Blockchain works very differently than a traditional bank as it is 100% decentralized and relies on thousands of computers to verify its transactions. This means that it works 24/7 every day of the year. The most important advantage of blockchain in Bitcoin is its transparency as it acts like a public network for every transaction that takes place on the network. This creates trust and security in the user as the data is stored in a chain that is accessible to everyone.
Other differences are speed of transactions is just 15 minutes which can reach up to an hour, depending on the congestion present in the network. Unlike card payments and cheque deposits can take between 24 and 72 hours.
Bitcoin’s blockchain has various fees that typically range from $0 to $50. While the fee is not related to the amount transferred, but to the network conditions at that time and the data size of the transaction. Because a block can only contain 1 megabyte of data, the number of transactions included in each block is limited.
Another difference is in the way transactions are made. While blockchain allows anyone with an internet connection to make a transfer, while banks need an account and it can be done through a computer or mobile.
Using a blockchain network has many advantages such as the accuracy of the blockchain as transactions are confirmed by thousands of computers. This eliminates all human participation in verification, which means that there are fewer human errors, as well as more accurate recording of information.
But what if one of the computers on the network makes a computational error? The error will only be in one copy of the blockchain. To create a problem, it must be in 51% of the network which is very unlikely.
Another advantage is that the blockchain eliminates the need for third-party verification. As a result, any member of the network can check and verify the blockchain at any time.
The blockchain’s data is decentralized, which means that it is not stored in a central location, but is copied and disseminated on a vast network of computers. Which makes it very difficult for anyone to breach the data.
Finally, a key part of the blockchain is that, although anyone with an internet connection can view the network’s transaction history and access details about the transactions, no one can access identifying information about the users making the transactions.