Cryptocurrency exchange Coinbase has claimed significant savings for users when transactions are moved to blockchain technology.
Coinbase's State of Crypto Report confirms that legacy financial applications make transactions more expensive, slower, and harder to access. Meanwhile, blockchain-based transactions have proven to be much cheaper, faster, and conducted through a more accessible system.
Cryptocurrency financial transactions have proven to attract users because of their simplicity and accessibility. In this regard, Coinbase has proposed the use of blockchain-based transactions, according to CoinGape.
Coinbase has assessed the growing interest of consumers, especially young people, in instant transactions comparable to the speed of the Internet. The exchange's research shows that more people between the ages of 18 and 40 are starting to use cryptocurrencies, with growing confidence that digital assets can fundamentally change the financial system. The shift away from traditional financial transactions in favor of cryptocurrency and blockchain technologies will make them more efficient and accessible worldwide.
Coinbase noted that there is a growing global demand for 24/7 transactions without delays or unnecessary costs, indicating that a revolution in financial transactions is imminent.
Blockchain has many advantages over traditional systems. A Coinbase report cites that 71% of Americans are willing to have much cheaper transactions due to the new, revamped financial system. For example, in 2022, $74 billion was saved by using blockchain transactions instead of traditional credit cards.
Cryptocurrency transactions on the blockchain, as reported by Coinbase, save 5,000 times the cost compared to traditional systems, especially in international transfers. The fee for transactions on the blockchain costs only $0.01, while the fee for credit card transfers reaches 1.5-2.5% of the transaction amount.
In addition, the transaction processing speed on the blockchain is 24 times faster than traditional payment methods such as Western Union. Coinbase found that the majority of Americans (76%) believe that cryptocurrencies greatly simplify financial transactions.
In addition to the above, decentralized finance (DeFi) allows loans to be approved and processed faster than traditional financial systems.
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