Every day, people worldwide send money to each other and use traditional banking methods: wire transfers, credit cards, debit cards, and even e-wallets.

But regardless of the type or name, the level of security these methods can offer is limited because a single central authority controls them. Fortunately, thanks to advances in technology, there is now another option for safer and more private money transfers: blockchain payments.

But how do blockchain payments work, and how do they improve cybersecurity? Here, we will try to answer this question in a way everyone can understand.

Before we start, let’s note that this information covers all types of transfers. So, for example, you can send (or withdraw) money to play roulette at an online casino via the blockchain. You can learn more about this on the Roulettedoc platform – it has everything you need to know about this game.

Traditional money transfers

The reason we say “traditional” is that money is always transferred in the same way, even though new methods continue to be introduced. Whether you use a credit card, an e-wallet or online banking, the process is the same:

• The transfer provider already has the personal information of the recipients and senders and is obliged to verify and store them. If requested by authorities, it will share this information. Likewise, because it knows the parties to a transfer, it can block that transfer due to its own policies or government regulations.
• This provider executes the transfer by modifying its databases and the third parties it cooperates with. So, if A sends 1,000 units to B, their records will change: 1,000 units will be deleted and added to B’s record.
• These databases/records are under the control of the transfer providers. They are stored on a central server or a series of cloud servers. In any case, a malicious party can access the servers and alter existing records – this is how banks are hacked.

In short, traditional money transfers are by no means anonymous. Although the money is yours, third parties decide whether you can transfer it, and there will always be a security risk.

How do blockchain transfers work?

Blockchain transfers are also completed by exchanging records on a digital database, but they differ from traditional methods in many ways:

• The database is stored on the devices of blockchain users, not on a central server. There is no specific address for a hacker to target.
• For a transfer to be completed, the change in the database must be approved by multiple users. So, even if a hacker manages to create a fake record, it will not be valid because other users will not verify it.
• This is also an encrypted database: the sender and receiver information are encrypted. No one can see who is sending and receiving money.
• Transfers cannot be blocked. The blockchain database is not under the control of a central authority. For the same reason, it has no policies and no regulations.

Note that we have explained this process in a very simplified way: for more technical information, you can refer to other sources. In any case, sending or receiving money over the blockchain using cryptocurrencies is much more secure and private. Moreover, it will also be cheaper and faster, as we will discuss below.

Blockchain transfers for beginners: what do you need?

Choose the cryptocurrency you will use – for beginners, altcoins like Ethereum, Litecoin or Dogecoin are a better choice. Decide how much of your chosen crypto you want to buy and sign up for an exchange platform that sells it. (Binance is an ideal option for most users.) Then, buy as much crypto as you want using traditional payment methods (for example, with your credit card).

Find a digital wallet that supports this crypto and download it to your PC or smartphone. When you do this, you will have a blockchain address. Return to the exchange platform and transfer your purchased crypto to your wallet. Now you’re ready to get started: to receive money, you need to share your blockchain address, and to send money, you need to know the recipient’s address. These addresses cannot be used to identify you personally.

Each transfer will have a fee, but it’s not a fixed figure; it will go up and down depending on how busy the blockchain is. But you can be sure that it will be quite low in any case. Transfer times will also vary depending on how busy the blockchain is but will still be short. To give you an idea:

CRYPTO	AVERAGE TRANSFER TIME
Ethereum	5 minutes
Litecoin	2.5 minutes
Dogecoin	10 minutes

You can get faster, cheaper, more secure and more confidential transfers by choosing blockchain: start today.