Blockchain vs. Banks

FILE PHOTO: Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Bank and decentralized blockchains are very different. To see how a bank differs from a blockchain, let’s compare the banking system to the implementation of a blockchain in a bitcoin.

FeatureBanksBitcoin
Hours openOrdinary banks are open on Saturdays from 9 a.m. to 5 p.m. Some banks are open on weekends, but their opening hours are limited. All banks are closed on public holidays.There is no set clock. Open 24/7, 365 days a year.
Transaction Fees• Card payment: This fee is specific to the card and is not paid directly by the user. Payment systems are paid to the commissions through the stores and are usually charged for each transaction. The effect of this fee can sometimes lead to an increase in the price of goods and services. cks Check: Depending on your bank, it can cost anywhere from $ 1 to 30 30. CH ACH: ACH transfers can cost up to پر 3 when sent to external accounts. ire wire transfer: Domestic wire transfer can cost up to $ 25. Outgoing international bank transfers can cost up to. 45.Bitcoin has a variable transaction fee that is set by miners and consumers. The fee can range from $ 0 to $ 50, but customers can decide how much they are willing to pay. This creates an open market where if the user charges a very low fee, their transaction cannot be processed.
Transaction Speed• Card payment: 24-48 hours • Check: 24-72 hours for payment • ACH: 24-48 hours • Bank transfer: Within 24 hours except international * Usually weekends and holidays on bank transfer Is not processedDepending on the network congestion, bitcoin transactions can take anywhere from 15 minutes to an hour.
Know Your Customer RulesKnow your customer needs (KYC) for bank accounts and other banking products. This means that banks are required by law to register user identification information before opening an account.Anyone or anything can participate in the Bitcoin Network without anonymity. Theoretically, even artificial intelligence could play a role.
Ease of TransfersThere are minimum requirements for official identification, bank account, and mobile phone digital transfer.Internet connection and a mobile phone are the minimum requirements.
PrivacyBank account information is stored on the bank’s private servers and belongs to the client. Bank account privacy is limited by how secure the bank’s servers are and to what extent the individual user keeps their information secure. If the bank’s server was compromised, the person will also have an account.The bitcoin can be private as the user wishes. All bitcoins are traced, but it is impossible to determine who owns the bitcoin if it was purchased anonymously. If the bitcoin is purchased on a KYC exchange, then the bitcoin is directly linked to the holder of the KYC exchange account.
SecurityAssuming the user has strong Internet security measures such as secure passwords and two-factor authentication, bank account information is only as secure as the bank’s server containing the user’s account information..The more the bitcoin network grows, the more secure it becomes. The level of security of your bitcoin holder depends entirely on it. For this reason, people are advised to use cold storage for more bitcoins, or any amount to be stored for a longer period of time.
Approved TransactionsBanks reserve the right to refuse transactions for a variety of reasons. Banks also reserve the right to freeze accounts. If your bank’s issue notices for purchases in unusual locations or unusual products, they may be denied.The Bitcoin Network itself does not dictate how Bitcoin is used in any form or shape. Users can transact with bitcoins, even if they seem appropriate, but they must also adhere to the rules of their country or region.
Account SeizuresKYC laws allow governments to easily track people’s bank accounts and seize their assets for a variety of reasons.If the bitcoin is used anonymously, it will be difficult for governments to track it down.

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