The global financial system assists billions of people and influences trillions of dollars a day. But the method is widespread with continuing cost through fees, problems, and delays, creating friction through redundant and onerous paperwork, and unlocking up possibilities for deception and violation.
We’ve been learning about the promise of blockchain technology for numerous years now. Many doubters are beginning to wonder if the “year of blockchain” will ever indeed appear. The blockchain isn’t a cure-all, but there are many obstacles for which this technology is the perfect solution. We proceed to recognize regulators, insurers, brokerages, banks, and others actively experimenting ways to harness the benefits of the blockchain. The campaign has only recently launched.
The financial assistance industry is observing an improvement in the number of advocates for the blockchain technology adoption every day. And why not? After all, blockchain has shown tremendous potential. It can disinter mediate the transferal of financial assets digitally, diminishing the role of central counterparties. It can also help enhance the level of trust, accuracy, and resilience in the economic ecosystem.
One of the general talked about topics in the financial services industry now is blockchain in finance. We are starting to understand what blockchain technology is, but how can we best use blockchain technology within our business? We are describing five blockchain technology use cases.
- Promoting and simplifying cross-border payments:
The transfer of value has forever been an overpriced and slow process. This is particularly true for cross-border remittances. Blockchain developers can simplify and speed up this process – and also decreases the costs significantly.
- The tomorrow of share trading:
Blockchain technology will soon achieve share trading. Utilizing blockchain technology allows for higher trade accuracy and a shorter settlement process.
- Smart contracts:
One of the most hopeful applications of blockchain technology is the smart contract. It can complete commercial transactions and agreements automatically. It also strengthens the responsibilities of all parties in a deal – without the added cost of a middleman.
- Improve online identity management
Users can choose to recognize themselves and who will be notified, if we move to identity control to the blockchain. They however need to allocate their identification on the blockchain anyhow, but after that, they can re-use that credentials for separate services.
- Loyalty and rewards
Blockchain technology offers many privileges, including transparency and traceability of activities. This will encourage insurers and banks to express a more captivating support and rewards plan that fits 24/7 performance management and improve engagement.