One of the most potent penalties of technological growth and reciprocally digitization is the improvement of digital money from paper money. Although digital online payment solutions in the likes of net banking had reduced the participation of banks to some extent in the arena of conducting transactions, traditional techniques of payment took a significant hit on the growth of cryptocurrencies. Centralized payment gateways which were a significant part of net banking are no longer recognized as a must part of the entire payment ecosystem in the case of crypto-based payments. The transaction time, as a result, was reduced significantly.
Netbanking, which was seen as a step forward when first introduced, was not free of problems and led to multiple instances of frauds and identity thefts by network hackers. To understand the functioning of cryptocurrencies, one has to take a look at multiple areas of improvement which were visible in net banking.
Problems of online banking systems:
Despite the multiple conveniences of online banking systems offered, such as removing the requirements to travel to the physical location of banks regarding transactions of high value, risks were also in plenty. Slow transactions, faced recurring time out sessions, high remittance fees, and murky payments were some of the common complaints. Additionally, the participation of a third party enhanced the chances of malafide usage of personal information.
Advantages of Cryptocurrency
The numerous disadvantages of e-banking and credit and debit cards – primarily the need to share several personal details – minimized the trust consumers had put in the system. The claim for a secure and efficient solution to internet banking led to the recognition of Bitcoin when it first emerged in the scene in the year 2009, introduced by Satoshi Nakamoto. It presented an affordable, swift, and transparent platform for doing online transactions which also expanded the window of trust.
Blockchain technology has evolved over the last couple of years seeing a multitude of cryptos making steady inroads into the market. The blockchain service providers are shaking hands with this wave of virtual currency or cryptocurrency.
Cryptocurrencies can be explained as digital tokens that have financial status and can replace digital currencies for making online transfers, remittances, business, and other functionalities. Cryptocurrencies were literally introduced to seize the market of digital currencies.
Some of the reasons why crypto and distributed ledger stands apart are
- Decentralized platform:
- Highly secure:
- Easy and quick transaction:
- Low transaction fee:
- Increases banking mobility: