How can blockchain technology help my personal finances?
Do you remember when you had your first smartphone? Few imagined the transformation that would follow. Today the same thing happens with Blockchain technology in the world of finance, allowing to store, transfer information and validate each operation in a totally secure way.
To better illustrate it, Blockchain must be understood as a huge ledger where all money inputs and outputs are recorded without exception, only in this case we are referring to a book of digital transactions that are verified and recorded with a completely coded safe for users.
Although Blockchain technology was born as the coding system behind the creation of Bitcoin (the first cryptocurrency created in 2009) and supports its entire structure, its great potential soon became clear.
Its best attribute is that unlike traditional methods such as those of banks, which depend on intermediaries to verify and record each movement, the Blockchain is capable of performing these steps directly and without the need for third parties.
But how can blockchain help in our personal finances? Below Fernanda Juppet, CEO of CryptoMarket explains its 4 main advantages:
1. Security and protection of assets. Blockchain uses advanced cryptographic techniques to protect each transaction. “With this technology, digital assets such as cryptocurrencies are securely protected in each digital wallet with an extra layer of security, since operations must be verified by the network before being confirmed,” says the expert.
2. Transparency and traceability. Transparency is one of the main benefits of blockchain, since every purchase, sale or transfer made is made public and verifiable by anyone. This means that users can quickly check any movement, which provides greater internal control, facilitates inspection and prevents crimes such as money laundering.
3. Elimination of intermediaries and cost reduction. By not needing intermediaries in transactions, people can send and receive payments directly, without the participation of banks or other financial institutions, which also reduces intermediation costs (such as the famous commissions) and waiting times.
4. Global access and democratization. Blockchain is a decentralized technology, that is, it is not controlled by a central entity. “This allows global access to financial services, something especially useful in Latin America, where not all people have access to the traditional financial system. Technology makes it easier for us to buy cryptocurrency, transfer remittances, make digital purchases, etc.,” says Juppet.
Finally, it is important to be clear about two things: the first is that blockchain is transforming the way we manage our finances with security, transparency and global access to Fintech services. The second is that it is not something restrictive, since anyone can be part of this revolution.