The financial service sector through one of the biggest in the world faces its own challenges. With such huge potential comes huge responsibilities and that’s when you really can’t afford to mess up. However, it is on its way to leave behind the traditional practices and adopt the contemporary ways so that it can stay ahead of time.
One such trend that has changed the shape and course of the financial industry is the Blockchain Technology. It introduced a never heard before concept in the industry which as fascinating is ambiguous too. It has huge potential to transform the entire functioning of the financial industry for good. For more information visit digital yuan UK.
It came in the year 2008 when people’s growing dependency on the internet was at its peak. It was built by an anonymous developer and really got the right kick start it deserved. If we try to explain it in simpler terms, Blockchain technology is a network of connected blocks that contain information about a particular Cryptocurrency. When we sell, buy, or hold a cryptocurrency we are basically sharing this data which makes us the owner of that currency.
The currency was designed on three major principles of unregulated, opaque, and anonymity. So, basically, Crypto trade is away from any kind of government or authorized set of regulations, it’s very quick and it takes away the power from the institutions and hands it over to the masses.
Due to the lack of intermediaries in this trade, there are minimum expenses, delays, and credit dangers. It’s self-regulated and all the power vests in the hands of the user. The user whose identity is hidden and he is not answerable to any institution for the activities he is indulging in. This makes trading with Crypto safe, secure, faster, efficient, cheap, and easy. All those things which lack in the financial institutions or baking industries.
Now, let’s dig deep and find out what are the implications of the Blockchain technology on the future of the financial industry:
Payments within a country are easy to process but when it comes to international transactions it’s a long hectic process. While it may take from days to a week, it also is unsafe, costly, and unreliable. On the other hand, making international transactions using Blockchain technology is as easy as domestic ones. That’s the beauty of it. It connects the whole big world financially and brings us all at par when it comes to currency value and payment procedures as well.
In any kind of financial services, we are always seeking the support of an intermediary though needed or not. This not only increases the cost of the services but also makes it prone to human errors, security breaches, and compromise on privacy. While all these things are very well taken care of with Crypto as your transaction only stays between the payer and the receiver and no third party is privy to this information.
With Blockchain we can leave behind all the hassle of recording tons of information and transaction history. It’s a great tool when it comes to the administration as all the data is store automatically in the Blockchain ledger requiring minimum human intervention. It has totally done away with calculation processes and recording transactions and many traditional financial institutions are trying to adopt the same technology in their system also.
It has totally helped us get rid of delays and confusion. Once we are using Blockchain technology we are not dependent on anyone except us and that’s the ease and convenience of it. It has helped make the process simpler and easier.
There is another great benefit of using Blockchain technology and that’s it is built on the SMART language rather than the Swift language. Smart technology has some effective components which are: Unique ID creation tool called Smart code to give each user an exclusive identity, the data is stored in small blocks in the form of a decentralized ledger, storing of data in these blocks to allow easy transactions. This is an up to date technology and the major Financial Institutions of the world are smart enough to understand this and hence many of them are already trying to shift to the same.