The Blockchain doesn’t merely offer a secure, decentralized method for gathering and exchanging data, it offers a fundamental threat to the central banking models of the last few centuries.
SPONSORIf you like this content, be sure you click here and support iState's ability to deliver to you news for the iStater, the state of one.
From Activist Post
Cryptocurrencies and a New Type of Finance
By now, most people are familiar with cryptocurrencies in some fashion. Whether or not they fully understand them, though, is based upon their exposure. But with the popularity of Bitcoin in the news, most are at least aware that a different currency exists outside of the typical one.
It was Bitcoin that brought cryptocurrency into the spotlight, introducing many people to the idea of a financial system operating outside of the reach of major banks. Though, unfortunately, it was also Bitcoin that rather soured the average citizen on the idea of cryptocurrency as well.
It’s–relatively–anonymous exchange coupled with media efforts to link cryptocurrency with crime, sullied the first impression people had with the currency. There was also misconduct of certain individuals within the Bitcoin sphere, which led to cryptocurrency being mislabeled and misunderstood.
But what if we take a step back to look at the cryptocurrency for what it is and what it can do? We see the best possibility for breaking the chains of modern banking and freeing people from the power of the banks.
Cryptocurrencies are a way to remove major banks from the equation of personal finances.
They allow people to trade, buy, sell, and use a medium of exchange more quickly, more securely, and without the need for a bank.
In principle, cryptocurrencies are the best way for people to take back their freedom to act in their own best interests, without relying on manipulative banks.
The Blockchain and Secure Banking
The sense of security that you can get from a major bank stems from the ability of the bank to process and reflect transactions in an accurate way.
Banks act as the intermediary ensuring all transactions are to some level accurate and secure from fraud.
But for the sense of security it gives individuals, modern banking is anything but secure.
Fraud occurs from within the institution itself, as witnessed by the major scandal facing Wells Fargo.
From the outside, banks are not impervious to breach as hackers often break into the networks used by banks.
So, that sense of security is merely a feeling and not reflective of the reality of modern banks.
Banking can be done securely. But the current system is unable to do it.
This is where cryptocurrencies flourish.
The technology behind cryptocurrencies relies on a principle called the blockchain.
The simplest explanation is that the blockchain is a means of securing information across a vast network of computers. By design, it ensures that transactions are always conducted in a secure fashion. Anyone can confirm this on the public ledger.
The science behind the blockchain requires an understanding of cryptography and the ways in which computers communicate. In application, it is simply a built-in system that protects the accounts of every person within the system.
And yes, hackers can steal tokens kept in online wallets. But there are hardware wallets, kept offline, that are like safes for different cryptocurrency, and even allow recovery if stolen. Yet they are thus far impervious to hackers.