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This is one of the most asked questions on many online forums worldwide. It is understandable since the question is an important one. Can this new innovation change financing forever or not? The primary goal of the blockchain innovation was to eliminate the need for any intermediaries when dealing in monetary transactions.
For anyone new to the blockchain innovation, it is vital to understand how blockchain stores information regarding processing transactions. Whenever a user performs a transaction, it goes into a digital block. Since blockchain innovation follows a decentralized protocol, it is difficult to modify the knowledge of every transaction. For this purpose, each chain is given a token which acts as a payment mode.
Blockchain offers users an opportunity of modification, openness and complete division of retail business with the risks of scams, lies, and hacks.
How can Blockchain innovation Modify Finance?
There are countless articles and discussions you may come across that describe how this new innovation will change the working of financial setups forever. In this article, we shall list a few and see for ourselves.
The Introduction of Cryptocurrency
Blockchain innovation has changed the way people view currencies. Today, Bitcoin or Litecoin have become common household names. Since they support free-market ideologies, many people are choosing altcoins over fiat currencies.
Its partnership with Visa and MasterCard only makes purchasing of everyday things even easier. For those who still believe that cryptocurrency can be unpredictable, they need to learn about TenX and Dash.
Elimination of Intermediaries
Blockchain innovation in financial industries will mean an end for the broker market. Intermediaries will soon be eliminated since monetary transactions become quicker and easier to handle. Instead of having to wait for the broker’s confirmation about the transference of funds (which can take days), they can be verified via the peer-to-peer verification. How? Whenever a client makes a transaction, it gets passed onto other noes for validation within the network. Once it has been approved, only then it is added to the chain.
Improving Cross-Border Transactions
Blockchain systems are public entities. They can be protected with only a few users accessing them. This allows the system to become a safe and secure platform and favor financial institutions following strict policies to ensure transparent transactions.
With this in the framework, it will not be concern who processed a transaction or how much cash was withdrawn. Moreover, blockchain innovation can help banks converse billions of dollars by allowing back-office systems to record trades, transactions, and transfer. After all, an electronic journal is much easier to keep an account for than a manual journal used by most banks.
Accounting and Auditing
A blockchain is made from its history, unlike other databases that are just pictures of a specific moment in time. There is a time stamp for every transaction recorded and stored in a system. This means that the global implication blockchain innovation on auditing and accounting may be extensive.
Final Word
So now you know how blockchain innovation can alter the many aspects of financing. As predicted, this innovation will go on to change the way we invest and settle payments in financial institutions. The more popularity this technology gains, the more difficult it will become for financial institutions to survive.
Blockchain vs. Database: Understanding the Differences
Like the internet, blockchain technology has also taken the world by storm. It has become a part of our daily lives. Though still in a state of infancy, it has open avenues for newer technological advancements to develop.
Two of the most commonly associated words with blockchain innovation are databases and blockchain. Many users often use these terms synonymously but there are differences between the two.
For starters, databases run on client-server networks. Blockchain, on the other hand, follows a peer-to-peer network. Their entities also have different cores. In this article, we shall learn about the distinction between these two so that you can make an informed decision when choosing one.
Centralized vs. Decentralized Control
Blockchain follows a decentralized system architecture. This means that if two clients trust each other and wish to share some sensitive piece of information amongst themselves, there is no need for a third-party operator between them. The can easily share information without one. This is possible because of all blockchain transactions process by nodes that act as middlemen. They ensure that each user produces a similar common system of record. This eliminates the need for a centralized control system.
Nevertheless, databases are highly centralized systems. This means that there is involvement of a third-party. The users have to trust the administrator to handle the transactions. It is also in the hands of the administration to allow or restrict you to read and write any saved data on the database. The output is great and maintenance is also very simple.
Efficiency
Whereas blockchain provides an ideal transaction platform, it is a bit sluggish in terms of speed than most digital platforms like PayPal or Visa. Its developers are continuously looking for means to improve its efficiency but despite their efforts, the users still have to deal with a slower platform. This happens because every node that processes a transaction does it individually. It then compares the results with other nodes. This requires time and therefore results in a slower transaction speed.
In contrast, databases have been up and running for years now. They too, started slow, but with time and innovation, their speed and performance improved. Most databases still use Moore’s law to augment the efficiency and performance of conventional databases.
Confidentiality
Ever thought why blockchain rose to such heights in such a short period of time? Well, it all comes down to the confidentiality it offers. Bitcoin is read-uncontrolled and writes uncontrolled. This means that any user can write a new block in the chain and also check one out of the chain when needed.
This isn’t the case with a central database. A database is read-controlled and write-controlled. There is an administrator appointed to keep this in check. As per the network’s protocol, only a few selected individuals can read and write into the database.
However, if the primary goal isn’t to trust but privacy, database offers similar benefits like blockchain.
Final Word
You may have noticed that each of the systems has some basic pros and cons. It is difficult to identify which of the two is a better option since users may have specific needs. Now that you have identified the differences between the two, it is up to you to make a well-informed decision.
AdvCash Review
Short for Advance Cash, AdvCash is a Belize-based firm which issues Bitcoin debit cards. The parent company behind the AdvCash is Wave Crest Holdings Limited –a well-renowned name in the cryptocurrency market. You will be surprised to know that the company helped many debit card issuers to partner with Visa but it itself uses MasterCard to issue its debit card. This saved the company and its users from facing any issues when Visa ceased partnership with other debit card issuers. The decision to opt for MasterCard was only because the company’s primary target audience is digital nomads and freelancer. It wanted to create an easy market for them to penetrate into the cryptocurrency market with ease and also to pay cheaper fees.
In this article, we shall review some of the advantages, disadvantages and fee structures of the AdvCash Bitcoin debit card.
Advantages
- The debit card features an e-wallet. This allows customers to easily deposit Bitcoin.
- Unlike other debit card issuers, the firm supports many e-currencies such as Perfect Money and OKPay.
- The debit card supports SEPA and SWIFT transfers, similar to a current bank account.
- Domestic transfers are free of cost.
- Users don’t have to pay any monthly maintenance fees.
- AdvCash offers strict account security. There are multiple tiers for identity protection of the user.
- All internal transfers are free, and there is no monthly maintenance fee.
- Another great perk is that the users can support Rebels (Russian currency)
Disadvantages
- Unlike most debit card issuers, the AdvCash card, unfortunately, lacks a mobile app, making it impractical in today’s fast-paced world.
- The card is only accessible for Russian and European clients.
- There is not an ample amount of information about the company’s CEO and executives. Having an insight about who runs the affairs and who should address concerns makes for a bad reputation.
- Some verified users complain of purchasing limits when using the AdvCash.
AdvCash Bitcoin Debit Card Charges
- The cost of issuance of the debit card is $5 if the user orders it right away after signing up.
- The price can go up to $15 if the user doesn’t order the card even after one week of signing up.
- The price of the virtual card is $1.
- It is free to use the debit card in physical stores and online.
- If you wish to top-up your wallet, it costs $1
- There is a flat rate fee of $2 for any domestic ATM withdrawal.
- There are no monthly maintenance charges which are a unique perk, not offered by most debit card issuers.
- Currency exchange and foreign transactions cost 2.95%
Summary
- Physical card: Yes
- Virtual card: Yes
- Card type: MasterCard
- Mobile app: No
- Supported fiat currencies: EUR, GBP, RUB, and USD
- Supported cryptocurrencies: Bitcoin (BTC)
- Anonymous: Yes
Final Word
The debit card doesn’t enjoy a positive review on platforms like TrustPilot. However, the management is fast to respond to any customer-related query and ensures all the demands are addressed with satisfaction. Despite this, it hasn’t stopped the bad review from popping up every now and then which calls for suspicion. On the whole, it seems to be a fairly good choice for European and Russians users. If only the company would invest in its distribution channels, the card has the potential to reach amongst the top debit cards. There is news that the company is currently testing its mobile app, which is a good sign. With no monthly charges, low ATM withdrawal rates, and strict security, the card does have the potential to win more customers.
Litecoin Vs Bitcoin: What’s The Difference?
Contrary to misconceptions, Litecoin cryptocurrency is not the first fork of Bitcoin. Those were the digital asset and the Namecoin payment system of the same name. Although this did not prevent Litecoin from winning the title of virtual silver. It is safe to say that 2011 was a turning point in the formation of alternative monetary units. After all, it was then that the beginning of the emergence of a significant number of digital assets based on Bitcoin open source, and after altcoins, the mining of which uses an algorithm that differs from the standard generation process developed by Satoshi Nakamoto (the creator of the first cryptocurrency).
The evolution of crypto active assets is based on the principle of natural competition. The value of altcoins is determined by different features, so the question is: what is better – Bitcoin or Litecoin, does not lose its relevance today. Although, virtual silver from the day of its foundation settled in the TOP-list of digital currency units and continues to hold positions. Moreover, with each drop in Bitcoin quotes, one can hear statements that Litecoin has every chance of becoming a worthy alternative to the first cryptocurrency.
Litecoin and Bitcoin Market Capitalization
Determining which is more profitable, Bitcoin or Litecoin, and taking only the indicators of market capitalization and the dominance index as a basis, we can conclude that Bitcoin is the undisputed leader of the world of cryptocurrencies. At the time of writing (December 24, 2017), the total value of the first digital asset is $ 241 billion. He surpasses the competitor, who settled in the fifth position, more than 16 times. The dominance index, however, varies from 43–44%. The fact that the Bitcoin rate is about $ 13,000 is impressive. This figure is not maximum and has undergone an adjustment after a record retracement of the mark of $ 20,000, but about 55 times higher than the market value of Litecoin ($ 250). It is difficult to understand why the first digital asset should not be a segment leader? After all, he has always been significantly ahead of and ahead of his many competitors in these indicators.
The speed and profitability of transfers Bitcoin and Litecoin
Bitcoin significantly loses its competitor in terms of the speed of remittances. The growth in the number and volume of transactions in the network of the first cryptocurrency caused the emergence of problems with scaling. As a result, it is often possible to see that the number of unconfirmed transfers amounts to hundreds of thousands. The throughput rate often drops to a critical point.
Litecoin many people mistakenly perceive as a test version of Bitcoin. In fact, it is a separate player in the market. This error can be partially explained by the fact that the SegWit algorithm was activated here much earlier. Due to this, so high speed of passing payments increased by 2 times. Moreover, the Institute of atomic swaps was successfully integrated, which allows replacing Bitcoin when performing mutual settlements in the remote mode.
What do we see on the Bitcoin network? Despite the introduction of the Lightning Network (processing of micro-transactions outside the main chain of the blockchain) and SegWit, the early likelihood of launching SegWit2X, the issue of fast transfer operations remains unresolved. However, these details do not give an answer to the question: what is better, Bitcoin or Litecoin? It is known that the services offered by third-party services allow making transfers using Bitcoin coins very quickly, without waiting for the standard 6 confirmations from miners. In addition, you can acquire debit Bitcoin cards to operate your crypto savings without any restrictions.