Over the last few years, blockchain technology has emerged as a powerful new tool. This technology assigns a long string of numbers to information using powerful algorithms. Its main benefit is to 100% securely share and transact personal information over the Internet with friends, family or strangers. So far, blockchain technology has primarily been used to power the popular digital currency bitcoin. However, a host of new companies have emerged, some in the fintech space. One of the most interesting new solutions are ways to send cash with the block chain technology.
The basic idea is simple. Instead of using a standard server and bank database to store information about your cash, the data is held in an online account using blockchain information. Instead of sending money via Western Union or bank wire transfer, people could simply use blockchain technology to make the transfer to friends and family anywhere in the world.
There are two key benefits of using the technology. The first is that it is highly secure. Each security is affixed with a unique block chain value. Similarly, your account can confirm the reception of cash with 100% reliability for this reason.
Secondly, transaction fees are dramatically lower. They can virtually eliminate the Western Union or other money transfer services. The industry in the US is worth tens of billions of dollars a year. Using this technology, most of those fees would not have to be paid. This means that more people would be able to transfer funds much easier than they used to be able to.
Most companies employing block chain technology still prefer to use bitcoin. However, companies focusing on real dollars are also quickly emerging.
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