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Why should a database need to transfer funds? Bitcoin doesn’t transfer funds, it’s just a shared ledger of what funds have been transferred. Lots of banks use O

• afiori 1y ago
  > Lots of banks use Oracle to record fund transfers, but Oracle doesn’t transfer any funds. because it is the banks that do the transfer, so they need to have liquidity > Bitcoin doesn’t transfer funds, it’s just a shared ledger of what funds have been transferred. the bitcoin blockchain act as a single bank in terms of transfering between bitcoin wallets, there is no need for central liquidity because it is all "internal". A perfect example is arbitrage between bitcoin exchanges, to my undestanding many exchanges do internal transactions off-chain and only interact with the public blockchains for deposits/withdrawals. If a user wanted to exchange bitcoin for ether and then withdraw the sum the exchange would need to have liquidity in ether for the withdrawal.