user60166: Hawala is an old indian/middle east , money transaction system , based on mutual trust, and uses an encryption system based on spoken keycodes.How is it similar to bitcoin transaction system?

user38618: The major difference is, while Hawala means trust, Bitcoin does not depend on trust. Everything is made of cryptographical signatures, making it 100%** safe, while Hawala cannot / may not be trusted.

** Two exceptions: 1) Majority of hashrate is attacking the network. See this 2) The theoretically possible, but practically impossible hash collisions. It doesn't happens, while the theoretical safety isn't 100%, rather 99.999999999...%

60166: <p>Hawala is an old indian/middle east , money transaction system , based on mutual trust, and uses an encryption system based on spoken keycodes.How is it similar to bitcoin transaction system?</p>
 38618: <p>The major difference is, while <strong>Hawala means trust</strong>, <strong>Bitcoin does not depend on trust</strong>. Everything is made of cryptographical signatures, making it 100%** safe, while Hawala cannot / may not be trusted.</p>

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<p><sub>** Two exceptions: 1) Majority of hashrate is attacking the network. See <a href="https://bitcoin.stackexchange.com/questions/658/what-can-an-attacker-with-51-of-hash-power-do">this</a> 2) The theoretically possible, but practically impossible hash collisions. It doesn't happens, while the theoretical safety isn't 100%, rather 99.999999999...%</sub></p>
