Understanding Blockchain - Part 2
Hello everyone, hope you all are doing good? I'm back with the Part 2 of this amazing series, Understaning Multisig Wallet. If you haven't read the Part 1, I strongly suggest you that by clicking here. In today's article we would be looking at the benefits of blockchain.
There are so many benefits of blockchain as it has really been useful to a lot things in today's world. I will listing and explaining my top 4 benefits of blockchain, which are;
- Transaction Cost and Speed
- Security of Funds
- Immutability
- Smart Contracts
Transaction Cost And Speed: The introduction of blockchain technology has helped in reducing the cost of transaction and enhancing the speed of transactions. Before the adoption of blockchain technology, our only means of transfer of funds within and outside our country was through the bank. The cost of transferring money from one country to another is quite expensive. In my country, if you want to transfer, let's say $100 to another country, you may accrue a transaction cost of over $25 and it might take two days before the person I'm sending the money to might receive the money.
Whereas blockchain technology, such as Steem blockchain, I can transfer over $1,000 and I won't pay a penny and it will arrive at it's destination account in less than 3 minutes. This is one of the many benefits of blockchain.
Security of Funds: Blockchain technology has ensured a better security for our funds. For me, I barely save my money in banks any more, because they are cases when your funds are withdrawn and no one is held responsible, as the bank might blame you for disclosing sensitive account information, but in truth you didn't. You have no authority or control of funds at all. A law is in place in Nigeria, that any account found dealing cryptocurrency with be banned. Imagine you have over $10,000 and your account is flagged, it simply means, your $10,000 has been taken from you.
With the introduction of blockchain technology comes the invention of digital crypto wallets, which are safer than our conventional banks, as you have total control over your funds.
Immutability: With the introduction of blockchain technology, accountability has increased greatly because data are immutable i.e data can not be altered. This is a very good and great way for organizations to keep a proper check and balance of their employees. Accountants and Auditors can no long window dress financial statements because data can not altered as soon as they have been validated by miners of a blockchain. For example, an article I wrote 2 years ago, will still be same till this very day. If I should edit, it saves a new block but the 2 years ago block is still there and haven't been altered. If you used a Steem explorer, you will be able to get the exact words you wrote. I feel the police department should adopt blockchain, so that records can not be changed to anyone's favor, as records are immutable. This is yet another amazing benefit of Blockchain technology.
Smart Contracts: The introduction of blockchain saw the creation of smart contracts which has been more than helpful in today's world. Smart contracts, ensures a transactions takes place automatically as soon as some conditions have been met, hence, no need for third parties anymore. Smart contracts, has encouraged DeFi system to expand more easily. Smart contracts is one of the biggest benefits of blockchain technology.
I hope you all found the article interesting and exciting. Do well to share your thoughts about the article in the comment section below. Thanks.
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