What is Blockchain Technology?
Blockchain Technology is a digital ledger of financial transactions; which can be planned to record not just financial transactions but practically everything of money.
How are financial services using Blockchain Technology?
Crypto-currency was introduced with the aim of bypassing financial institutions and central regulatory bodies.
However, cryptocurrency technology has gradually become a field of interest for banks all over the world. The financial industry has spent an estimated $1.7 billion on Blockchain technology in 2017.
Industry experts predict a range of areas in the finance industry that would be right for blockchain technology such as proof of trade finance, expenses, clearing, and settlement, etc.
While most of the plans haven’t grown outside the ‘experimentation’ phase; whereas there is an increasing number of initiatives gaining attention in the industry.
Application of Blockchain in Finance Industry
The World Bank introduces Blockchain technology bond to fund development
The World Bank has declared that it is launching a crypto-currency bond on Ethereum, with the running structure of Microsoft’s Azure cloud platform.
The Bank chose the Blockchain Technology platform due to its vast active community of developers worldwide. Every year, the World Bank issues $50-$60 billion in bonds to develop global projects.
Because of this, the bank has often been at the lead of financial innovation, delivering the first electronic bond in 2000.
Know Your Customer (KYC)
Financial institutions are afraid about the increasing costs which they have to bear in order to comply with KYC i.e. Know Your Customer rules.
These actions consume a lot of time and have to be performed separately by all the financial-based institutions.
According to a Thomson Reuters Survey, the predictable expenditure of these processes rises from $60 million to $500 million per year.
With the acceptance of a cryptocurrency system, the self-regulating verification of each client by the financial organization would be reachable for other banks to use so that the KYC process doesn’t have to be revived again.
E-Wallet Applications
If you want to use a blockchain currency or bitcoin, you need a wallet to keep it safe.
Applications can be created for desktop and mobile to keep the bitcoins also to make it – UX-friendly, and always secure.
Bitcoin or Blockchain Money Exchange
Trading boards are the best way to profit using bitcoins and crypto-currencies.
High quality of software and applications offer’s highly accessible platforms with an excellent variety of security, facility to connect to external exchanges, and the whole environment to launch your currency with the help of crypto-currency.
Conclusion
Despite the firm rules around the finance sector, the financial institutions have started to grasp the potential of blockchain technology seeing its popularity in the current market.
The big companies in the financial industry have begun leading the tests to find out the potential use of this centralized technology for their business processes.
Blockchain can solve many complications while making the system more clear, easy to access, and reliable.
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