The blockchain technology developed as the technology underlying Bitcoin in the world of internet, blockchain has quickly climbed to fame for its identity to create a major hype in the world of E-currency. This is a globally distributed ledger running on millions of devices, capable of recording anything of value.A blockchain is essentially a digital entity with identical copies maintained on each of the network’s members’ computers. All parties can review previous entries and record new ones.
All the main transactions are grouped in blocks and recorded one after the other in a chain of blocks. The links between blocks and their content are protected by cryptography, so previous transactions cannot be destroyed or copied. This means that the ledger and transaction network are trusted without a central authority or a middleman.
The blockchain’s ability to record, store and move any kinds of assets with great ease, automation and in a decentralized manner has sparked interest from startups and the overall financial services industry which are envisioning possible use cases and applications in multiple areas.
The use cases for Finance Industry & FinTech Players
Blockchain in Capital Markets
Blockchain technology can easily change and streamline the complete trade process and give an automated trade lifecycle where all parties in the transaction have access to the exact same data about a trade.
Cross-Border Payments
Blockchain can improve cross-border payments by speeding up and simplifying the process while reducing costs significantly and cutting out many of the traditional middlemen. At the same time, it would make money remittances more affordable.
Digital Identity
When online identity is moved to a blockchain-enabled infrastructure, users are able to choose how they identify themselves and with whom their identity is shared.
Loyalty and Reward
Blockchain technology offers many benefits, including transparency and traceability of transactions. This can allow banks and insurers to create more captivating loyalty and rewards programs and help realize the full value of these customer loyalty programs.
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