Let’s look at the more positive aspects of Blockchain and the benefits of crypto assets, and considering the favorable points that make it a practical alternative to more conventional forms of financial transactions.
One of the main advantages of crypto asset transactions is that the two parties conduct the transaction directly, taking place on a peer-to-peer networking structure, which removes the involvement of middlemen, a standard practice. This hints to greater transparency in forming audit streams and also less confusion over who must pay what to whom, and better answerability. So the two parties involved in a transaction know each other and how can the make the transactions visible.
- Asset Transfer:
Blockchain crypto assets network can surely be used to enable specialist modes of transfer. As the Crypto asset/crypto-asset contracts can be/are designed to add third-party approvals, make reference to external facts, or be completed at a specified date or time in the future. It lessens the time as well as the expense involved in transferring the assets because the holder has the sole rights to his crypto asset account.
Each transaction a crypto asset holder makes is an exclusive exchange between the involved parties, the exchange of information is completed on a “push” basis, in which you can transfer precisely what you wish to send and not any other information. Unlike under credit and cash systems, all the transactions history usually converts into a reference document for every transaction an individual makes, for the bank or credit institution. This protects the confidentiality of your commercial history and saves you from the threat of account hack or identity theft, as there are more chances under the traditional method, where your info can be exposed in the transactional chain.
- Transaction Fees
You can fully eliminate the transaction charges once you start dealing in mining crypto assets or engaging in the Blockchain system. The data miners who mine these currencies received their rewards from the crypto asset network involved. There may be some external fees involved if you engage the services of third-party management service to maintain your crypto asset wallet, but another one of the advantages of crypto assets is that they are still likely to be much less than the transaction charges incurred by traditional financial systems.
- Greater Access to Credit
Digital data transfer and the internet are the media facilitating the exchange of crypto assets. So these services are potentially available to anyone who has a viable data connection, some knowledge of the crypto assets on offer, and ready access to their relevant websites and portals. As per an estimation that there are currently 2.2 billion individuals across the world who have access to the Internet or mobile phones, but do not currently have access to traditional systems of banking or exchange. The crypto-asset ecosystem holds the potential to make asset transfer and transaction processing available to this vast market of willing consumers – once the required infrastructure is put in place.
- Easier International Trade
Though largely unrecognized as legal tender on national levels at present, Crypto assets by their very nature are not subject to the exchange rates, interest rates, transactions charges, or other levies imposed by a specific country. Using peer-to-peer mechanisms of Blockchain technology, cross-border transfers and transactions may be conducted without complications over currency exchange fluctuations, and the like.
- Individual Ownership
In a traditional banking or credit card system, you effectively turn stewardship of your funds over to a third party that can exercise the power of life or death over your assets. Accounts may be closed without notice for infringements of a financial institution’s Terms of Service – requiring you as the account holder to jump through hoops in order to get yourself back into the system. Perhaps the greatest of all advantages of crypto assets is that unless you’ve delegated management of your wallet over to a third-party service, you are the sole owner of the corresponding private and public encryption keys that make up your crypto asset network identity or address.
As of today, there are almost over 1200 unique altcoins in circulation all over the world. Many are quite temporary, but a substantial proportion has been created for specific use cases that define the easiness of crypto-asset concepts. There are many privacy coins, which aid in covering your identity on the Blockchain, and supply chain tokens, which can enable supply chain operations for various types of industries.
Strong security measures with the use of algorithms are embedded in Blockchain platforms. Once the transfer of any crypto asset is authorized/established, it cannot be reversed as is the case of charge-back dealings endorsed by credit card companies. This is privet against fraud that requires a specific agreement to be made between a buyer and seller regarding refunds in the event of a mistake or applying a returns policy.