Blockchain vs. Banks

In contrast to the traditional financial system, blockchain is a multi-utilitarian technology. Aside from financial transactions, the distributed ledger technology (DLT) system is gaining traction in various industries.

However, regarding finance, timestamp technology continues to outpace the popular brick-and-mortar financial system. While banks have set closing times and do not work on weekends, blockchain facilitates financial transactions 24/7, 365 days a year, with no fixed closing hours.

Furthermore, transferring funds with centralized banks can be frustrating. It could take the recipient about 5-10 days to receive the funds for large sums or international transfers. On the other hand, Bitcoin transfers are faster. The average BTC transaction can be completed in about 3-10 minutes, regardless of the recipient’s location.

Blockchain solutions are significantly less expensive than traditional banks due to the elimination of a middleman. A Bitcoin transaction can range from $0 to $50, depending on the network load when the transaction is completed. Users can also choose how much they will pay in transaction fees. Banks charge customers enormous fees for using their services. This includes overdraft fees, returns, inactivity and even fees for using an automated teller machine (ATM) that’s out of service.

Other differences include the lack of personal information required, the lack of transaction sanctions, privacy, and the fact that all you need to get started is a Bitcoin, a mobile phone, and an internet connection.