Blockchain has come a long way from just being an innovative technology – today, it is reinventing the global fintech landscape in a number of ways and enabling consumers to make seamless transactions in a matter of seconds.
According to financial experts, this is where the future of world economy is and we are just getting started. With blockchain gaining big importance, development companies operating in the financial sector carry a huge advantage going forward. Factors such as ease of use and time to market capabilities will decide the future winner in this space.
Fintech and Blockchain
Blockchain can easily be defined as a digital business transaction ledger that cannot be manipulated or changed. As a data-driven technology – it is designed to record not only financial data but all other aspects that come attached to it with a set value.
Powered by cryptography as a big game changer – blockchain is enabling distribution and copying of digital financial data across different nodes and any modification can potentially alter the hash connections, and hence, it is easy to detect any financial anomaly there.
Traditional banking sector carries its own set of bureaucratic challenges and this creates a lot of hindrance for user experience. Introduction of crypto-powered blockchain is fast changing that and becoming a critical instrument to drive cost reductions for banks. This is working well for the advantage of banks as well as its set of customers.
When it comes to driving innovation within the banking segment, blockchain is specially helping banks in its clearing and settlement procedures and in its own unique way – usage of blockchain technology is also considerably reducing chances of fraud and cyber attack within the financial segment.
With the help of blockchain driven technology enablement, financial institutions are now able to share or transfer safe and completely untouched and unaltered financial data with the help of a decentralised network.
Blockchain Innovations – Smart Contracts
As blockchain is gaining prominence, its use cases are driving innovations and taking the financial industry another notch up towards growth and enabling customer satisfaction.
Smart Contracts is one such invention which guarantees that commitments are met, before a contract or transaction between two parties is concluded. This is getting used in a lot of segments towards including retail, telecoms and manufacturing.
Today’s blockchain technology has matured to quite an extent and is having great potential to transform the managing principles of money transfer mechanism, at global level.
As a technology, blockchain is inherently designed to become the foundation of a new set of applications that involve transaction and interactions that can be recorded in the public and private segments.
As trust is an essential element when it comes to success of all financial transactions processes, blockchain is fast becoming the binding force putting together trust between banking institution and it customer.
The biggest strengthen of blockchain comes from the fact that it enables elimination of duplicate data with an improved and seamless settlement process that holds trust for all the parties.
Crypto-powered blockchain drive a lot of cost savings for reconciliation between banks and at the same time this technology also prevents customer losses due to documentation fraud.
And owing to these advantages, this technology is being used to facilitate payments and settlements in a range of different business circumstances, offering almost real-time transfer of financial transactions and enable considerable reduction in settlement time.
Companies like Portto, are driving a lot of innovation in the market and create solutions that fit the modern stage and deliver future-proof solution for their customers. The company has built an app called Blocto, which acts as a central hub for all aspects of the crypto industry. It is gaining a lot of popularity today.
Customers use Blocto to trade and buy NFTs, access various blockchains like Flow and Etherium, and use many different apps. All-encompassing solutions like this make the crypto industry far more accessible to a wide range of customers on global landscape.
What Future Holds for Blockchain
Blockchain is enabling revolutionary changes in the way banking and finance systems work today and it holds great promise for future and that is why a lot of industries are fast accepting blockchain systems to speed up services like worldwide payments settlement processes, equity clearing, trade finance, and loans. As far as banking and finance is concerned, the future is blockchain and it looks quite bright ahead.
