Bitcoin enigmatically appeared in the Internet. Satoshi Nakamoto, its unknown originator, used blockchain technology in order to create Bitcoin.
Blockchains are democratized “public” ledgers. Ledgers are the recordkeeping books that accountants and bookkeepers typically use. Thus, blockchains are one method of record-keeping.
Because blockchain is public, everyone can access it. Democratized means there is no single institution that administers the recordkeeping– there are many.
Conventional banking system
If a person in Dubai were to send remittance to the Philippines, their bank would first verify their identity and confirm that they received money to be sent to the Philippines. The bank in Dubai would then contact the Philippine bank to send the value requested.
The Philippine bank undergoes a similar process of verifying that money was received and that the recipient exists and is who they say they are. This process of record-keeping requires people and technology and incurs costs. The remittance sender is typically charged a fee and the remittance receiver often receives less than what was sent to cover these costs.
Banks act as middlemen in financial transactions. With this role, they charge fees which is expensive especially to low income groups, the majority of the population.
In the case of blockchain, there is no need to go through banks. It eliminates these expensive middlemen and allows direct transactions with anyone who have access to the technology.
To ensure correct recordkeeping, multiple devices are used in the blockchain around the world in anetwork. They simultaneously record and verify the transaction.
If even a single of these devices in the blockchain were not to match, then the entire transaction would be invalidated because it is no longer consistent is the network. This prevents fraudulent recordkeeping to occur and upholds the integrity and accuracy of the network.
Blockchain is efficient
Using blockchain through the internet, the middleman is eliminated, and transaction fees would be reduced. It would be a cheaper system compared to the current system of incurring bank fees.
Blockchain keeps your privacy
Typically, banks require proof of identification in order to proceed with transactions. This makes transactions traceable in order to prevent money laundering and financing of terrorist activities.
Contrary to conventional banking, blockchain is anonymous. The anonymity of blockchain means that there is no need to furnish proof of identity, as the blockchain goes through its own verification method.
However, scammers and criminals were the first to take advantage of the anonymity of cryptocurrency transactions. This resulted to many cryptocurrencies linked to illicit financial transactions that continues to paint cryptocurrencies in bad light.
Use of blockchain
Cryptocurrency is just one use of blockchain. As a secure, efficient, and tamper-proof method of recordkeeping, blockchain can be used to verify any type of interaction. Its uses could range from government use, insurance, international trade, health care, and real estate, etc.
Admittedly, blockchain is a very powerful technology that could be used for social good. However, when used by the wrong hands, it could also be equally used to the detriment of society.
Sources of information and practical tips on money management
Mga bagay na dapat mong malaman sa insurance
Mga iba pang babasahin tungkol sa insurance:
- Iba’t-ibang klase ng insurance
- Must-have insurance for people in their 30s
- Ang pinakamatatag na insurance company sa Pilipinas (Part 1)
- Ang pinakamatatag na insurance company sa Pilipinas (Part 2)
- Anong insurance dapat mayroon ang mga bata?
- Gusto kong paghandaan ang future ng anak ko, tama bang investment-linked insurance ang kinuha ko?
- Paano gumagana ang ibinabayad na premium sa insurance para mabigyan tayo ng proteksyon sa panahon ng emergency
- Kung akala mo insurance ang education plan, basahin mo ito
- Insurance para sa mahirap
- Bakit mahal ang VUL o investment-linked insurance
Mga bagay na dapat mong iwasan sa insurance
Ito ang listahan ng mga articles na isinulat ko at videos na nagawa ko tungkol sa VUL para makakuha tayo ng mas sulit at mas epektibong insurance coverage.
- Bakit mahal ang VUL?
- Bakit mas maganda ang BTID kaysa VUL?
- Epektibong paggawa ng BTID upang masulit ang pinaghirapang pera sa insurance at investment
- Paanong mas maliit ang fund value sa VUL kaysa sa BTID?
- Ok ba talaga ang VUL kasi protected ka nito beyond 65 years old compared to term?
- Ok ba talaga ang VUL para sa estate taxes?
- Why Not VUL?
- Anong gagawin ko kung may VUL na ako? Paano ko ito ititigil?
- Pagkakaiba ng savings sa VUL
- Mga terms and conditions na kailangang hanapin kung bibili ng VUL
- Paano pumili ng mabuting insurance agent
Different kinds of investments
Preparing for retirement
How are articles on retirement
- 10 Commandments of retirement
- Mga kinakatakutan ng retirees at paano ito paghahandaan
- Magkano ang matatanggap mong SSS pension upon retirement
Watch videos on money management
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