16 Aug 2018
Updated on January 3rd, 2023
Invasion Of Blockchain Technology In Finance Sector
Techugo Pvt. Ltd.
“The blockchain is the secured platform…Data isn’t secured on Blockchain…It is safe for banking…am not sure what you are saying even…”
These were some of the mixed emotions of information offered for the Blockchain technology and believe me somehow I was so nervous to give a shot to this new technology but sooner I got a hold on the top app builder in UK, and their team explained to me every bit of this advanced technology.
This made me realize that how we all get many different sets of information on internet, which leave us covered with a mystery blanket around the this technology, that the commoners like me felt bewildered to know what exactly the blockchain technology is and how does it help the finance sector.
When you read the information (which I believe is in abundance on the internet), you automatically get confused, with a number of factors which crowd your mind and exhaust you for a while and you silently become a victim of taking part in the reeling misconceptions related to this trending technology.
When do you decide to understand what blockchain technology is? As I mentioned there is an overflow of different opinions which suggests various aspects, which only bewilder the readers further…
Hence, considering this mess in town, we have decided to bring up the information related to blockchain technology and how it would help the financial system.
WHAT IS BLOCKCHAIN TECHNOLOGY???
You would be surprised to know that one of the most discussed topics in the financial services industry today is blockchain technology.
In the current scenario, we all know very well, that what is bitcoins and cryptocurrencies, these aspects, which sound highly advanced are based on the concept of this technology.
This technology is a digital, distributed transaction ledger with identical copies managed on other network’s members’ computers, letting all the parties review the previous entries and record new ones.
The transactions are grouped in blocks and are recorded one after the other in the form of a chain, hence this how it has derived its name.
Is it safe???
Yes, it is 100% safe, and the reason is very simple; the links between the blocks and their data are protected by cryptography, so the last transactions cannot be destroyed or forged, which makes the ledger and the transaction network trusted in any given situation.
But how the financial system is getting boosted with the Blockchain technology??? To understand this, we need to read this post further and help in unleashing the magic further…
- Expedite The Process of Stock Markets Settlements
The arena of the stock market is not going to be limited to one specific area anytime soon, rather this reach would go MASSIVE in the coming time.
But unfortunately the transaction and the settlement is still a BIG concern for the stock exchanges and it consumes maximum time.
In such, situation Blockchain technology has brought the ray of hope, which would help to perform the immediate settlements without the risk of security threat.
- Easier Payments Through Cross-Border
Businesses like mobile app development, where the audience base is scattered over the globe, the payment receiving a hectic process, which involves the higher fees and long duration, in the event of payment received from the international location.
Sometimes, the process takes a longer time, which leaves the app builder with confusion.
Here Blockchain is your savior, which verifies the customer’s identity in the banking system, and on being verified, the customer is issued with a private and public key for the blockchain.
This ledger subsequently works as a decentralized and common mechanism to validate the customer’s identity across different banks.
Hence, it improves the very functionality of the cross-border payment, letting the users and the customers experience a seamless process.
- Data Cannot Be Fabricated
The biggest fear of any agency or the company while dealing with the finances is the alteration of the data, but this very threat is not a threat anymore in the blockchain technology domain.
It allows the data once uploaded secured with the network protocols, which means that it cannot be further changed or altered.
Hence the finance sector can take the benefits from this trending technology and can be assured of their data security from any given angle.
- Smart Contracts
Undeniably Blockchain technology is the perfect answer for the never-ending inconvenience of costly friction and delays in the current business related to the contract execution and resolution.
In this technology the contractual terms, linking terms to counterparties through the public and private key agreement, make the contract execution and lessen the intervention of any foreign body.
As a consequence, the tenders can utilize it to automate loan covenants, payment terms and any other applicable terms in loan agreements and contacts.
- Asset Management
For every business the asset management involves a huge effort while reconciling, tallying with similar records, which as a result converts the few minutes’ transaction into a never-ending SAGA.
I don’t need to mention but this complexity leads to the inefficiency of the business and at times break the deal before it gets clicked even.
With blockchain technology, this tedious process is transformed into a seamless job, letting the users maintain the record data of brokers, dealers, intermediaries, clearing and settlement houses.
All the parties involved in the business would receive the distributed ledger to have access to the same data at the same time, leading to a smoother and transparent regulation of data.
These are just some of the benefits offered by the blockchain in the financial sector and add core value to your business.
Thus, keeping a note of these benefits, various leading financial sectors and the brands globally are adapting it to assure the data integrity, attain financial contracts more transparently and automate many time-consuming records for the seamless process for their business.
If you too are willing to get your business digitized with the blockchain integrated mobile app, then you must not waste any further moment, to get an app developed for your business from a leading mobile app development company and create the financial market for your business to do the global trade efficiently.