Blockchain
According to IBM, “Blockchain is a shared, immutable ledger that facilitates recording transactions and tracking assets in a business network. An asset either be tangible (a house, car, cash, and) or intangible (intellectual property, patents, copyrights, and branding)”.
In other words, blockchain is a method of storing assets required in a business environment for future use in which there is no chance to lose and change the information stored in it.
In the block of the chain, every block contains information in which two layers of ownership are established- one is who owns the current data, and another is the previous owner.
Blockchain offers virtual security, transparency, trust, privacy, and high performance at a significantly low cost. Especially in the financial sector, it was estimated that at the end of 2030, the development of blockchain will save up to $27 billion in cross-border transactions.
Blockchain
in the Financial Industry
Blockchain
technology has a feature that applies in almost all industries, from the
primary sector to the supply chain in manufacturing industries to the tertiary
sector.
Blockchain can
change bank and financial services to a great extent. For the client prospect,
it helps to make the prompt transfer of money from one account to another worldwide in a minimal period. The cost associated with this
service is negligible and eliminates the chance of hacking. Moreover, it offers
services without middlemen.
Due to the
decentralization of the banking sector in recent years, the demand for highly
encrypted data generation, protection, and storage became possible through blockchain
technology. This technology made cross-border transactions quick and secure.
Blockchain deals with
peer-to-peer lending, insurance, real-time payment, trade finance, compliance, and mainstream banking solution. This has improved the settlement
cost with a secured and proficient payment method.
This
technology generated the crypto-currency, which helps to connect the financial
market with digital wallets. Bitcoin is an example that has been considered
globally as a means of transferring value from one client to another.
Record
keeping system in blockchain establishes a robust mechanism for data protection
and protects companies from facing false claims. This could be the front hand to speed
up the payment release process to the service providers.
Real estate
is also using this technology to protect information about clients. Through this technology, their ownership transfer records and financial profile verification reduces the paperwork and save cost for doing these deeds.
Blockchain
technology has created a large scope of crypto-currency. A new financial
process like Initial Coin Offering (ICO) is seen as a lucrative tool to connect
many investors around the globe. Generate funding for investment projects
from unknown investors with their reciprocal return agreement that can be done
with the help of blockchain.
