A bit of an odd duck, blockchain is now firmly embedded into the mainstream. While consumers may be unfamiliar with its internal workings, the power this technological solution is exerting over the financial and banking industries is already tangible to the point its involvement is undeniable. To be a successful financial company today, you ought to understand how blockchain is there to not only boost results for your firm, but also provide businesses and customers with value, drive results, and lessen the load that traditional financing comes with.
So, how is blockchain tipped to transform everything that we know about finances, banking, and the way we see money in general? Here are several examples:
1. Money Transfers
In today’s banking systems, money transfers have grown quickly. They have partly done so thanks to blockchain verifications. However, banks are still very much reliant on traditional human operators to carry out the bulk of their transactions, but the blockchain is now slowly but steadily empowering remittances.
In fact, remittances based on blockchain are quicker, more reliant, and as it turns out safer. The public accountability of a ledger allows everyone to have a look into how a transaction has been carried out. It’s not just that consumers benefit, though. Banks are also saving up on operational costs, the time necessary to place a transaction, and more.
2. Lack of Fees
The word cheap in banking may sound like a bit of an antipode, but do not worry. Cheap doesn’t mean bad. It simply means advanced enough. Blockchain allows transactions to avoid a complicated network of credit processing companies and allow institutions to make transactions quickly and efficiently, without incurring additional costs.
3. Boosting Transparency
In order to secure banking transactions and eliminate third-parties’ ability to tamper with transactions, blockchain has introduced the ledger technology, a public system of checks and balances where no central authority sets the board. Each transfer of ownership will go through the ledger, generating information about every detail, from the amount transferred to detailed information about senders and receivers.
4. Smart Contracts
Smart contracts are certainly one of the most ambitious parts of the blockchain experience and there is hardly any denying that. Smart contracts automate much of the processes that are otherwise carried out by software that needs verification. Now, you may think that entrusting computer protocol contracts is a little outside your comfort zone, and we can understand that, but the truth is, smart contracts are actually much safer than most of the solutions you will find out there.
They ensure the fairness of any and all transactions and handle a variety of problems that may arise as a result of a faulty transaction. There is the thing though, instead of slowing down a transaction, a smart contract is able to solve much of the issues that arise in traditional banking. Smart contracts are similarly more beneficial to traders who buy and sell stocks and currencies, benefiting from much quicker speeds.
5. Reduced Fraud
Unlike a traditional banking system that is assailed by hackers on daily basis with Internet thieves trying to hit and empty bank accounts around the clock, blockchain is impervious to attacks. While hacking could still take place, it is very hard to affect an actual financial service that leverages the power of the blockchain to bolster its overall security. Blockchain allows you to create and use digital IDs, prevent DDOS attacks, and decrease the cost of doing business by so much that more can be spent on security solutions.
6. Not Just Finances
As it turns out though, blockchain is not only a powerful agent in finances. You may actually benefit from it in virtually every other aspect. If you have a business, you can bolster its credibility by adding more to it. For example, online casinos today use blockchain to allow you to play casino slots online and enjoy an iron-clad offer that is impervious to traditional hacking attacks. Every business can benefit from blockchain by leveraging the potency of a solution that makes it simple to increase accountability and add to the reliability of your brand. The applications of blockchain and smart contracts are many and they allow businesses to operate in a new, safe, and customer-friendly way. Whatever your product is – from banking to shipping, to a casino game, blockchain adds tremendous value to all.