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:
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. 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.
- 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
- Transactions are instant and trackable
- Overhead is reduced due to 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 charge backs. 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.
- Instant, traceable Transactions
- Minimal Blockchain Transaction Fees
- Secure Distributed Networks
- Instant Transaction with Minimal Verification Requirements
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 ins’t 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.
Blockchain systems for cross border payments resolve many of the major issues facing businesses today that want a simpler more secure solution.