Lately, the cryptocurrency has monopolized the world and blockchain technology is getting more and more popular every day. The financial world has SPLIT in two sides, the ones that think cryptocurrencies will rule this financial world and the ones that think this is just another way of gambling and that these virtual coins can’t exist for a long time due to their lack of support or governments.
The first big step in financial transactions field was represented by the launching of credit cards. With the help of a tiny plastic object, people were able to buy directly from a store or get money from an ATM. Subsequent, they could pay online orders from Amazon or Ebay and have their orders delivered at home.
Everybody has got accustomed to that very easily, so why wouldn’t we get accustomed to virtual currencies which is considered another step in the financial world.
The ones that see a future in Blockchain might be looking at the bright side only, seeing it as a descentralized system with no fees or any sort of control.
To perceive the differences between usual transactions and the encryption ones, MarketWatch has taken the UBER case as an example. In this moment, it is a traditional system, paid with a credit card inside an application and the platform takes a part of the driver’s earnings .An Uber based on blockchain technology would imply the same service, but different transaction. The transaction would occur between the client and driver through special coins.
Blockchain technology was launched as an utility environment of the cryptocurrencies and as a mean of storing and exchanges the coins.
At the moment, Visa is handling up to 60,000 transactions per second, Bitcoin’s maximum transaction number per second was 7. That is an enormous difference if we were to look at the system and energy. For those 7 seconds, Bitcoin has consumed 35 times more energy than Visa with those 60,000. These sorts of issues are the main flaws in the encrypted financial world. Also, in usual financial institutions, a lost or forgotten password or PIN can be recovered with additional information from the user or personal documents. In the case of cryptocurrencies, the identification is processed through a code from a device without any secondary path.
If the device where the user has had the transaction key is destroyed or lost, any holdings on it are forever lost.
Some experts are complaining that the blockchain technology is 9 years old and still it hasn’t spread beyond the virtual area.