Why is Blockchain so safe?

Why is Blockchain so safe?

Transparency

Blockchains are pretty safe and they provide a lot of privacy benefits that contemporary systems fail at. Here’s where the idea of a cryptocurrency comes in. Today, conventional banks do not reveal a lot of information in terms of how they operate. Sometimes, you just need to trust your bank that the funds have been transferred.

This is unfortunate for the consumer since it’s his money and he can’t see where it is at this moment. If there were block chains in banks, you can access all records to make sure that your money is safe. Since it’s run on a blockchain, the consumer can also verify all the transactions that he completed. In block chains, there’s always certainty and full transparency because you can access all of the previous blocks.

Eliminates Fraud and Theft

A blockchain is a public ledger. It’s like you could open up a book and check exactly how much money you sent to someone. The past information that block chains in banks bring is one of the best features. Since a blockchain is essentially a chain of blocks, a block being a group of transactions, you can go back and monitor what you did.

Unfortunately, you can’t change the past, because the block has been solved and attached cryptographically to the next. It’s practically impossible to go back and change transactions. Thus, if there are more block chains in banks, there will be a degree of safety attached to the shift.

Since every transaction is recorded and can’t be changed, fraud and theft can be very easily monitored. That makes for a safer banking environment where people have full transparency.

 

Smart Contracts

Smart contracts are essentially electronic contracts that take place and are registered on a blockchain. The potential in smart contracts is boundless. Imagine you could create a smart contract for someone willing to exchange currency with you online. If you wish to buy a token or Bitcoin, you could use smart contracts to make sure that the exchange is done.

Usually, in this situation, an escrow service would be used. However, it’s another hassle to deal with escrow services when there’s an issue with an exchange. Smart Contracts eliminate the need for a third party. The smart contracts are electronically programmed to take place, thus they’re secure and can’t be tampered with. So, you can be 100% sure that you can exchange currency or bitcoins online.

Using block chains, you’d be able to use smart contracts to concretize monthly pays and salaries. This brings a degree of trust to employees and owners of businesses.

What’s best about smart contracts though is that they need no human interaction to draw up. Usually, a contract can require legal assistance, which is expensive and time-consuming. Using smart contracts can essentially eliminate the cost and time needed to draw up a real life contract.

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About Article Author

Martina Kelowsky
Martina Kelowsky

Currently working on her Master Degree in Economics & Computer Science she lives in Russia. She is a Bitcoin Enthusiast since 2013 and Investor in various ICO since 2014. She aims to democratize a future where money is decentralized and transaction anonymous.

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