Consider a scenario where there is absolutely no involvement of banks, payment gateways or any third party intermediaries to process your payments.
Would you go running around in your neighborhood, crying “Eureka!” like Archimedes did, or would you ponder the viability of such a possibility?
The latter might occur at first, but then eventually, you would end up reenacting the joyous moment of buoyancy discovery. That is the power of blockchain. It is a decentralized peer-to-peer network that was designed for private, secure and swift transactions of cryptocurrencies.
If you have used a peer-to-peer file-sharing network like BitTorrent, or Dropbox to synchronize files between multiple computers, you would have a basic understanding of how the network works. With BitTorrent, each computer shares files with others on the network. Files are constantly kept in sync so that everyone has the same copy. Updated copies are replicated to everyone who has a copy of that file.
Similarly, different users participate on the blockchain as “nodes”, working to verify payments made on the network. Once a particular payment is verified, it is recorded in a “block” like a ledger. Every node on the network has a copy of this block, and all these blocks are linked to each other to form a “chain”.
This happens in a highly secured setup, and pretty quickly, thereby putting all instances of theft, hacking and tampering out of the picture. If someone intends to break in and alter records, he/she has to gain access to at least 70% of the network, which is practically impossible. Hence, hackers target only centralized institutions like banks and title companies where all information is stored in a single, unified database or repository.
Now that you are pretty much acquainted with blockchain and it’s wonderful abilities in making your life simpler, let’s look into the 5 most important reasons for using it to make payments:Elimination of third party trust
Banks and other intermediary institutions harness our need to trust each other, to offer us their services. This way, they build an everlasting trust gap, where they “manufacture” some of it and get the rest of it “evoked” from us. Blockchain eliminates that mutual emotion of trust by giving you the complete authority of your payments and transactions.Immutable ledger
Having access to all copies of payments on the blockchain ledger, makes it immutable. So, whenever there is an anomaly in one of the blocks or chains (if the network has multiple blockchains), it can be removed and replaced with its copy. This way there can be no instance of forgery.Complete visibility of asset life cycle
Information about transactions of all recorded assets on the blockchain, can be reviewed anytime. This is mainly possible because every block in the chain contains details from previous blocks. Asset lifecycle management hits a whole new level with blockchain.Enhanced security
Once a transaction is grouped into a block, a hash (security key or password if you may call it) is assigned to it, enabling users to easily detect changes to the data. The hash is unique to that block and stays with it forever. Such encrypted protection is considered unbreakable.Swift payments across borders
The blockchain’s wonders lie in making international payments, safe, private, swift and pocket friendly. Haven’t you dealt with exaggerated timelines, exchange rates, excessive regulations every time, while sending money to your friends, family and peers across borders? Well, all that can take a backseat with blockchain.
Intrigued by the idea of moving over banks to lend money to people in other countries? Convinced by how blockchain can take care of your payments? Then you should definitely look forward to leveraging our Etherecash token, which will be up for sale through our ICO, come October 25th.Purchase our Etherecash token through our ICO from October 25th 2017. Developed on the ERC20 blockchain technology with lawyer backed contracts, to make blockchain backed lending and fund management, private and seamless.
Buy our tokens now. Visit Etherecash.io.