Have you ever sold or bought anything? Whether it’s used goods, mobile phone accessories, or graphic design services. What is the buying and selling fxcm markets mechanism? You upload the goods being sold, the buyer makes a transfer, the funds are held by the marketplace, the goods are delivered by a courier, and if the goods are received by the buyer, you can withdraw the funds with a discount as a reward for the escrow service provider.
Blockchain can get rid of all the middlemen above, you no longer need banks and marketplaces so this will cut your transaction costs. Buying and selling transactions can be faster, and more efficient, and do not need to deal with government bureaucracy. How can blockchain do all that? Well, to understand what crypto trading is, you must first get acquainted with blockchain.
Transacting on the blockchain is like having a two-way transaction with someone carrying a shopping receipt. These two people will later record the transfer of money in the sale and purchase transaction with the note. Transactions are recorded using a cryptographic language, so they cannot be changed unilaterally. The reason is, that shopping notes are carried by millions of different people so you have to go and hack millions of shopping notes at the same time. That’s the parable of how blockchain works.
Blockchain is not only used in cryptocurrencies. Blockchain is also used to prevent the piracy of intellectual property such as songs, software, photos, games, and so on. For example, a singer saves a recording of his song with blockchain technology, to be able to hear the song you have to buy the blockchain because the stored song will not be freely duplicated or downloaded. People who illegally store the song of the blockchain could be penalized for piracy charges.