Benefits of Decentralization
Since traditional currencies are issued and regulated by a government, they play by the rules of that government at every step —no matter if they’re physical or digital.
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Since traditional currencies are issued and regulated by a government, they play by the rules of that government at every step —no matter if they’re physical or digital.
Systems like PayPal or Venmo, and of course, banks and digital wallets that work with a certain national currency (USD, EUR, etc.) are obligated to follow a whole set of rules and limitations, and are free to add their own. Real privacy and control for users are almost nonexistent this way.
One major advantage of cryptocurrencies over traditional fiat e-money is, indeed, the level of privacy and control they offer to users. transactions can be made pseudonymously, providing greater privacy compared to traditional banking systems, where personal information is often required and tracked.
Additionally, users have greater (or full, depending on the underlying technology — see below) control over their funds, as they hold private keys to their digital wallets, unlike fiat money which is stored and controlled by corporations that can freeze it or restrict the user’s freedom to use their money.
Cryptocurrencies also offer flexibility in terms of accessibility and usage. They can be sent and received globally without the need for intermediaries, often with lower fees and faster transaction times compared to traditional cross-border payments. This makes them particularly useful for people in regions with limited access to banking services, or for those who value independence from traditional financial systems.\
More autonomy, less censorship
While cryptocurrencies are designed to be decentralized, they can still be susceptible to manipulation or censorship, especially in networks where there are middlemen before a final transaction approval. miners and “validators”, for instance, could potentially collude to influence the network, such as blocking certain transactions or favoring others, thus undermining the system's integrity.