Several news blogs, articles, and different internet forums have in the recent pas covered blockchain technology. So what are the limits in blockchain technology? How can consumers and companies in the financial industry benefit from the blockchain industry?
There are lots of trials, testing currently going on in the blockchain technology in banks, government institutions, logistics firms, and different Information Technology sectors. The hype in the past few years could now be reducing bit by bit. It’s now time for the blockchain makers to deliver.
Below are some of the ways the blockchain technology has managed to change the financial industry.
Help in Reducing Cyber Crime
Every year, several financial intermediaries like money transfer services and stock exchanges and banks do suffer from cyber and machinery hacking attacks. The blockchain is capable of finding the best treatment for the centralized databases flaws. Every part of the distributed ledger does possess a time stamp that won’t allow the hackers to step to the next block. Different startups are currently elaborating on blockchain systems for customer verification.
Easing of the KYC Requirements
Most banks do allocate $500 million every year to ensure they stay in compliance with the set standards. They do identify their clients using the Know Your Customer rules to help reduce money laundry and in maintaining a high reputation.
The blockchain solutions with the cryptographic protection will make it possible for every client to share the same information with all the financial firms on request.
Increasing Money Efficiency Transfers
Today, most of the wide range clearing homes and intermediaries take part in transaction processing. Blockchain technology breakthrough will help do away with these linking chains and come up with an exchange value of the information being processed more efficiently and faster. Higher savings on the cost and security standards are the rewards of blockchain application.
Increasing Stock Exchange Security Platforms
The trading platforms can easily become more secure and be executed within a few seconds when using blockchain technology. The operational errors will reduce thereby improving efficiency and in turn, will boost trust among the existing and the new investors.
Smart Contracts Introduction
It is possible for one to access digital information in the blockchain provided two or more keys are put in place. This feature will make it possible for smart contracts of the future. The syndicated loans will be born. A number of parties can be involved at the same time ensuring timely and beneficial terms for the parties contracted. Payments can be made instantly on delivery.
In case you are shipping goods from a country like China, over 50 people will be interested in accessing the data. The documents which were being sent by post or fax are today calling for a more advanced solution.
Use of blockchain technology promises to come up with a big data bank which is not subject to change. Every big player in the financial industry is today trying out blockchain. They have partnered with fintech startups to help create a special solution that will be able to meet their standards.