Behind every technological advance there is a simple motive - to make life easier. And blockchain is no different. Designed to facilitate complex transactions in a way that is faster, more transparent and more secure, blockchain promises to revolutionize business.
The technology has many applications of course. But it is particularly suited to industries that are, at their heart, adaptive to innovation. And trading is definitely one such industry. Today we will be looking at why we at Sociumtrade believe that blockchain is the future for online trading.
1. Faster transactions
Completing a transaction via traditional trading can be a slow and burdensome process. Why? Well for starters you have to factor in the regulatory requirements that have to be observed. Then there are the intermediaries and brokers that need to be dealt with to clear trades, hold assets and maintain records.
In contrast, Blockchain based transactions operate on a smart contract, allowing them to bypass intermediaries. What’s more, because smart contracts are self-executing, they allow trading workflows to be streamlined.
2. Lower fees
Instead of a centralized hub validating transactions, the decentralized p2p network architecture on which blockchain operates allows users to interact directly with one another across a decentralized network, eliminating the need for middlemen. And all of this has the net result that transaction fees can be reduced drastically.
3. Enhanced security
With their single centralized controlling server, centralized exchanges tend to be extremely attractive targets for hackers. With an increased frequency of malicious hacks undermining both minor and major exchange platforms, and with huge sums being stolen from their users, there are now serious concerns being voiced about the security of centralized exchanges.
Blockchain based decentralized exchanges, meanwhile, are hosted on multiple decentralized servers that are often spread around the world. By switching to a decentralized exchange architecture, users’ funds and data can be kept secure, potentially ruling out any possibility of hacker attack.
4. Greater transparency
The revolution that is Blockchain is underpinned by a simple mission: to bring increased transparency and trust to the market. With Blockchain based exchanges, you can have inbuilt features that allow users to spot any suspicious activity in the network (e.g. operations aimed at pumping and dumping from the same wallet). This greatly reduces the risk of getting scammed. Even better still, as each change in the data in blockchain transactions can be tracked by all participants, there is real transparency in the system.
Blockchain is the natural choice for the future of online trading. It automates transaction processing, protects everyone who participates in the market, and guarantees security and efficient risk management. That is why, here at Sociumtrade, we are early adopters of disruptive Blockchain technology. Our ecosystem will provide our users with the confidence and security they need to reap the maximum benefit from every trade.