Block Chain in Finance Service or Fintech

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Blockchain is a technology that provides more security than banks and any other financial organization so that one can easily send his money to another person without any hassle through greater security. In today’s time, where there is no security at all in such organization and fraud has become common, blockchain can prove to be an effective solution. It enables more open, inclusive, and secure business networks, shared operating models, more efficient processes and new products and services in banking and finance. It provides digital security within shorter period of time also in lower cost and allows the greater level of customisation. For example- it can be customize according to the investor’s demand, it can expand the market for them and also can decrease cost for issuers and reduce the counterparty risk.Block chain can be used for the purposes like capital market, asset management, payments and remittances, banking and lending, trade finance, insurance, money transfer, smart contracts, internet of things, personal identity security etc. In future posts I will provide a more detailed critique of the impact of blockchain it these sectors.

The benefits of blockchain in finance sector are discussed below:

1.Enhanced security: As I have already told that it provides high security by eliminating single points of failure and also reduces the need for data intermediaries such as transfer agents, messaging system operators and inefficient monopolistic utilities.

2. Transparency: It provides full transparency as it allows all network participants with permissioned access see the same information at the same time. It uses a distributed ledger which records the transactions and data identically in multiple locations. This enables member to track the history of transactions and reduce the chances for fraud.

3. Traceability: In blockchain if the customer is concerned about environmental or human rights issues or the organization face any trouble- it helps with the issue by keeping the proof. It directly shares data about provenance with the customers. Traceability data also expose the weakness which again helps in improvisation.

4. Trust: As blockchain provide transparency, enhanced security and immutable ledger, therefore this becomes a reason for the customer to trust even more, which is capable of providing all the facilities to the customer according to their demand.

5.High-performance ability: This hybrid network is designed for high-performance ability which makes it capable of completing the customer’s work in less time, which not only makes it less time consuming for the customer but also proves to be more convenient. For example- it can sustain hundreds of transactions per second.

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2 thoughts on “Block Chain in Finance Service or Fintech

  1. sekret-natury.pl

    Excellent write-up

  2. Dowiedz się jak

    Outstanding feature

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