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Before the existence of cryptocurrency, traditional remittance is usually done through a middleman. The role of the middleman is to connect the gap between sender and receiver for transactions to be done. However, the presence of a middleman brings high fees and slower transactions. Due to the high transaction fees, a chunk of your asset can get taken away because of the need to pay for fees.
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Currently, there are many options that you can choose from, such as Bitcoin, Litecoin and Ethereum among others. Bitcoin was created by the person behind the pseudonym Satoshi Nakamoto in Inthe ledger was released and the first blockchain database was created. It solved the problem of double-spending in online remittances through the invention of a peer-to-peer network. Since then, Bitcoin has become the most used and known cryptocurrency in the world.
Cryptocurrency does sound intimidating, but you can easily use it once you know the basics of the process. This transaction will have to go through peer-to-peer in the database. Each and every transaction must be updated to the database. Fiat currency refers to the local currency available in every country and is controlled by the government. In a centralized network, all records of accounts and balances are managed by the central server.
However, the problem with this is that it results in double-spending. Now, that there is the presence of Bitcoin. The cryptocurrency has its own exclusive network that keeps track of transaction records from peer to peer. Each peer of the network should have similar records of information for future purposes of verifying transactions. In Bitcoin, users will have to pay little to nothing when it comes to transaction fees. It is sure to be lower compared to traditional online remittance.
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On the other hand, you should keep in mind that the use of third-party apps to manage your e-wallet may cost other fees. Bitcoin features high levels of privacy and security of the database. This is to prevent crimes such as fraud and identity theft from happening. The network uses advanced security to protect information of users and the transactions made through the blockchain.
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Bitcoin was launched in and its value has increased rapidly since then. The price of a Bitcoin in was at ¥ Currently, one Bitcoin is equivalent to over ¥1 million.
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