Bill Gates, Microsoft Inc. founder once said that banking services are vital, but banks are not. This statement is becoming a reality today to many people today because it is now possible to send money, borrow, and do almost every banking service using blockchain without going to a bank. Welcome to the future of finance!
For years, the traditional banking system was regarded as the only way to access banking services, but blockchain technology has created a new way for people to operate on a peer-to-peer basis. Using decentralized public ledgers and crypto coin, you have total control over your finances. Simply put: you are your own bank!
Keep reading as we dig deeper to demonstrate how blockchain and cryptos work. We will also highlight a few services that you can use through blockchain.
What is Blockchain?
A blockchain is a decentralized public ledger that is shared between the computers in the same network. The database is used to store information in a way that is impossible to edit or corrupt. The most important thing about blockchain systems is that they do not work with a centralized authority. It is the complete opposite of how banks operate today.
When a user initiates a transaction, there is no cashier or manager to process it. Instead, the nodes or computers on the blockchain network pick up the transaction and validate the information. The process of validation can take place through crypto mining (users validate transactions for a reward with new coins) or staking (people validate transactions to get rewarded with part of the transaction fees).
Although the initial goal of the pioneer blockchain, Bitcoin, was to only offer a system for sending funds without relying on banks, the use cases have now grown so much. Today, transactions can be storage of data, processing medical information, or tracking down products through the supply chain.
How are Cryptos and Blockchain Related?
Cryptocurrencies and blockchains are two inseparable components. Let’s take a closer look. A blockchain is a decentralized platform, or a public ledger for storing information about transactions taking place in the network. For example, transactions about people sending value through the network or taking loans are all captured and added there. When running a transaction on the blockchain, users are required to pay a fee, which must be in the native coins referred to as cryptocurrencies.
No matter the nature of transactions, you must have some native coins to meet the transaction fees. Remember that these coins only exist in the native blockchains. Therefore, what you get after buying some cryptos is a string of codes that indicate ownership.
Remember that you need to have a crypto wallet for storing your coins. The wallet also facilitates sending and receiving the coins when running transactions.
Staking on Blockchain Networks
As we indicated earlier, blockchain was designed to offer almost all the services you get from banks today. For example, you can use them to send value, trade on the markets, and buy products online. Another important service offered on the blockchain network is crypto staking. This involves committing your coins to help validate transactions on the blockchain network. In return, you are rewarded with part of the transaction fees from people using the blockchain.
Staking is regarded as one of the best ways of generating passive income on cryptos. Remember that unlike other investments, such as stocks and property, you are not required to sell cryptos in staking. So, once you have selected the preferred staking period and picked the right decentralized DeFi (platform), all you do is wait. Then, the coins plus rewards will be returned to your wallet at the close of the staking period.
Make Passive Returns from hi.com
As you can see, blockchain networks and cryptos are the new kings in the finance industry. hi.com offers you a secure way to buy, sell and convert your crypto coins. When you create a hi account, hi.com credits it with HI as a welcome reward. So, go ahead and convert the HI to BTC, or other coins.
hi goes several steps ahead to reward you for every referral. After registering an account, it also automatically creates your hi Wallet that you can use to make up to 20% in interest. Visit Hi on Telegram and WhatsApp, type “hi” on the chat and follow the pop-up menu.
