It all started in 2008 when Blockchain first caught the eye of major industry experts as one of the potential technologies of the future. It took the world by storm at every step of its success. It does not come as a surprise to find the potential of blockchain in banking and finance sector, much like every other sectors, making its impact. However, the question is how is Blockchain transforming the way banks function and what will be its affects on the industry. With the initial knowledge of Blockchain and its unique features, such as decentralization, transparency, and immutability, it became easier to dedicate trust to this extraordinary technology.
Today’s era holds witness to cases of few major online frauds and money embezzlements. As banking and finance is the major area rooting for security right now, a blockchain revolution in banking sector can actually be the best thing to happen! At such a time, being backed up by a technology which is not only claiming to be completely secure, but has also proved to offer a smooth working for everyone, is in itself a great achievement. Blockchain technology is turning around how one of the major industries of this world work. Most systems that use blockchain allow only authorized people to access the data. This implies that the data is completely safe, even online. Hacking into the data stored within a blockchain system is almost impossible. This is one of the main reasons why the finance and banking industry has continued to place its trust on the technology after initial testing.
ADVANTAGES OF THE BLOCKCHAIN REVOLUTION IN BANKING
In comes a great responsibility with a great amount of money! Can you even imagine handling such a large amounts of money and keeping track of where it is going, whom it belongs to, and where did it come from? In the world of 7 billion people keeping more than $5 trillion in various banks and with offline and online transactions such as ATM withdrawals, online transfers happening every second, the problem of security and big data was drowning the banking and finance industry in overwhelming stress. Blockchain technology comes in as a savior for problems faced by this sector for a number of centuries. One of the most important aspect of using the technology for handling world’s money is mirrored in its features. With transparency as well as immutability comes one of the most important requirements of a secure network. The decentralization of the banking and finance data allows real time transactions and real time updates without even a 1/100th second delay. A possibility such as this is not only a game changer for this sector but also one of the most potential solutions to a long standing problem of money embezzlement and errors in operations.
The Blockchain revolution started with lots of risk takers in the midst of many positive, negative as well as confused opinions of financing experts. However, clearing the waters around it, the technology grew as a revolutionary solution to the question of security in the banking industry. Not just that, it managed to resolve many adversities the sector was facing, such as management of data, delayed international payments, execution of smart contracts for commercial transactions, etc. It can be said that the scope of the blockchain in banking and finance goes beyond reduction of fraud. Various trading platforms as well as insurance companies are benefitting from the technology because of its immutability.
THE EMERGENCE OF CRYPTOCURRENCY
Although it was with the success of Bitcoin that the word cryptocurrency starting falling on our lips, there were many cryptocurrencies that already existed. What lead to the success of Bitcoin became a serious question back in the day. Futurists see a lot of potential in cryptocurrencies, and today there are more than 1300 in the whole world. Bitcoin, Ethereum, Ripple are some of the major names. Therefore, the question is how has the emergence of cryptocurrency affected the banking and finance sector and what was the role of blockchain in that? Many organizations are using cryptocurrencies for growing very fast. While most foreign transactions take three to five days, with cryptocurrency such as Ripple, the transactions can not only be fast but also cost effective, cutting on both the waiting time and transaction fees. So, what is the role of blockchain in all this? Most cryptocurrencies that exist today depend on the technology i.e. Blockchain. A single ledger that is maintained for every transaction happening any second around the world. Moreover, as it is completely safe and cannot be hacked, blockchain in banking and finance has proved to be one of the most effective tools. Absolutely trustworthy and safe, the fear of saving money in banks or investing in businesses have been reduced exponentially since the discovery of this technology.
INVESTING IN BLOCKCHAIN FOR BANKING & FINANCE
Tokyo Techie makes it possible for institutions taking a step forward to the world of Blockchain with complete assistance, technical backup, and its knowledge base. With a team of experts in Blockchain development, and being the top blockchain development agency, we pride in helping you improve your business processes, increase the efficiency of operations while reducing costs as well as risks. Some of the major blockchain in banking and finance services that we offer are:
- Initial Coin Offering (ICO)- We make it possible for you to find an investor-angel who can get your own cryptocurrency live and going with some of the most successful ICO digital marketing techniques.
- Smart Contract Development-Blockchain smart contracts (also known as crypto contract) allow safe and secure contracts between two parties. Get your smart contracts developed with our help.
- Hyperledger Development- We can help you start with the development of your own hyperledger. Interested? Let us know.
- Cryptocurrency Development- Want to develop your own cryptocurrency? Our blockchain developers can do that you.