# Why You Should Make Your Transactions Onchain Rather Than The Use Of Your Local Banks 

*Unlocking Transparency, Speed, and Financial Freedom Onchain*

By [Onchain news](https://paragraph.com/@basecaster) · 2024-11-30

---

### What Does The Word "Onchain" Mean?

Onchain refers to any transaction, process, or data that is recorded directly on a blockchain network. A blockchain is a decentralized, digital ledger that securely records information across multiple nodes, making it transparent and tamper-proof.

When a transaction is **onchain**, it:

*   **Is Permanent:** It becomes a part of the blockchain and cannot be altered or deleted.
    
*   **Is Verified:** It is validated by a network of nodes or miners, ensuring accuracy and security.
    
*   **Uses Smart Contracts:** Some onchain processes are automated using programmable code.
    
    Let's break it down, to make sure we are on the same page, For example if you transfer cryptocurrency from one wallet to another, the transaction is executed and Stored **ONCHAIN** This ensures transparency, accountability, and decentralization, unlike traditional banking systems where data is stored and controlled by a central authority.
    
    Limitations Of Local Banks
    --------------------------
    
*   **High Transactions fees**
    
    Banks charge significant fees for services such as transfers, withdrawals, and currency conversions. These costs can add up, especially for frequent users or those making international transactions.
    
*   **Slow Processing Time**
    
    "This has been the major problem **70%** of **NIGERIAN** face in the country which can be seriously frustrating. I once had the issue when I wanted to pay for my tuition fee which took 1 week with cost of transportation to lay a complain at one of the bank in my local area which made me had issue with my school registrations. Because of the **slow processing time**
    
*   **Centralized Control**
    
    Banks are centralized institutions, meaning your funds and data are under their control. In extreme cases, governments or financial institutions can freeze accounts or impose restrictions on fund usage,We all have had that issue where we get a transaction from 1million and above and our account gets frozen, Due to how Banks are Centralized.
    
*   **Limited Operating Hours**
    
    Banking services are generally restricted to specific hours, and transactions initiated outside of these times are delayed until the next business day.
    
    Benefits Of Onchain Transactions
    --------------------------------
    
*   **Transparency**
    
    Blockchain technology records every transaction on a public ledger, accessible to anyone. This eliminates hidden fees and ensures accountability in the transaction process.
    
*   **Lower Transaction Cost**
    
    Onchain transactions are often significantly cheaper than those processed through traditional banking systems. Cross-border payments, for example, can be completed with minimal fees, making it ideal for individuals and businesses alike.
    

*   **Faster Transactions**
    
    Unlike banks that can take hours, days or even weeks to process payments, blockchain transactions are processed within minutes, regardless of geographical location or time zone
    
*   **Decentralization**
    
    Blockchain networks are not controlled by a single authority or institution. This decentralization ensures that no single entity can freeze, manipulate, or restrict access to funds.
    
    **And many more benefits**
    

Addressing Concerns About Onchain Transactions
----------------------------------------------

### While onchain transactions offer numerous benefits, some users may have concerns about adopting this new technology. Let’s address the most common challenges and provide reassurance.

*   **Volatility of Cryptocurrencies**
    
    **Concern**: Cryptocurrencies used for onchain transactions, like Bitcoin or Ethereum, can have unpredictable price fluctuations.
    
    **Solution**: Stablecoins like USDT, USDC, or DAI are pegged to fiat currencies, reducing volatility while maintaining the benefits of blockchain. These can be used for stable and reliable onchain transactions.
    
*   **Complexity and Learning the blockchain ecosystem**
    
    **Concern**: Blockchain technology can seem complicated for new users, especially those unfamiliar with digital wallets or private keys.
    
    **Solution**: Many platforms are creating user-friendly interfaces with step-by-step guides, intuitive wallets, and customer support to make blockchain accessible for beginners.
    
*   **Scalability Issues**
    
    **Concern**: Popular blockchain networks, like Ethereum, can experience congestion, leading to higher transaction fees during peak periods.
    
    **Solution**: Layer-2 solutions (e.g., Base, Arbitrum) and alternative blockchains (e.g., Solana, Binance Smart Chain) offer faster, cheaper transactions while maintaining decentralization.
    
*   **Fear of Scams and Fraud**
    
    **Concern**: The decentralized nature of blockchain can attract scammers or hackers.
    
    **Solution**: Only use reputable wallets, exchanges, and platforms. Educate yourself about common scams and avoid sharing private keys or passwords with anyone.
    
    In Conclusion.
    --------------
    
    Onchain transactions are more than just a technological innovation they represent a shift toward financial freedom, inclusivity, and efficiency. While local banks have served us for decades, their limitations such as high fees, slow processing times, and lack of transparency highlight the need for alternatives.Blockchain technology offers a solution by enabling fast, secure, and cost effective transactions that anyone with internet access can use. It empowers individuals to take control of their finances, reduces barriers for the unbanked, and provides transparency that traditional systems often lack.While challenges like volatility, learning curves, and regulatory concerns exist, they are being addressed through stablecoins, user-friendly tools, and ongoing innovation. The benefits far outweigh the drawbacks, making onchain transactions a viable and revolutionary alternative.The future of finance is decentralized, and adopting onchain solutions today positions you to be part of a system that values empowerment, efficiency, and trust. It’s time to embrace the possibilities of blockchain and unlock a more inclusive financial world.

---

*Originally published on [Onchain news](https://paragraph.com/@basecaster/why-you-should-make-your-transactions-onchain-rather-than-the-use-of-your-local-banks)*
