5 things that make crypto unique

Over 500 million people globally have verified their cryptocurrency accounts. Cryptocurrencies’ total capitalization long exceeded $1 trillion. What makes crypto so unique that people invest in it? Let’s dive deeper into the 5 most important features.

1. No trust is needed

• Traditional financial systems are built upon trust systems.

  Citizens place trust in central banks, corporations, and other institutions to verify transactions, resolve disputes, and regulate the market in general. History shows that these institutions actively exercise these powers, and not always in the interests of end users. For example, the U.S. Bank was fined $37.5 million for illegally exploiting customer data.

• Blockchain-based systems do not require trust: all transactions are governed by consensus algorithms, a set of rules on how the blockchain will operate.

  The rules of the game are known from the Genesis block and can not be suddenly changed like a government policy on printing more coins. All rules are cemented into the mathematical machine and no middleman is needed to verify a transaction.

• CrossFi Chain also requires no trust.

  Tendermint Core architecture is a Byzantine Fault Tolerant (BFT) consensus protocol. It is secure and eliminates fraud, as the Tendermint algorithm automatically blocks nodes that transmit incorrect information during the validation process.

2. Decentralisation

• Traditional finances are centralised.

  Storing financial data and money in centralised systems makes it vulnerable to various forms of fraud and attacks. The problem can also come from the inside. Globally, financial institutions reportedly lose over $100,000 per employee fraud case annually. This fraud is also mirrored in bank terms, conditions, and fees for all customers.

• Decentralised systems have no single point of failure.

  It makes blockchain-based decentralised financial systems robust and safe. This being said it is still important to note that there is a huge difference between centralised and decentralised cryptocurrency exchanges custodian and non-custodial wallets.

• The Cross Finance team is aiming to decentralise not only core operations but such secondary processing as financial data storage.

  CrossFi App offers non-custodial solutions. And the governance coin MPX ensures that decentralisation is at the centre of the operational model.

3. Open access

• Traditional banks have the power to impose sanctions and block accounts, and as a result they can be an instrument in the censorship machines.

  Even without that, banks often freeze accounts if the algorithm detects “a suspicious activity”. In the US, more than a million cases are filed annually. Most of the accounts will be unblocked but the official investigation period exceeds a month for each case.

• Cryptocurrencies have neither geographical boundaries nor instruments to block individual accounts.

  Censorship-resistance of crypto has won the hearts of millions: it is freedom to transact without risk of confiscation.

• CrossFi is built in the same way.

  At the moment, the XFI Console login is organised via the seed phrase: no email, no phone number, and no ID card is needed to access the money. Also, there are no geographical boundaries and it is reflected in the flat fee. Sending XFI within one country costs the same as sending it to the other part of the world.

4. New financial instruments

• The traditional institutions reserve the best deals for the lucky few.

  Not all instruments are even accessible to a regular investor. Becoming a professional investor comes at a cost and with an entry barrier: there is a minimum amount to invest.

• Cryptocurrencies made it possible to democratise the field and gave birth to the DeFi sector and a hundred new ways to get returns: starting from holding to staking and Play-and-Earn models.
• CrossFi offers MPX staking with a 17% annual return.

  Also, the CrossFi modular architecture with unlimited scalability and high processing speed allows building a multi-purpose DeFi application CrossFi xAPP (https://docs.crossfi.org/crossfi-xapp/) with new products available like yield farming or liquid staking derivatives.

5. Out of the hamster wheel

• All in one, traditional financial systems operate in a way that the value of money is constantly decreasing.

  A dollar in 2023 buys only 4% of what could be bought for it in 1800. Among many reasons for that, there is a fact that for almost 50 years, dollars are no longer backed by anything. As a result, people are forced to earn more and invest more just to be able to stay where they are.

• Cryptocurrencies serve as a way out of the vicious hamster wheel.

  Bitcoin was created as a way out of the unsustainable global banking system. The algorithms behind the first cryptocurrency battle it with the limited supply and halving events. As a result, Bitcoin’s price has grown from $3500 to $45000 in 5 years.

• CrossFi’s native coin XFI is backed by real products.

  XFI derives its value from the growing use of real-life financial products within the CrossFi ecosystem, ensuring a stable liquidity flow.

All in one, cryptocurrencies indeed offer a more sustainable alternative to traditional finances, contributing to financial inclusion and population wealth growth.

CrossFi aims to boost mass adoption of cryptocurrencies by building the bridge between these two worlds and offering a solution that helps people use crypto on par with fiat in an easy and convenient way. Learn how we battle financial inequality in our blog!