Cryptocurrency transaction can be called more transparent because it operates on the blockchain and inherits the features and benefits of blockchain. Some of the reasons are;
Transactions on the blockchain is visible for anyone
This is one of the features and benefits of cryptocurrency and blockchain technology because any transaction on the blockchain is visible for anyone to have access to. Nothing is hidden on the blockchain which means that anyone can see any transactions that are made on the blockchain.
Peer-to-peer
This is another very important reasons why cryptocurrency transactions can be more transparent. Because cryptocurrency transactions are peer-to-peer sent from one wallet to another, there is transparency in the transaction and details of the transactions can be seen on the blockchain.
Use of smart contracts for financial services
Smart contracts can also increase the transparency of transactions because it means that there is no need for third party. We have seen the use of smart contracts in the DeFi space for financial services like lending and borrowing and also staking. Financial services transactions stored on the blockchain is visible for anyone to see and since there is no third party required in the process, it increases the transparency when it comes to lending and borrowing funds and also staking of cryptocurrencies to earn interests.
Decentralization
This is another reason why cryptocurrency transactions can be more transparent. Because of decentralization, there is no central entity or central institution that controls user transactions and funds… which means that users make all the decisions and have full control of their cryptocurrency transactions.
Current Development of cryptocurrency
For me, cryptocurrency adoption is growing rapidly. Let me use Nigeria for an example... Nigeria is one of the countries with the highest cryptocurrency trading volume which shows how popular cryptocurrency is in Nigeria. However, because of the government policies regarding cryptocurrency and the recent ban that was imposed on cryptocurrency in Nigeria, it has somewhat slowed down the adoption rate of cryptocurrency usage in Nigeria. While it is still possible to send and receive transactions through secure peer-to-peer, Nigeria hasn’t reached the stage where users can spend their cryptocurrency to purchase products and services because of the cryptocurrency policy and regulation in the country. Nonetheless, there are some private businesses that are accepting cryptocurrencies as payment options which is great as Nigerians continue to hope for a change in the policies and regulations affecting the growth and adoption of cryptocurrency in Nigeria.
In my opinion, the development of cryptocurrency in Nigeria is slow at the moment due to the government policies and regulations that have affected the growth and adoption of cryptocurrency usage in the country. However, the good news is that the number of Nigerians who are aware of cryptocurrency is increasing at a massive rate. This means that if the growth is much, it would put pressure on the government to have a change in the policies and regulations so as to accommodate cryptocurrency usage in the country. We all know the benefits of cryptocurrency in the area of security, decentralization and transaction speed, which can be beneficial for businesses, institutions and sectors in the country and in turn, increase the development in the country.
Conclusion
Cryptocurrency and its technology has proven to come with a lot of benefits. We have seen some of the benefits of cryptocurrency over the conventional financial system. So far, cryptocurrency is gradually gaining adoption as many industries, institutions, sectors, and reputable individuals adopting blockchain and cryptocurrency technology. When it comes to the benefits of cryptocurrency, blockchain is an integral factor because there will be no cryptocurrency without blockchain technology. With the continuous increase in cryptocurrency awareness and adoption, there is no doubt that there is a huge potential for cryptocurrency in the future.
