Centralized Crypto exchanges go against the very ethos of blockchain

16 Aug

There are the majority of currency investors that depends widely on centralized crypto exchange for the transaction purpose.

It has come up as a vital addition of the blockchain app development services that have a tendency to ensure that online platforms can easily carry on with exchanges. This makes it easy to sell and buy cryptocurrency that helps in working up with holdings in a centralized manner. However, there are instances where the decentralization can occur due to some misleading.

Working of Centralized Exchange

The centralized exchange is one of the major additions to aggregate sellers and buyers. This has a tendency to work on up in the mode that allows direct trading of currency in the form of crypto with others. In addition to this, the overall trade is matched up with executing and partners on the other end. Hence, one can easily continue to trade with others in secure mode with the help of the blockchain app development company. But there is an intermediary that manage all the things and helps in a transaction.

One of the topmost examples of centralized exchange is Bitcoins that gives it a secure mode to workaround. They depend widely on the third party that might be insecure and you can’t put your trust in everything. There can be instances when the system can be hacked into. However, the Mobile Application development company has come up with the major security measure but they are not enough.

Blockchain helps in maintaining data integrity, secure data from hackers and make sure that users can access their data anytime. So, now with these proficiencies, it won’t be surprising to see Blockchain filaments in fintech world. Let’s see how it is even possible.

1. Cyber Fraudulent Cases

There is no doubt that banks, stocks exchange, and money transfer services are the main targets of cyber fraud cases. This is due to the centralized database that makes it an easy target for hackers that can hack into any system and destroy their entire database. This single reason makes it easy for security breach resulting in losing data.

But what if I tell you that you can be away from all the cybercrime? Yes, you can easily reduce fraud cases by using Blockchain technology due to its highly secure integrity. No matter how your data is stored or Custom Mobile App Development work on advancement, decentralized, blocks or timestamps, Blockchain can be a ledger for you. It will create a chain connecting every block through a link that cannot be forged. It will require many steps to breach the security system that reduces the chance of any financial damage.

Read the Article:- Everything You Want To Know About Blockchain Technology

2. Faster And Secure Payment

Not only Blockchain provide proper security but also helps in upgrading the traditional mode of payment. Now, you can easily process payment between clients or banks without worrying about any forging. There are many intermediaries involved in the transactions that need up to 24 hours to complete money processing between different banks. But, cross-border payment method makes it easy for users and is not time-consuming. It is making your life easier and more efficient with blockchain app development services.

Many real-time fintech applications are using Blockchain as their fundamental technology. Over the last few years, Blockchain has become the main source to grow. Considering the benefits that this technology offers makes it the best choice for fintech applications.

3. Smart contract

We have heard a lot about Blockchain technology. Almost everyone knows the importance of Blockchain. But what would you do if I tell you that it can replace lawyers? You might be shocked and claim it to be fake. Well, here is the catch, it is all possible due to the smart contract and Mobile Application development company (also known as Blockchain contract, self-executing contract, or digital contract).

Before getting down into more details, let us have a brief about Blockchain. It is the most efficient technology that can save your time, conflicts and money (no need to pay middleman now). It is like a devolved system between different parties. Not only this, but Blockchain is undeniably cheaper and faster technology that provides maximum security to outmoded systems. Even the Government and banks are opting this amazing technology.

A legal scholar and cryptographer, Nick Szabo claimed that we can use this technology as a smart contract. Now, it is easy to replicate the contract on the system by converting it to binary codes and store it. You can access them later on with the network of the computer to run the Blockchain. The Custom Mobile App Development work in the direction but it is not always reliable.

Conclusion

Cryptocurrencies are growing technology, especially after bitcoin was launched giving blockchain app development company a new era to live in. There are some who can’t control their curious nature and end up searching a lot about bitcoin. They would have discovered the role of Blockchain in securing the transactions.

Each and every industry is affected by the development of Blockchain, whether it is retailing market or healthcare sector, fintech is not behind either. But there is no doubt that bitcoin is taking up the world by winning over fintech.