Cryptocurrency: Correcting The Already Failed System Of Financial Institutions

Introduction

Recently, I have really appreciated the life changing system that cryptocurrency has brought to humanity. This appreciation was catalyzed by several research which I have indulge myself in, tryin g to figure out and gather more knowledge about the crypto verse. Knowledge they say is power, and we need more power to dominate every aspect of life.

In some of my previous post which i listed below, i tried dishing out related concepts of a new form of technology. This technology which is a Distributed-Ledger-Technology, also known as Blockchain technology has added more values to our current world.

The issue of superiority and boss like attitude of financial institutions was becoming very alarming. Citizens of a particular country could barely cope due to the poor services that these financial institutions offers. We even sometimes suffer for their own errors like the global crisis that struck the world around 2007/08.

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The Subprime Mortgage Crisis is still a moment that most people won't forget in a hurry. It got so bad that customers deposits could only act as saving grace for these financial institutions that thinks they offer the best. Greed, Selfishness, Corruption, etc is now seen in the banking sector today, where certain group of people are only focus on even when it's not just their money.

In relation to the blockchain technology, the mysterious game changer who happens to be Satoshi Nakamoto came up with another level of banking system through a written white paper. Satoshi introduced Bitcoin as a peer to peer(p2p) system of banking.

Third Party Problems

I prefer using the term third party, because it sounds more standard when we try to put them in the position they belong. These third parties are clearly the backbone we see in our today's day to day form of transactions. In order word, we can say that they stand as intermediaries on behave of those who makes transaction.

The third party sector got it's stance the very moment gold and silver became unwise to be taken about. Another form of exchange which happens to be fiat currencies was introduced and third parties where needed as agents that could help in the control of those currencies.

Third Parties like banking institutions clearly have access to our deposits and might also choose to accept any of our transactions in their own wish. Some transaction process can be delayed due to how large the amount of money that was intended to be sent is. Third party clearly dictates for their customers.

Payment Network shouldn't be left out of this, as this companies also work with banking institutions to make online payment possible. Their charges are clearly not customer friendly, but they choose to do this because they think that their customers have no choice other than them.

The issue of card maintenance fee, slow transaction process, auto reverser, etc, are also some problems that this financial institutions brings to the table, unlike a normal crypto transaction that doesn't act in such ways.

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Peer To Peer Solution

Satoshi's idea of peer to peer was to create a simple banking system, where two people or group of people can simply perform transactions without needing any form of third party to carry out the operation on their behave. In order words, we can say that only the sender and receiver are clearly involve.

This p2p form of transaction is clearly made possible with the application of Distributed-Ledger-Technology also know as the Blockchain technology. Blocks are being created when ever any p2p transaction occur within the blockchain system.

The most interesting part is that no Third party is involve in this form of transaction. When blocks are being created by miners, every computer which is connected the blockchain does the validation of that transaction, which makes the record of that transaction permanently stored and can't reoccur in the sense of double spending.

In relation to vault that we find in banks and reserves, digital wallet was a preferred place for the storage of digital assets such as cryptocurrency. A p2p transaction only involves the sending of assets from one wallet to the other, while financial transaction records are stored in the blockchain.

I can boldly say that satoshi's work is a clear brilliance, trying to balance every systematic sector of this new form of transaction without involving the aid of a third party.

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Becoming Our Own Bank

If there is something every man would want for himself, is to have the freedom to do anything. Becoming your own bank sounds strange or slightly impossible to some people, but the blockchain technology has clearly brought this freedom.

When everyone becomes their own bank, they tend to approve their own transactions whenever they want, and they also dictate whatever amount they choose to send without financial limits. The issue of BLOCKED account would be a thing of the past, as everyone would be in control of their own bank.

One interesting thing about becoming your own bank is that it doesn't require a physical building or financial government license(approval) for start up. Just with your personal digital device, you are in complete control of your wealth.

The issue of security is nothing to be shy of. Authentications are now taking the lead when it comes to digital security. We've seen the best of this authenticators both in softwares(apps) and hardwares(cold wallet). Authenticators would go a long way in the security of our funds.

On another thought, this development has raised some issues like effect on saving money. The plain truth is that cryptocurrency would teach us another level of savings. In other words, We would learn better ways of saving money without the help of any form of third parties.

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Optional Crypto Availability

Haven't understand the new system of financial transactions, it's interesting to know that we have various types or should i say forms of digital money we can posses and use as exchange. All these money a regarded as digital coins/cryptocurrency, though they are not real coins.

There are so many interesting facts about these coins due to their uniqueness and some general identities. Any digital coin can be exchange or swap for the other in exchange platforms like Binance. This is just like swapping some pounds note to dollars.

These digital coins are like different flavors that satisfies different taste. Not everyone can invest in Bitcoin or Ethereum due to their various cost. Other coins appear in different flavors like lower or average price.

Liquid hive which is currently selling at $0.3 dollars gives opportunity to those who can afford such taste. The project have being around for sometime now, even though i joined the project when it was already moving. It's better late than never.

We should note that all this digital forms of money makes changes in price, which i clearly explain how it happens in some of my old post, kindly check the end of this post to see the link to some of my old post.

My Opinion And Conclusion

Knowing fully well that financial institutions and third parties have failed us, peer to peer form of transaction is the only way that can bring a transparent world to us. Becoming our own banking is something that everyone should look out for. Approving our own transactions, and saving our own money without a third party involvement.

The topic of this post and the conclusion clearly explains everything, but it would be more exciting to take just five minutes of your time in reading this post.

Here Are Some Of My Post Below...

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