Everyone wants to march to financial freedom, but it is never easy because of the limitations that come with the traditional banking system. We are all used to comprehensive background checks when applying for loans, but what if you were told it can be a thing of the past?
That is the emerging reality with blockchain technology and DeFi platforms. Here is a closer look at the main freedoms that come with this technology and why you should start using it.
Blockchain Technology: A Deeper Look
To understand how these freedoms come by, let’s start by answering the main question, “what is a blockchain?”
Blockchain is a distributed ledger or database that works when installed in the computers (nodes) of the users in the network. It is decentralized because users spread in the network help confirm transactions instead of centralized management common with banks.
When you make a transaction request, perhaps to send funds to a specific public key, the transaction is picked by the nodes that confirm there are ample funds in the sending account.
If everything is okay, they allow the transaction to proceed, record the details in the next block, plus add it into the blockchain.
Once the information is captured and added to the blockchain, it cannot be deleted. Good examples of blockchains include Ethereum and Cardano. To use a blockchain, you need to have the native currencies, commonly referred to as cryptocurrencies.
These are forms of digital currencies and you can use them in many ways, such as sending value, trading, or buying products from sellers who accept them. If your country or state accepts them, such as El Salvador and the State of Ohio, you can use the coins to pay for government services, including paying taxes.
Freedoms that Come with Using Blockchain Technology and Crypto Coins
The creation of the first blockchain network in 2009 opened doors to a whole world of new opportunities. Now, it is employed in the health sector, retail business, and investment niches.
When it comes to finances, the applications are very diverse. Here are the main freedoms to anticipate:
- You Can Send Funds Anytime of the Day or Night
If you are using a traditional bank, making transactions that require going to the cashier, manager, or banking hall, are only possible during working hours. For example, you can send a lot of money or make withdrawals on weekends and public holidays.
However, blockchain networks and cryptocurrencies are open, allowing you to send funds any time of the day or night.
You can even wake up at midnight and send millions in crypto coins because there is no third party that is involved.
- No One Gets to Know Your Personal Details when Sending Funds
Think of it this way: a lot of people get to see your personal details when you send or receive funds. These include cashiers, bank managers, and fiscal management staff in your country.
There is no privacy at all! The lovely thing about blockchains is that no one can know your personal details. Here, know your customer (KYC) policies do not apply because all you need is to have ample coins in your account.
- Your Information Cannot be Lost or Corrupted
Many banks, just like other companies, are at risk of losing data. This can happen through hacking attacks or insider threats. If the files are attacked by ramsomware, there is a danger of the information getting stolen or damaged.
After such incidents, accessing your funds might be challenging. Well, you can say goodbye to such challenges because blockchain uses distributed ledgers, which store data in different computers.
Again, the data stored in the blockchain is immutable, implying that it cannot be deleted, changed, or corrupted.
With blockchain technology, you get a lot of financial freedom that could not have been possible with traditional banking systems. Remember that you need to start by identifying a good blockchain network to work with and buy some coins. Visit hi.com to learn more about blockchain, DeFi platforms, and use them to enjoy the freedoms we have listed above.