Before learning how blockchain simplified online trading, let’s first understand what blockchain is. To begin with, let’s be clear blockchain is not cryptocurrency. And it’s not a programming language. A blockchain is a technology made up of a series of blocks containing digital data chained together and distributed among users present on the Blockchain network.
The Blockchain system isn’t controlled by a central agency, instead, people run the system. The idea behind creating the technology was to host the first-ever cryptocurrency – Bitcoin (BTC). Apart from Bitcoin (BTC), the technology also hosts other cryptocurrencies like Ethereum (ETH).
How Blockchain Simplified Online Trading
Here are a few ways, blockchain technology simplified online trading.
It Doesn’t Promote Third-Party Interference For Trading
Generally, traditional trading requires the involvement of a third-party individual like a bank or government agency. In the case of Blockchain Technology, it doesn’t involve a third-party individual for trading on its network. A person from one part of the world can easily buy or sell cryptocurrency from/to another person residing in the other part of the world without the help of a third-party individual. This way people who are interested in trading can trade the way they want.
The Technology Makes It Difficult To Hack Cryptocurrencies
Traditionally, trading through a third-party individual poses risks like hacking. Meanwhile, Blockchain Technology makes it difficult to hack cryptocurrencies because the data on the network is encrypted by cryptographic encryption.
Trading Can Be Done Without Revealing Identities
In traditional trading, both the trading partners require revealing their identities. However, in Blockchain trading, there is no requirement to show the identity for trading with someone. It can be done by revealing the wallet address.
Blockchain trading has become popular among traders due to its various advantages that traditional trading lacks. This article showcases a few ways Blockchain technology simplified online trading that benefits traders.