To warrant security, cryptocurrencies operate on a Blockchain to oversee all transactions in an open and decentralised ledger. Although generally praised and acknowledged, there are some opposing opinions on the effectiveness of a decentralised ledger.

Pros:

· Reduced reliance on financial institutions:

Close presence of banks and financial institutions is not only a major convenience, but also a large privilege. Using cryptocurrency for payments can diminish or completely erase fees and also allow access to banking anywhere in the world, such as it is in the case of Stellar, where the provision of financial services to the unbanked is its social mission.

· Precaution against scam:

The role of miners also encompasses a constant maintenance and monitoring, hence fraud can be spotted quite easily and appropriate action made accordingly.

· Quick Transactions:

The speed of transactions is along with absence of fees, one of most prominent benefits of using decentralized ledger for payments. It usually takes days for banks to process transactions. Conversely, blockchain made payments take mere minutes, are safe and accurate. Fast monetary movement will undoubtedly benefit businesses worldwide and potentially change the way we obtain goods and services.

· Government meddling:

As mentioned before, cryptocurrencies operating on a blockchain are working without the intervention of a third party and are not under control of any prominent financial institution or government which allows them to avoid issues such as artificially created hyperinflation or currency devaluation.

Cons:

· Volatility

Cryptocurrencies experience extreme instability and price fluctuations of tens of percent from day to day. This unpredictability makes it difficult to foresee the viability of investment and future returns, and may make cryptocurrencies seem untrustworthy and unverified for the general public.

· Lawbreaking

Committing crime can seemingly be easier due to anonymous nature of blockchain users. A digital black market that used mostly Bitcoins for transfers “Silk Road” is one of many examples. It was very prosperous and profitable until discovered by the FBI in 2013.