What Does Blockchain Do?

Blockchain is bullshit. If you weren’t aware yet, a blockchain is simply a decentralized database. Not even that decentralized. You read that correctly, a blockchain is a database. The only way it makes sense is in the context of Bitcoin.

Yet, many people are selling the snake oil.

Here’s some bullshit that I had written a long time ago:

Some outsourced bullshit

What is a blockchain? Transactions that rely on centralized processing databases are time-consuming, expensive and frustrating for consumers. These transactions involve fees and overhead that erode the profits you have already earned. Blockchain technology offers a secure alternative that eliminates costly client-server setups that currently make up the majority of financial interactions on the web. For example, when using Bitcoin for cross border payments on a distributed network model, each node in the blockchain is responsible for authentication and broadcasting. Also, clients in possession of a private key are protected from sharing excessive personal data while benefiting from a network that is inherently more secure due to lack of a centralized server vulnerable to outside attacks.

Client-Server networks require excessive (costly) protocols to maintain security. A transaction can take up to three days to process, slowing down the supply chain. Clients are required to share personal information to set up accounts. The expense associated with traditional networks unnecessarily diminishes profit margins.

With Traditional Payment Services

  • You are forced to wait until slower transfers clear to finalize transactions
  • You pay high fees for transactions between countries
  • You are responsible for managing a centralized network
  • You assume responsibility for security and storage of account information
  • Users are required to create accounts/Provide sensitive information

With Blockchain Services

  • Transactions are instant and trackable
  • Overhead is reduced due to the distributed network
  • Transaction histories are recorded in each blockchain
  • Clients only need their passkey to initiate transactions
  • With Bitcoin for cross-border payments, cross-border transactions are secure and simple

So what is a blockchain, and why use blockchain for money transfer? With services like Ripple Transaction Protocol (RTXP) and other blockchains, transaction fees are no longer a barrier to cross border payments. Blockchain are not only secure and instant, blockchain transaction fees are essentially free without chargebacks. Ripple and other blockchains rely on the distributed network system that assembles a record of the entire transaction history for each account in a single file that is passed between nodes on the network. This maintains a completely up-to-date profile for every transaction without the need to access a central server for authentication and verification. The result is faster, easier, more secure transactions for a fraction of the cost.

  • Transactions are instant and trackable
  • Overhead is reduced due to the distributed network
  • Transaction histories are recorded in each blockchain
  • Clients only need their passkey to initiate transactions
  • With Bitcoin for cross-border payments, cross-border transactions are secure and simple

SMBs asking themselves ‘Why use blockchain for money transfer?’are discovering developments in the payments industry that are opening borders for business of all sizes. Size is not the barrier it used to be. Currently, businesses are stuck in the waiting game where a wire transfer can take up to three days to complete, larger working capital is required and supply efficiency is hampered by outdated systems. Blockchain cross border payment systems reduce wait time to nearly zero, eliminate high transaction fees and provide a simpler, secure alternative.

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Blockchain systems for cross border payments resolve many of the major issues facing businesses today that want a simpler, more secure solution.

Blockchain FAQs

How trustworthy is blockchain?

Blockchain is a decentralized ledger technology that is used to record transactions in a secure and transparent way. It is based on cryptography, which makes it very difficult to tamper with the data.

Blockchain is trustworthy because it is tamper-proof and decentralized. This means that it is very difficult for anyone to hack or manipulate the data. Additionally, blockchain is transparent, so anyone can view the transactions that have been recorded on the blockchain.

Can blockchain be hacked?

Blockchain can be hacked, but it is very difficult. Blockchain technology is based on cryptography. This makes it very difficult to tamper with the data on the blockchain.

In order to hack a blockchain, an attacker would need to control more than 50% of the computing power on the network. This is very difficult to do, as blockchain networks are spread out across the globe. Additionally, blockchain networks are constantly being updated with security patches. This makes it more difficult for attackers to exploit vulnerabilities in the network.

What is the biggest problem in blockchain?

The biggest challenges in blockchain technology include scalability issues, energy consumption concerns, interoperability difficulties, regulations challenges, limited adoption, user-friendliness issues, privacy considerations, high costs, and legal/ethical dilemmas.

Our goal

We want to inform you about the latest banking trends and developments, by providing comprehensive reviews of banks around the world offering virtual banking services and bitcoin based banking.

Our aim is to help you know the best bank accounts, how to open a bank account, best banks to invest and buy bitcoin, how to apply for payment and virtual cards, how to open a non-resident bank account in the US or EU, how to earn a passive income with your crypto, obtain a loan with your crypto deposits, and many other banking-related topics.