One of the main differences between El Dorado and other applications used to send and receive FIAT money from Latin America is that we use providers that allow us to use some network features such as Celo and Bitcoin, which allows us to enjoy low fees, instant payments and security in each of your transactions.
But how does blockchain technology help us make this possible? In short, it translates into 2 key aspects: Decentralization and accessibility. Here We tell you how this technology allows us to offer you the best alternative for buying, sending and receiving remittances in the form of cryptos and because it significantly exceeds the services offered by traditional banks.
What is blockchain?
We can spend hours talking about blockchain, but in order not to bore you, we summarize everything in a few lines.
Also known as blockchain (although hardly anyone calls it that way, it's its literal translation into Spanish), is a technology that generates a shared and immutable database.
In other words, every time someone makes a transaction on the network, they generate data that is verified by a group of computers distributed around the world, to be stored permanently in blocks.
There are different types and generations of blockchain. For example, among the most popular are public ones, which they allow any user to access the data recorded in them; whereas in private ones, data can only be known to an exclusive group of people.
Regarding generations, they can be classified into 3, the first of which emerged with the birth of Bitcoin, and later, thanks to technological advances, new functionalities were developed. Among the most advanced blockchains of the most advanced generations are Celo and Ethereum.
But... What advantages does blockchain technology bring us?
To better understand them, it is necessary to understand how finance worked before the blockchain revolution.
Traditional financial systems operate with a centralized database, in other words, they keep all the information in a system to which only an authority of the bank or financial institution has access.
While blockchain technology is decentralized and allows anyone who makes a transaction on the network to have access to the record of all transactions that have been carried out, while maintaining the security and anonymity of its participants.
Thanks to this, it is possible to carry out transactions directly between 2 people., which is known as peer-to-peer or P2P, without the need for the intervention of a central entity that regulates all aspects of the transaction.
For example, traditionally, if a person wants to send money from one country to another, they must go to a bank or exchange office. However, neither the issuer or the receiver of the money has control over the procedure, so they must accept the conditions established by the bank.
When using blockchain, all of this changes, allowing for the following advantages to emerge.
Make instant international payments
On networks like Celo's, transactions can be carried out in minutes or seconds, regardless of where you are, saving time and money for both of you.
If you need to send money in a currency other than the recipient's currency, you can do so through El Dorado's P2P, where you can exchange dollars, euros or Bitcoins for any of the other currencies in circulation in Latin America.
In addition, the entire process can be carried out completely virtually, without having to go to a physical office or wait for a worker to attend to you.
Trust in the protocol
When transactions are executed almost instantly, a significant part of the risk that the counterparty will not be able to comply with the agreement is minimized.
On the other hand, from El Dorado we have added an extra security measure, which makes this risk even lower.
This measure is executed through an escrow system, where the funds that are being exchanged on P2P are held until the counterparty confirms that the parameters established to carry out the transaction have been met.
Transparency
Every transaction made through El Dorado returns a code that indicates its record on the blockchain on which it was executed. So anyone who wants to check transactions directly on the main network can do so.
This increases transparency and trust, since any user can ensure that the transactions being executed are being stored simultaneously on the blockchain network.
Are you ready to start sending and receiving international payments from any corner of the world? Sign up, get verified and start enjoying El Dorado's P2P. We are waiting for you there!
