Banks vs Blockchain
The future of finance is unfolding before our eyes, and it's a choice that could change the way we own money and data. Consider this: in 2010, Laszlo Hanyecz made history by purchasing two pizzas for a whopping 10,000 Bitcoins, now worth over $200 million. This seemingly trivial transaction marked the dawn of a financial revolution - the rise of blockchain technology.
The Issue With Banks
Banks have more ownership over people’s money than the people themselves. Here’s why:
- Banks Use client funds to
- leverage and lend out money
- make good/bad investments
- borrow money
- Banks have the power to freeze client funds and not give the funds to the client
- Banks view all client transactions, deposits and withdrawals
- Large amounts of paperwork when having a company with a bank
These points are real and people are noticing. People are realising that the money they own is not fully theirs and are relying on banks and institutions not to lose their funds. Banks are the old way of storing your money because of the better alternative that is emerging.
The New Alternative
Blockchain technology allows for a decentralised way of storing your money. This means no one centralised entity (Bank) keeps your money and does what the law permits them to do (and sometimes not what the law permits). Now all a blockchain is, is a distributed money management system that handles the checks and balances that a bank does and only allows the movement of money to be done only when the digital signature of who owns them is present. In the case of blockchains those checks and balances are being done by every node in the system.
What's the advantage of all this one might ask, firstly it is that only if the entity presents their digital signature can that money/value be transferred to another entity. This is not by trusting the system as with banks, this is by the underlying cryptography that underpins all blockchain systems. Secondly, the blockchain system is not holding your money as debt owed to you and then using those funds (can also be debt) for its own operations, this is how then a bank can fail. A blockchain simply manages the allocation of value to a set of cryptographic keys (blockchain accounts/wallets). So now the system is no longer based on trust but on maths/cryptography. This is a more secure way of storing your money. However, we at Avail believe there are some issues with current blockchains that are not pushing blockchains to be the mainstream way of ownership.
The Issue with Blockchain
Blockchains are great, and we believe they are the future of the financial system as they allow people to own their hard earned money. However, until now blockchains have been struggling with some issues that have made it difficult for people to accept them and adopt them. Here are some of those reasons:
- Current Blockchains such as Bitcoin, Ethereum and Solana are not private
- This means if you send money to another wallet, anyone can see your transaction
- Current Blockchains are not easy to use
- This means people not in crypto tend to find it tricky to get used to how the Dapps (decentralised apps) work such as wallets. The whole process is not easy for everyone to use to deposit money, send money and use the interface.
Our mission
Our mission is to give everyone the power to be able to have access to blockchain technology in a seamless way for everyone to use whilst preserving our users privacy.
We are doing this by building a private self custodial wallet on the Aleo Blockchain which is a new blockchain that is privacy preserving unlike the other blockchains. On top of this we are focusing our efforts on reshaping the way that users interact with their wallet making it faster and easier for them to use. Our main aim is to give people frictionless control of their money and data.
