There is no denying the impact the internet and technological advancements have had on our lives over the last 20 years, and especially the last 10. Today, we live in an online world where we can talk to our friends and family in an instant via video chat, share pictures, music and so much more.
We can also go online to buy our weekly groceries clothes, tech, books, anything you can imagine and get them delivered right to our doors. Not forgetting the wealth of news, media and knowledge that is just a few taps away.
This instant access to knowledge, goods and services has even gone into the realm of love. Now it is easier than ever to meet new people, set up dates and maybe even find the love of your life on apps like Tinder.
However, the world of money and banking has not sped up to anywhere near the same extent. Let’s find out why, and what we can do to change that.
The time before cryptocurrency
Before Bitcoin and other cryptos hit the scene less than a decade ago (It seems hard to believe now that Bitcoin has only been around since 2009) all spending and money transfers – outside of cash transactions – were done through the current banking system.
If you wanted to send money to someone in another country, or even the other side of the world, it could take 5 business days or more to reach its intended recipient. Not only was this a very slow process, but it was also a very expensive one. Most of the major high street banks will charge around 5%. This means if you are sending $10,000, around $500 of that is going to the bank.
This arrangement was highly profitable for the banks, as they were the only option people had. Businesses paid the price in high fees and slow transaction times. This not only meant that business deals and payments took a long time, but products and services arrived more slowly to market. And by the time these products reached us – the consumers – they were more expensive as a result. And when we as individuals wanted to send money to friends and relatives or to make large payments (for example for a car, home deposit, etc), we were also stung by these high fees and slow transaction times.
Bank transfers are the same
Roll forward to today, and bank transfers are not much different in time and cost than they were two decades ago. If you are sending money to the same bank in the same country you can expect a same day or even a near instant payment. But the minute you start to send money from one bank to another the times quickly increase to hours or even days. We all know the feeling of payday, and waiting (and hoping) on Friday afternoon to get paid. Only to receive it on Monday, even though the accountant already said it had been paid on Friday.
The slow speed and high costs of these payments just don’t match modern day life. Where high speed, low cost and convenience rule supreme.
What we all want
Everything is just a click away for us today. We can chat with friends online in an instant, get answers to questions in a couple of seconds and buy whatever we like online in minutes. But the last piece of this jigsaw is still missing, lightning fast and cheap international banking. We want to be able to send money anywhere in the world at any time and have it arrive in an instant. If you are an international trader, you cannot wait days to receive money. Stock prices could change, you may have perishable stock that will go bad if it is not shipped quickly. And for us as individuals, if we send money to a friend or relative abroad, we want to know it is with them instantly. Maybe they are short of cash that month or need emergency medical treatment.
The reality is as people we have become impatient, and current banking does not meet our needs or expectations. When Bitcoin arrived, waiting days to receive an international bank transfer suddenly became less than an hour. The current average time for a bitcoin transaction is just over 40 minutes. In the Eurozone area, the EU and resident banks have introduced a same day payment service. But, the reality is, although both of these are great improvements, neither is good enough to meet our current needs and high expectations.
The DAG-Chain solution
The thing that slows Bitcoin and most other cryptocurrency payments is the verification process called the blockchain. This is where other users verify transactions via a process commonly known as mining. It is because other users of the currency have to verify and confirm each other’s transactions, which means that it takes time.
DAG-chain based currencies – such as Dagcoin – do not require verification. This means that a time of ca. 40 minutes for a blockchain transaction becomes less than than a minute for a DAG-chain currency. This is about the same amount of time it takes to pay with your card at your local grocery store. And that is any payment, anywhere in the world, at any time.
It is also worth noting that with blockchain currencies the more people use them the slower they get. So what is 40 minutes now, will inevitably become longer over time. Whereas, with DAG-chain based currencies this time will only get quicker the more people use them.
Our lives have changed so much over the last two decades as a result of technology. But yet even though everything else in our lives is instant, fast and cheap. Sending money from one bank account to another remains incredibly slow and expensive. In some cases still taking many days or even more than a week to arrive.
Despite Bitcoin and other blockchain currencies shortening this time from days to less than an hour. And the EU working with banks to create a same-day payment process in the Eurozone area. This is still not enough to meet our expectations and needs today of an instant solution.
DAG-chain based currencies, such as Dagcoin, offer the solution. Unlike blockchain currencies, DAG-chain currencies do not require verifications (a process more commonly known as mining). Removing this verification process reduces the time it takes for a payment to arrive from an average of 40 minutes for a Bitcoin payment to less than a minute for a Dagcoin payment.
Become part of a faster future with Dagcoin and join over 200,000 users who are already reaping the benefits.