The importance of cryptocurrencies in financial transactions.
New digital currencies are appearing every day, with one or more unique characteristics in their category, making them versatile to use for different business purposes for large and small companies.
Thanks to their rising popularity, they brought forward a change in the landscape of the world’s financial system, becoming a very important alternative for business owners, investors, and other participants in global transactions.
Cryptocurrencies run on blockchain technology, making them nearly impossible to be vulnerable to hack.
Each one has its own rules to prevent any misuse of them.
They were created with the ideal of being a new financing option in the world.
Their decentralized nature differentiates them from conventional banks, allowing for immediate transactions across thousands of computers (verifying and participating to the network’s security each step of the way) with a nearly zero commission fees for many of them.
This new monetary system, not dependent on any bank or material currency (whether metal or paper) expanded worldwide and became the novel business model for millions of people in a matter of years.
How did they become so important?
Many academics, professors, investors, and bankers have wondered how cryptocurrencies went from a utopic idea of money to becoming a viable alternative financial system for small countries.
They even as far as being seriously considered for a replacement of the monetary system of major world powers to save their broken and often corrupted financial systems. Every country is waking up to the potential of cryptocurrency.
The high versatility of cryptocurrencies along with its decentralization allows anyone to participate in the network through a simple wallet.
The customer verification process improves daily and takes as little as 15 minutes with the use of our smartphones with facial recognition technology.
The combination of these factors, along with many others, contributed to the evolution of how transactions are made throughout the world. Cryptocurrencies are immutable, permissionless, decentralized, international, and cheap.
It makes for a very powerful monetary system, independent of any central point of failure or corruption like banks, governments, institutions, and individuals.
For the best part, cryptocurrencies are built to be deflationary. Not only do they retain their value, but the value keeps increasing over time as the supply reduces.
Several personalities of the financial world affirm that cryptocurrencies are a safe and efficient alternative for the exchange of goods or services, having a positive impact on the world’s economy.
The Libraprotocol Team.
Written by Dionel Alvarado (Spanish Copywriter)
Translated by Grace D (English Copywriter)