TOP10 Differences Between "approved" and "confirmed"

TL;DR:

Traditional financial systems rely on banks to approve and control transactions, often involving delays, fees, and limited control over your money. Decentralized systems like blockchain remove the middleman, giving you full control, faster transactions, and automatic confirmations without interference.

Let's dive into it:

You might think, there is not difference at a first glance, but there is a subtle one.

Got the difference ?

That's a great way to introduce the difference between a traditional financial system and a decentralized financial system based on blockchain technology.

Here’s a simple explanation of the difference between traditional financial systems and decentralized financial systems like blockchain:

Traditional Financial Systems (Banks, Credit Cards, etc.):

• Central Authority: In traditional systems, banks or other institutions act as a middleman. They control and approve all transactions.
• Approval Needed: When you make a payment, the bank checks it, approves it, and then processes it. If they see a problem, they can stop or reverse the transaction.
• Limited Control: The bank holds your money and can freeze your account, delay payments, or charge fees for various services.
• Slower Process: Transactions, especially across countries, can take several days, and you may pay high fees.

Decentralized Financial Systems (Blockchain, Bitcoin, etc.):

• No Central Authority: Instead of a bank, a network of computers (nodes) around the world checks and confirms transactions. No single entity controls it.
• Automatic Confirmation: Transactions are automatically confirmed by the network through a process called consensus. Once confirmed, they cannot be reversed.
• You Control Your Assets: You manage your own money directly through a digital wallet. No one can freeze your funds or stop your transaction.
• Faster and Cheaper: Transactions happen quickly (in minutes) and usually cost less, especially for international transfers.

Traditional: Your bank approves your payments, controls your money, and can delay or stop transactions.

Decentralized: You have full control, transactions are confirmed by a global network, and there's no middleman to delay or block payments.

Some more detailed advantages that highlight why moving towards decentralized financial systems is important, expanding on the core idea of "approved" vs. "confirmed":

Advantages of Decentralized Financial Systems (DeFi):

(TOP10 Differences Between APPROVED and CONFIRMED)

1. Elimination of Central Authority: Traditional: Banks or financial institutions act as gatekeepers, having the final say on transaction approvals. Blockchain: No single entity controls or has authority over the network. Transactions are verified by a decentralized network of participants (nodes), ensuring independence and reducing the risk of bias or censorship.
2. Trustless Transactions: Traditional: You must trust the bank to process and approve your transaction, which involves intermediaries. Blockchain: Transactions are "confirmed" based on consensus algorithms. No intermediaries are required, meaning trust in a third party is replaced by trust in the cryptographic network.
3. Global Access and Inclusion: Traditional: Banks may deny access to financial services or impose limits based on geography, credit history, or other factors. Blockchain: Anyone with internet access can participate, enabling financial inclusion for unbanked or underbanked populations.
4. Transparency and Security: Traditional: Bank transactions are recorded in private ledgers, which are susceptible to fraud, human error, or manipulation. Blockchain: All transactions are recorded on a public ledger that is immutable, transparent, and secure. Once confirmed, data is nearly impossible to alter.
5. Faster Settlements: Traditional: International transfers and approvals can take days, especially during holidays or weekends. Blockchain: Transactions are typically confirmed within minutes (or even seconds, depending on the blockchain), regardless of geography or banking hours.
6. Reduced Fees: Traditional: Banks charge substantial fees for processing, currency conversion, wire transfers, and intermediary services. Blockchain: Transaction fees are usually lower, since intermediaries are cut out of the process, benefiting from peer-to-peer networks.
7. Self-Sovereignty Over Assets: Traditional: You rely on the bank to store and manage your funds, and they can freeze or seize your assets under certain conditions. Blockchain: You have full control over your digital assets via a private key, giving you the freedom to manage, store, and move your wealth without reliance on a central entity.
8. Resistance to Censorship: Traditional: Banks can block, freeze, or reverse transactions at the request of governments or institutions. Blockchain: Transactions, once confirmed on a decentralized ledger, cannot be altered or reversed, making them resistant to censorship or tampering.
9. Innovation and Programmable Money: Traditional: The financial system evolves slowly, with innovation limited by regulatory bodies and legacy infrastructure. Blockchain: Decentralized finance allows for smart contracts and programmable money, enabling the creation of decentralized applications (dApps) that automate financial services like lending, borrowing, and insurance without intermediaries.
10. Protection Against Inflation and Currency Devaluation: Traditional: Central banks can print money or manipulate interest rates, leading to inflation or devaluation of currency. Blockchain: Many cryptocurrencies, like Bitcoin, have a fixed supply or transparent issuance policies, making them a potential hedge against inflation and centralized monetary manipulation.

This list captures why decentralized systems are not only more efficient but also give individuals more control over their financial interactions. By highlighting the difference between "approved" (bank-controlled) and "confirmed" (network-verified), it underscores the empowerment and trust shift that blockchain enables.

How you can benefit from a decentralised financial system:

Soon, we will introduce a decentralized finance platform designed to make managing digital assets easier and more accessible for both individuals and businesses, without relying on traditional banks. It enables users to create and manage multiple wallets, track transactions, and handle finances on a global scale with low costs. Users maintain full control of their assets through decentralized wallets, meaning the platform itself cannot freeze or access your funds.

For businesses, our platform offers corporate wallets with multi-signature functionality, allowing multiple stakeholders to authorize transactions. It also provides tools for portfolio management, real-time cash flow tracking, and tax calculations. One of its unique features is the ability to link to existing wallets like MetaMask or TrustWallet, while giving users flexibility and security.

It also bridges the gap between traditional finance and crypto, offering services like debit cards linked to crypto wallets, enabling users to spend crypto in everyday transactions. This makes it an ideal platform for those who want the flexibility of decentralized finance with the convenience of traditional banking features.

If you want to get a free access to this platform, simply like and type "Interested" in the comments.

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