The blockchain is a decentralized platform that allows people to send and receive data in a quick, secure manner without the need for an intermediary. Blockchain tech offers better trust, more efficiency, and more control for all involved parties.

 

What Are the Benefits of Blockchain?

 

Blockchain is a type of radical innovation that will change the global economy.  It has the potential to create new modes of economic organization with unprecedented levels of transparency, decentralization, accountability, and immutability. Blockchain technology can help to transform the existing financial system. The potential benefits of blockchain technology include real-time payments and transparent information sharing, among others. That said, it’s impossible for any one entity to dictate how blockchain will shape the future. Blockchain is a growing field of personal freedom that can play an incredible role in our movement towards financial inclusion. The benefits include the ability to store important information securely and recreate a complete, trusted record time after time.

The biggest challenge of the current society is the extreme lack of financial accessibility across the world. If a Blockchain system were optimized for real-time detection of financial transactions, recording data and supplementing it to public ledgers, billions of people could see their way out of poverty or opportunity.

 

How Is Blockchain Different from Current Systems?

 

Blockchain technology has been in development for the past decade, and many organizations including banks, startups, hedge funds, and consumers have caught on to its potential. It’s because blockchain technology challenges another idea that has existed for centuries – the notion of centralized authority. Just this year we’ve seen a significant spike in the rate at which financial institutions offer products related to blockchain. From digital tokens to cryptocurrencies and initial coin offerings (ICOs), companies like Uber and Microsoft are choosing not to wait and dive into this new sector early with investments.

 

WHO will Benefit from Blockchain in Fintech ?

 

Blockchain is going to change the fundamentals of how money moves in this society. The original intention was not just for financial services companies to benefit from it, but for blockchain to serve as a backbone facilitating e-commerce transactions. It does so through a standardized and transparent way that helps thwart cybercrime and crime generally. In the long run, blockchain will affect all financial services players such as developers, payment gateways, banks and wallets. Blockchain provides a more secure system for accountability, provenance and transparency of data. Since a single technology would replace the need for existing (and vulnerable) banking systems, this could reduce the cost of using fintech tools like IRA’s and electronic wallets. This would be good news for many people who don’t have access to traditional financial platforms The development of Fintech has been falling short because it could not keep up with the pace of technological advancements. The Blockchain presents an opportunity to change that and provides a lot of advantages. The key advantage is anonymity, which is imperative in financial transactions. By making use of blockchain, companies can make new life-saving developments. One such company is SelfKey which built KYC solutions replacing those outdated centralized models that are susceptible to power abuse.

 

What Will it Take to Ensure Adoption ?

 

The transition to blockchain technology has been happening slowly, with a lot of the focus on traditional financial institutions like large international banks and some smaller companies. But it’s been going so slow that financial regulators in major countries have finally taken notice. In December 2016, the United States released an official report that examines the potential risks and benefits of blockchain technology before launching a government-wide civic-blockchain initiative. In Blockchain, there are no middlemen to take commissions or make recommendations. No central authority with power over your transactions dictate that you pay a fee of $3 in order to receive $1 worth of value.

Blockchain transactions are permanent, meaning they can’t be edited, “finalized” and chargebacks aren’t an option so it is nearly impossible for hackers to steal from the network. Transactions on Blockchain are totally transparent, simple and easily verifiable by anyone on the network. Although still new and untested, the advantages of Blockchain technology may very well make everything we know about financial systems obsolete in the near future.

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