It is slightly more than 24 years since the first blockchain and crypto coin, Bitcoin, was released. A rollercoaster period characterized by misinformation for the public and threat of closure by authorities, but none of these could stop blockchain technology from becoming the bottom-line in most sectors today.
In the banking system, supply chain, and e-commerce, blockchain is helping to redefine every operation. The technology has a lot of benefits for users, such as the capability to send funds instantly at lower rates.
Now, even the governments and central banks that had initially considered blockchain as a threat are embracing it. Recently, El Salvador made Bitcoin (BTC) part of its legal tender. If you are new to blockchain technology, check out the benefits to anticipate.
Awesome Opportunity for Making Passive Income
This is probably the most notable benefit of using blockchain technology. Unlike in a bank where your money stays idle or generates very little interest, blockchain can deliver impressive returns. The most notable way of making passive income is through staking.
Staking is the process of committing your proof of stake (POS) coins to their respective native networks so that they can help to confirm transactions and secure the network. In return, you are rewarded with a section of the transaction fees that people pay for processing their transactions. So, how exactly do you stake?
- Acquire an appropriate crypto wallet to hold the coins you buy. The wallet will also be the repository of the coins after the staking period.
- Buy proof of stake (POS) crypto coins. Good examples include ETH and ADA, and you can buy them from com.
- Once you have the coins in your wallet, select a good decentralized platform (DeFi) that offers staking services. Then, send your coins so that they can be pooled alongside others to help with processing transactions on the network.
- Wait for the preferred staking period to end so that your coins are returned to your wallet. Note that the coins will be more because they come with additional rewards. If you selected a longer period, this could be an awesome path for generating regular passive income.
Blockchain-Based DeFi Platforms Offer Loans with No Background Checks
Have you ever made a loan application from a bank? Banks ask for so many documents and assessments before the money can be released to you. In most cases, you will be required to provide bank statements for several years, a complete credit score report, and proof of income for your financial position to be gauged.
Even with the multiple assessments, you are not assured the loan application will be approved. Now, blockchain has opened new avenues for people to access loans faster and more conveniently. Using DeFi platforms, all that you need to get a loan is crypto coins. There is no background check through credit reports or personal reviews through bank statements.
DeFi platforms use smart contracts that execute loan agreements automatically. If you commit some Bitcoins as collateral and get a loan, the agreement will capture the details, such as the amount to be repaid and when. If you repay the loan as agreed, the coins are returned to your wallet by the smart contract. However, failing to repay will result in the loss of your coins.
Provides New Ways of Making Payments at Lower Charges
The primary reasons why Bitcoin was created were making transactions faster and cheaper. When it comes to costs, most centralized financial organizations have high transaction charges to optimize profits. They also have to pay staff, rent, and licenses for operations. When all the costs are passed to the client, sending money becomes a very expensive undertaking.
Instead of sticking with the expensive institutions, why not shift to the cheaper method of using blockchains and cryptocurrencies. Blockchain networks use nodes spread on their networks to confirm transactions, implying they do not have overheads related to licensure, paying staff, and marketing.
Instead, all transactions are confirmed by users spread on the network. These can be miners or stakers, and they only charge a very small amount. Remember that apart from cutting down costs of transactions, they are completed within seconds or minutes.
Other top benefits that you might want to know include help with asset protection and the possibility of making high returns when the price of selected coins goes up. Therefore, you should not be left behind as others join the new and high-potential blockchain.
Remember to work with hi.com for any help that you might want. They are the leaders of feeless financial services, and you can count on them to send, save, earn, and convert with ease. They also have the expertise, goodwill, and the capacity to guide you when making the initial steps in the crypto world. Why limit yourself to the conventional banking and investment systems when higher returns wait through blockchain technology?