When we talk about the use of blockchain, we mean several key principles that change traditional financial operations:
1. Smart contracts: Automation without intermediaries
Instead of making deals through bank managers and lawyers, Humafinance uses smart contracts. These are programs stored on the blockchain that automatically execute the terms of the agreement when they are fulfilled.
For example: When a borrower deposits collateral, the smart contract locks it. Once the loan is repaid, the contract automatically returns the collateral. If the loan is not repaid, the collateral goes to the investor. This eliminates the need for trust between the parties and significantly speeds up the process.
2. Decentralization: Less risk, more trust
Traditional financial institutions are centralized. This means they control all transactions and store data on their servers. This makes them vulnerable to hacking attacks, failures, or internal manipulation.
Humafinance operates on a decentralized network where data is stored on thousands of computers (nodes) simultaneously. To change information, you need to get the consent of the majority of network participants. This makes the system extremely secure and resilient.
3. Transparency: Every transaction is visible
In traditional finance, your transactions are confidential, which is not always a good thing. This can conceal opaque operations and corruption.
In blockchain, every transaction is public. This does not mean that your personal data is exposed (it is replaced by cryptographic addresses), but the fact and amount of the transfer are visible to everyone. This allows for auditing the platform's activities in real-time and ensures that all operations are performed fairly.
These three elements — smart contracts, decentralization, and transparency — are the foundation for creating a more efficient, fair, and accessible financial system. Humafinance, by using them, is not just creating new products but changing the very essence of financial relationships.
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