—TehcRound does not recommend or endorse any financial, investment, payment or gambling advice. All articles are purely informational—
We’re making progress. Before, the questions surrounding cryptocurrency were whether it was a bubble or real money. Now that we have successfully passed that phase, people have begun to wonder if it’s safer than fiat currency, in this case, for use in online transactions.
It’s a straightforward question, and the answer is a steady, sturdy yes. How do we know? For starters, a new industry has been born from the use of cryptocurrency to settle transactions in and out of the system. It’s a subsector of online gaming called crypto casinos.
While still relatively new, it already has a global valuation of a quarter of a billion dollars, all processed in cryptocurrency, most commonly Bitcoin. These Bitcoin casino sites have become the rave not just because cryptocurrency affords security over its fiat counterparts but because the transactions are processed faster and much cheaper, offering users a tonne of benefits, anonymity being chief of them.
So, if these anonymous casinos can trust cryptocurrency with $250 million of their money, ordering a brand new television set off the internet using cryptocurrency is certainly within the realms of possibility.
It’s All In The Blockchain
Talk of crypto, and you must mention the blockchain. Cryptocurrency and the blockchain are often advertised like two peas in a pod, but that’s not quite accurate. An accurate representation will be the pod being the blockchain and the peas in it being all the different processes that rely on the blockchain cryptocurrency being one of them, Non-fungible tokens (NFT) being another.
The blockchain is what can at times guarantee the security on offer when you use cryptocurrency and it does so with the following processes:
Anonymity
One of the reasons credit card fraud statistics are ever on the rise is because as much as they offer some protection against theft and fraud, you still have to enter your credit card information online to use it.
Worrying about your money being carted away is only half the struggle. With clever reverse and social engineering, hackers can find out much more about your card, including personal information like your address and mobile number, which you probably filled in when applying for the card.
With cryptocurrency, kiss those worries goodbye. Especially if you are using a decentralised exchange, you do not need to share any of your information to create an account. You’re issued a set of words that make up your secret phrase, which you can use to access your crypto account. This way, nothing ties you back to the transactions you complete using cryptocurrency.
If you want to go ghost mode on the internet and take your anonymity up another notch, you can consider pairing it with a quality VPN service. Choosing your VPN service is important, as it can undo all the good privacy work you have done in an instant.
Transparency
If you think this much anonymity would translate to secrecy and shady dealings, you’ll be wrong. This misconception makes people shy away from using cryptocurrency; they are often misled into thinking it’s only perfect for criminal-minded people, and that can’t be any farther from the truth.
The simplest way to imagine the blockchain is a ledger where all the transactions on the blockchain are recorded, so while the transactions are not recorded in your name, they record your wallet address. This is why these transactions are more accurately pseudonymous rather than anonymous.
Everyone can see what’s happening on the blockchain; they just don’t know who’s making it happen unless you’re a cryptocurrency whale and people have investigated your transactions and figured out your crypto address.
Decentralisation
Perhaps the biggest advantage over fiat cryptocurrency is the decentralised nature of the blockchain. Some will even say it is the very reason it exists, as decentralisation was one of the key mentions in Satoshi’s Bitcoin whitepaper when cryptocurrency was anonymously ushered into our world.
Decentralisation here describes how the system is not under the control of any one body or entity. Nobody is capable of making unilateral decisions regarding the blockchain, unlike traditional financial establishments that are privately owned or run by a board.
The power to make unilateral decisions can affect your financial holdings with little to nothing you can do about it. These can take the form of an increase in charges or fees for transactions completed on their network.
Immutability
The blockchain’s decentralisation and transparent nature combine to make it immutable. This means the information on the blockchain can not be changed or tampered with. As soon as a block has been added to the blockchain, the information recorded is guaranteed to stay intact.
It does so using hashing technology, with the SHA-2 and SHA-256 being popular hashing functions. Once the hashing process is completed, it can not be reverse-engineered to provide the input data, and as a result, the input data can not be manipulated.
—TehcRound does not recommend or endorse any financial, investment, payment or gambling advice. All articles are purely informational—
