2. Rise of Blockchain

The Transactional Characteristics of Cryptocurrencies

There are a number of characteristics of cryptocurrency transactions that differ from traditional banking

  • It is anonymous. Although the transaction process is transparent in cryptocurrency exchange, none of the parties can be identified. This has attracted the attention of U.S. federal agencies such as the FBI and the Securities and Exchange Commission (SEC), which are concerned about the potential for money laundering.
  • It is secure. Cryptography ensures that funds are securely locked in the system, and only the owner of a private key to those funds can exchange cryptocurrencies.
  • It is fast and worldwide. The network is global, which means that geographical location is not a barrier to enable a transaction. Transactions only take a few minutes to be mined and confirmed, which makes them much faster than traditional banking mechanisms.
  • It is irreversible. Once a transaction has been confirmed and added to the blockchain, it can’t be reversed. There is no recourse in the event that cryptocurrency is sent in error.
  • It does away with red tape. Permission is not required to use the cryptocurrency exchange system. It is free to download and free to use.

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