Speedy Money Transfer With Blockchain Technology

3 min readAug 12, 2021

Some people may have confusion in understanding the difference between blockchain and Bitcoin. In essence, they are explicitly not the same. Bitcoin refers to cryptocurrency that works on blockchain technology. This innovative technology has led to speedy money transfers. Unlike in traditional banking, with the help of blockchain, this provides convenience to many users.

Basics of Blockchain Technology

Satoshi Nakamoto introduced Bitcoin in 2009. This uses blockchain or a chain of blocks that is inclusive of vital pieces of information. Every block comprises a wide range of transactions. Each transaction records a form of a hash.

Hash is a unique address that is assigned to each block at the time of its creation. A modification in the block can result in changing the value of a hash. The three vital parts of a block are:

Data or information
Unique block ID
Hash of the previous block

To change any hash value, it is required to change the previous block. As there is a series of blocks, changing every hash will not be that easy. Hence, the hackers will also fail in attempting to crash the entire system. Thus, high security is ensured with the timely application of blockchain technology.

Enable Speedy Money Transfer

The traditional banking system seeks a long time to settle. This period may range from hours to days. In the process, the overall speed may slow down. Longer waiting time causes delays and inconvenience to the users. That is the reason financial institutions are upgrading their current banking systems.

Despite the availability of several technologies, none has been as effective as blockchain technology. Blockchain has provided solutions to speed up money transfer processes.

Enhance Customer Satisfaction

With blockchain technology, it has become easy to improve the entire banking system and gain more happy customers. The new technology eliminated the need for intermediaries by approving instantly any type of transaction. This speeds up payments at very low charges. With a reduction in operational cost, blockchain has brought people close to real-time transactions between financial institutions.

Safer and Easier Money Borrowing

Also, blockchain eliminated credit intermediaries. Hence, borrowing money is now safer as compared to the past. Customers are relieved in paying high-interest rates. Unlike in the past, people do not need to pay hefty interest rates.

Blockchain technology in the financial industry has brought benefits both to institutions and customers. This has helped in providing speedy transactions, save time, and prevent transaction delays. Also, you can enjoy P2P payments at a safer way and cheaper cost.

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