewards
Game companies can utilize cryptocurrencies in their games. For instance, a lot of games have in-game currencies for rewarding gamers, however, these in-game currencies cannot be cashed out rather only used for in-game purchases. With cryptocurrency, game developers can utilize blockchain technology and create cryptocurrency tokens to reward gamers which can be exchanged for fiat or can still be used for purchasing in-game assets.
Uninterrupted payment
This is also a very good benefit of cryptocurrency is that there is nothing like interruption when it comes to payments. Unlike the traditional payment system where network issues could interrupt payments or out of service could slow down payments which becomes a problem for certain industries like businesses… With cryptocurrency, people can be rest assured that they will not have any interruption whenever they want to make payments or out of service issues. All it takes is to choosing the right cryptocurrency to make payments uninterruptedly and faster.
A decentralized system is needed to solve some of the flaws in the centralized conventional financial system. The main reasons why a decentralized system is needed are;
A decentralized system is needed to give users full control of their funds - This is one of the huge benefits of a decentralized financial system because there is no central financial system that controls the funds of users. In a decentralized system, users have full control of their funds safely stored in their non-custodial wallets that provided the keys or seed phrase. With this, users can make use of their funds anytime they want and anyhow they like without any central authority controlling the funds.
A decentralized system is needed for higher security – This is because there is much higher security in decentralization compared to the centralized system. User funds are secured in a secured non-custodian wallet that provides keys. Funds in a centralized system is in the control of the central entity or institution which means that user funds can be at risk if anything happens to the financial institution or financial institution can take control of user funds. Also, in a decentralized system that operates using blockchain technology, data and information cannot be altered which increases security.
- Decentralized system is needed to give power to the users and removing the central authority that makes all the decisions in the system. In a decentralized system, the users make the rules and decisions by reaching consensus. Also giving everyone equal rights in the system.
- A decentralized system is needed due to a reduction in transaction cost - This is also another very good benefit of cryptocurrency over the conventional financial system. At the moment, there is a high transaction cost to send money, especially from one country to another. This has caused a lot of people to look for alternatives to send money which can be problematic and stressful. Yes, there are other means to send money to people from one country to another with a much-reduced transaction cost, however, it would incur another delay before the person cashes out the money as physical spendable currency. With cryptocurrency, there is a much-reduced transaction cost compared to the conventional financial system. Sending money from one country to another is much faster and easier and the person would get the fund in their wallet in less time and can spend it anytime they want.
A decentralized system is needed for transparency. We all know that one of the flaws of the centralized system is that data and information is not transparent and can be altered or manipulated, however, in a decentralized system, data cannot be altered or manipulated because anything stored on the blockchain cannot be altered or manipulated.
A decentralized system is needed to eliminate downtimes that can be caused by single centralized servers. In a decentralized system operating on blockchain technology, there are no downtimes because there are no centralized servers, instead, it makes use of multiple nodes that are run by users in the system.
A decentralized system is needed due to the benefits of uninterrupted payments solutions - This is another very important benefit of cryptocurrency over the conventional financial system. At the moment, there are still delays and interruptions in payments due to network issues or system failure… this can be frustrating to users as the interruptions can lead to loss of opportunities and delayed payments for urgent situations. Cryptocurrency solves these problems because there is no interruption in cryptocurrency payments as everything runs on the blockchain.
- A decentralized system is needed so as to allow users to have full control of their financial decisions and services like in DeFi. In a decentralized system, there is no restriction on financial services like borrowing, lending, staking, allowing anyone to have access to financial services anytime they want at any time.
- A decentralized system is needed because transactions cannot be altered/manipulated - This is another very good benefits of blockchain and cryptocurrency technology. One of the major flaws in the conventional financial system is that transactions can be altered. This means that the transaction record of funds transfer can be altered. However, this is where cryptocurrency shines because any transaction sent on the blockchain from wallet to another wallet cannot be altered and is visible for anyone to verify. This is great because people can send funds safely without any fear of loss of funds through institution manipulation.