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How to have a safe payment system
Written by Davies on / Reading time: 3 minutes.
How many times have you wish to have a safe payment system? Who has not dreamed of becoming the owner of their own money? Although many still don't believe it, people, societies and all parts of the world that carries out its operations through banks, do not have full control over their money. This is mainly due to financial institutions that act as intermediaries between two parties. Think of any economic operation you frequently do. A transfer, for example. You do it through your bank, right?
Of course, this has been so traditionally, but technology has opened a world of possibilities in everything we can imagine. Also, in financial services. Consequently, the blockchain technology arises, with it, the cryptocurrencies.
Cryptocurrencies, a new payment system
The concept of novelty in this case is relative. Almost ten years ago, the first virtual currency arose, the Bitcoin. Since then, many cryptocurrencies have been developed. However, even though most of them have followed in the footsteps of the bitcoin, speaking in terms of technology, it is true that there have emerged forks that add new possibilities.
Either way, the set of cryptocurrencies that are already on the market have revolutionized the financial system and their access in countries with greater difficulty. For example, some parts of Latin America, including Venezuela and Colombia, where many people do not have access to financial services.
Cryptocurrencies have established a light of hope for this part of the society, especially because of the amount of benefits that this opportunity provides. Their chances to make instant payments at a low cost, at any time and place, has made it a new decentralized payment system. This technology helps you to say goodbye to banks and any other intermediary.
What are the functions of cryptocurrencies in our world?
To understand the functions of cryptocurrencies, it is essential to know something: what is exchanged is not money but value in the form of cryptocurrencies. These virtual currencies enable us to perform loan services and credit rating without intermediaries, in contrast to the centralized economy. Therefore, the rapidity and fluency increases.
In the society in general, it is true that many people establish comparisons between the cryptocurrencies and the Fiat money, but those are two very different payment systems. In the case of the cryptocurrencies, the functionalities they provide are:
- Breaking barriers. It is possible to conduct transactions anywhere in the world to exchange value.
- No intermediaries. Operations are based on a peer to peer (P2P) network without intermediaries.
- The operation does not need to go through a bank, thus it is more quickly.
- No state, central bank or financial institution controls the cryptocurrencies.
- Pseudo anonymous. We are talking about this because, although we may not know who performs transactions, the money is traceable.
- Blockchain technology provides the necessary security and transparency to operate on cryptocurrencies.
Apart from these advantages, it is also important to remember a phenomenon: there are increasingly more physical and online stores that are betting on the payment via cryptocurrencies. The world is joining this movement, although the growth steps are made at slow pace.
Are we in the beginning of the future payment system?
With an eye toward tomorrow
As utopian as it may seem, there are professionals who dare to set an expiration date to the state money. We have seen it through headlines of columns as "the end of state money has already begun". The reality that is brewing in our days is that what began as a dream a decade ago, today has already become a multiplied reality. We say multiplied because we do not speak only about the Bitcoin, but also about the Litecoin, Ripple, EOS, etc.
Satoshi Nakamoto had an idea, he visualized it in his mind, and subsequently he gave it a form and a path to follow. It was called Bitcoin, an idea that is premeditated and planned to improve a situation which, at that time, was present. All those professionals who currently work in cryptocurrencies are carrying out actions that can influence events in the future.
Placing our look in the future is aiming higher and higher.