Frequently Asked Questions
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Confideal is a blockchain-powered service.
What is blockchain?
Short answer:
Blockchain is database architecture. It involves multiple computers in order to ensure the consistency of data. That's why blockchain is called a distributed database. All the pieces of data are encrypted with a highly tamper-resistant algorithm.

Long, but simple answer:
Let's try an example. You buy every day from a good old local grocery store. You have a personal account with the grocer, so whenever you need anything, the grocer gives you a credit by making a record in a book. When you come to the store on your payroll day, the grocer checks his records and tells you how much you owe. The grocer's record book is a metaphor for a traditional database.

Now imagine a blockchain-powered grocery store where each buyer has their own record book. Whenever any of the customers makes a purchase, every single person present in the store opens their book and makes a record. In this store, none of the books is considered more authoritative than the others. When it's time that you should pay your credit, the amount told by the grocer is checked against all the books. So if the grocer's book is lost or damaged, you due amount is nevertheless known.

To make it more true-to-life, let's mention that the grocery store has its own currency, and whenever you need to save any transaction to the record books, you pay a penny it that grocery store currency.

And, finally, all the records in all books are stored encrypted, so it's hard to fake a record. Even if anyone tries to, their book gets destroyed, and the information stored within the community remains consistent.
Why using blockchain?
Secure and cheap transactions
Blockchain transactions in cryptocurrency are fast (only take seconds to minutes), they are not subject to approval by the regulators, and they are the best option for cross-border transfers since they may cost much less than SWIFT transfers in dollars or cash transfers like Western Union.

Single point of truth
In traditional business practice, two-party agreements exist in two paper copies, each of equal legal force. Since there is no independent and reliable storage that would witness the original state of the document, either copy may be forged and used for unfair legal action. Blockchain contracts do not have such vulnerability: the contract is stored in a single strongly encrypted copy, so the original agreement terms cannot be forged in case of a dispute.

Smart contracts
Smart contracts is an invention that became possible with the appearance of blockchain. It's a program and at the same time a virtual deposit locker. The program describes the conditions under which the funds will be released from the ‚Äúdeposit locker" and handed over to one of the counterparties. Smart contracts can be programmed in a way that its execution could be fully automated.
The concept of the escrow agent has something in common with smart contracts, but the latter is more flexible, requires less time to start and costs less.
What is your service for?
Confideal helps you create and manage smart contracts. With our service, you make agreements and pay or get paid, all in one place.
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