Why transparency is needed in finance

Transparency in Finance

Have you ever wondered why so many people can’t stand traditional banks?

Is it the hidden charges? 

The maintenance fees?

The lack of security?

The slow process times? 

(Hint; it’s all of the above)

Let’s face it – banks have a complete lack of transparency. And it’s a BIG problem. 

But now, with the rise of blockchain and cryptocurrencies, you no longer need to lose your money (and sanity) banking with a traditional bank.

Simply put, transparency is needed in finance – and blockchain is leading the way like a shiny unicorn heroically charging into battle. 

But despite the fact that the global crypto market is valued at over 1.4 trillion USD, most people have no idea how it actually works.

Well, here at hi.com, we want to demystify blockchain and cryptocurrency, so you can understand how it works and why it’s important, so you can get a piece of that shiny unicorn yourself 🦄

 

Earn hi Dollars here

 

What is a blockchain?

While cryptocurrencies like Bitcoin and Ethereum are the stars of the show, blockchain is the behind-the-scenes director that is making the entire production possible. 

Simply put, blockchain is a database system. Data is arranged in blocks and then chained chronologically to each other to form a “blockchain”.

(Blocks + chained = blockchain!)

This technology is incredibly powerful, but it’s primary selling point is its security. 

Once a block is chained to another block, it is almost impossible for it to be hacked. This is because it requires the majority of users (51%) to approve the new “meddled” data for it to be added to the block. 

Ultimately this is bad news for hackers but amazing news for your finances!

 

Why is blockchain better than traditional banking?

There are many reasons why blockchain is the technology of the future. Compared to traditional banking technology and database structures, blockchains offers superior advantages. 

Let’s have a look at a few reasons why we – and so many others – think blockchain will completely revolutionize finance around the world. 

 

#1 – The BlockChain Architecture

As mentioned above, blockchain forms a chain of data blocks that mainly contain transactional data for cryptocurrencies. The way that this is kept secure is through something called a ‘consensus mechanism’.

This means that a consensus is required to validate data which makes it extremely hard for hackers to change transactions because to do that, they would need the consensus of at least 51% of servers. This decentralized architecture makes blockchains extremely safe & secure.

In contrast, a traditional database (like a bank) has a centralized system of control, and this means that there is one access point that can be used to hack into the system. This makes the data vulnerable to criminal activity.

 

Scoreboard – Blockchain 1, Traditional banks 0

 

#2 – Data Storage and Handling

Traditional databases work on the CRUD principles: Create, Read, Update, Delete. Any of these processes can be applied to the data stored, and data can easily be updated by a central authority.

This makes it easy for a rogue administrator to tamper with sensitive information and hackers need only one access point to steal data. Take the Cambridge Analytica scandal, for example, in which the data of 87 million users was breached – with Facebook as the central authority for the users’ data.

Blockchain, on the other hand, supports only two operations, namely, Read and Write. This means that once data has been read by the server and verified or written to a block, it cannot be updated until a consensus is reached by users. This provides a much more stringent level of security for blockchain users and keeps data safe from criminals.

 

Scoreboard – Blockchain 2, Traditional banks 0

 

#3 – Transparency

Transparency in the process is also a key element of blockchain technology. With a network like cryptocurrency, it is essential that the public can trust the process. Blockchain allows anyone with the right equipment to verify data. And data once is stored, as mentioned, cannot be corrupted in any way.

With centralized data systems, data can be verified and controlled by a central authority only. Users can request to view the data but cannot verify it. In contrast, the integrity provided by blockchains is quickly making them the most adopted database technology because any data changes require notifying and seeking verification from a majority of users.

 

Scoreboard – Blockchain 3, Traditional banks 0

 

#4 – Greater Efficiency

Did you know that bank transfers take an average of 3 days to complete? Three. Freaking. Days.

In 2021, that might as well be a lifetime. 

But in contrast, transactions made via blockchain happen stupid fast, sometimes in seconds! That’s because blockchains are decentralized, so there is no need for any middlemen to verify transactions.

Basically, if transaction speeds were a race, blockchain would be Usain Bolt, and traditional banks would be your hungover roommate at 8am in the morning. 

 

Scoreboard – Blockchain 4, Traditional banks 0

 

#5 – Increased Traceability

In blockchains, data blocks are given a unique identification code that incorporates the data within that block. The code for each block also contains information about the code of the block before it in the chain. 

This not only protects from fraud but also provides a traceable system in which assets that are traded can be verified to see exactly where they are coming from in the “chain” of data. This is especially useful for cryptocurrency transactions and in the supply chain.

 

Scoreboard Game, set, match. Blockchain wins!

 

But wait…What is hi?

hi is the first of its kind chat-based cryptocurrency platform that prioritizes making money for you, not off you. The best thing about hi is that you don’t need to download a new app; all you need to do is use one of your favorite existing chat apps, such as Telegram or WhatsApp, and type “hi” in the chat box. 

hi for Telegram

hi for WhatsApp

hi for Web App

Once you are in the app, a menu will prompt you to take different actions. You can win daily hi Dollars, manage your crypto and USD,GBP accounts, or access global payment services. Sounds simple, doesn’t it? And the cherry on top is that hi uses blockchain technology to provide you with ultimate security and transparency.

If you sign up as an early user, you will get free hi Dollars daily, which you can use to access digital services, buy other cryptos, and even fiat money!

Learn more about us, our how hi Dollars work. 

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