Or rather,
Alice pays Chase Bank and Chase Bank pays Bob
The above statement describes how the majority of “peer-to-peer” transactions are structured today; there’s a middleman or 3rd party involved. Since 2009, the year after the major 2008 financial crisis, we have another option for peer-to-peer payment. This solution was described by Satoshi Nakamoto in his bitcoin white paper titled Bitcoin: A Peer-to-Peer Electronic Cash System
Bitcoin introduced an electronic payment system based on cryptographic proof, allowing participants to trust math instead of other humans.
But Venmo, PayPal, Zelle, and Cash App work just fine!
Sending “cash” digitally is becoming more mainstream with the adoption of money transfer apps available on mobile phones. But each one of these are 3rd party entities that are forced to adopt regulation and can be instructed to prohibit certain transactions through newly introduced legislation, Executive Order, etc. As of September 2021, each of these entities must report all transactions exceeding $600 to the IRS. As far as sovereign governments are concerned, their citizens’ financial affairs are no longer private but take place at the discretion of their ever-restricting rules and regulations.
Bitcoin is available worldwide, every minute of the day. Bitcoin never closes.
The technology that supports bitcoin is decentralized, which means there are no brick-and-mortar facilities that can be raided to halt bitcoin. Instead, it is supported by thousands of nodes (specialized computers) that reside around the globe, on separate power grids with multiple connections to the internet.
Thanks to the invention of bitcoin, Alice can pay Bob any amount of bitcoin she chooses, when she chooses, and regardless of where she or Bob resides on the planet. Upon payment, Bob can trust the amount of bitcoin he receives is his, without any fear of a reversal, dispute of payment, or confiscation.
Sanctuary Dex™ makes bitcoin useful.
Sanctuary Dex™ is a software development company that is focused on making cryptocurrencies like Bitcoin more accessible and easier to use for newcomers. From mobile cryptocurrency wallets to crypto gift cards to merchant pay solutions; Sanctuary Dex™ is making peer-to-peer transactions easier.
Author: Stephen Stubblefield, Sanctuary DEX Technical Advisor