Thursday, November 24, 2016

What is block chain finance?

Block chain finance aka FinTech is almost similar to blockchain technology.

Think of it this way, I want to pay you x amount of this y currency but you are in z country. An example is you are in India paying a supplier in Kashmir Pakistan in Rupees (with bundles of 1000 rupee notes) but the other guy only accept Pakistani Rupees. So how do you do, either you send in smuggled notes, thru Hawala or remit in USDollars which will cost you as much as 20% in fees. Now with Indian Rupees not legal tender, you are in a huge mess.

So now in the cyber world, I will send in Bitcoin or thru paypal, but paypal will still eat 2.5% in exchange fees. In crypto world, there are no fees or very little such as 0.00000001 btc aka 1 satoshi for the transfer, which is shared to the pool. What will happen is you broadcast to the world, say Mr Rajah acct x1234567890asfgh send a digital check to Mr Ali acct 0987654321awawqq for 0.0011 btc and with the fee, starting balance  1.0011 ending balance 1.0000 for Mr Rajah and start balance 0 anf ending balance 0.0011 for Mr Ali.

Everyone on the network copies and concur with the transaction and its sealed to the ledger digital block 123456 digistamp 24nov2016.0000.11 with crc check digits xxggaaccexample created by the miners. Once clear and sealed, no reversal.

So this goes on and on.

The need to pay middlemen are less now as everyone has a copy of every transaction of the chain till this time.

It reduces the cheque, wire fees, transfer fees and time taken.
Banks cut the cost drastically.

(end part 1)

16 comments:

  1. This is a Wounderful crypto trading Site, Please Visit. High-tech Digital Asset Exchange

    ReplyDelete
  2. i was home schooled when i was still very young and i have to stay that it is also a great way to educate your kids,, forex broker

    ReplyDelete
  3. Credit is discussed in the following way in the earlier education-methodological manuals of political economy: "Ātrie kredīti

    ReplyDelete
  4. It's nice to learn about mortgage-advice-online.org from a dear friend. Using it since then.

    ReplyDelete
  5. the meaning of finances, as the arrangement of the creation and utilization of assets of money sources on the level of wonder. www.adlist24.com

    ReplyDelete
  6. This comment has been removed by the author.

    ReplyDelete
  7. Giving a specific measure of cash to the borrower for clear reason (however, we meet with the alleged free credits, points and questions of crediting are not designated in the task) vizualize.me/ChuckRobertsStifel

    ReplyDelete
  8. Advances are primarily demanded and received for the confirmation of orders However, these are also used as source of financing the operations necessary to execute the job order. www.fishpawnbrokers.co.uk

    ReplyDelete
  9. Efficient advice - many of the latest systems rely on robo-advice to give people guidance on their finances. This can be a very quick and low-cost option to get useful information on investments, as well as to limit a person's exposure to risk. However, this type of service won't be able to give the most in-depth advice that would come from a professional adviser. coinairdrops

    ReplyDelete
  10. Financial loans with regard to poor credit may be the only option available to individuals with an undesirable credit history. http://www.firstqualityfinance.co.uk

    ReplyDelete
  11. The streamlined service involved in applying for an online auto loans comes from the plethora

    ReplyDelete
  12. Great write-up, I am a big believer in commenting on blogs to inform the blog writers know that they’ve added something worthwhile to the world wide web!. read

    ReplyDelete
  13. Great.This is such awesome content i got to read after lot of time.Its so interesting as well as informative.I am sure everyone who read it got a lot to learn from it. Mini MBA

    ReplyDelete
  14. precisely, you'with reference to definitely clean people simply comment!. Finance

    ReplyDelete
  15. Most of these pay day loans require you to submit post dated checks while borrowing the money from the lending companies or financial institutions Loans Geeks

    ReplyDelete

Do Follow me on Facebook & like us!