Fintech is an emerging trend and blockchain is one of the fastest-growing technologies that is disrupting the finance industry. Along with the settlement, blockchain also makes sure that there is complete intercompany transparency. It has been quite visible that blockchain in finance is the most efficiently used technology to develop custom financial software for all types of financial institutions, banks and insurance companies. In this post, we are going to discuss how blockchain is disrupting the finance industry.
What is Blockchain Technology?
Blockchain is a database that keeps a record of various types of information that can not be hacked or changed. It is also known as a digital ledger of duplicate transactions that are spread across various computer networks. Blockchain technology is very helpful in lowering the credit risks, failure of intermediaries, eliminating delays, and more.
Bitcoin is the result of this fintech solution. Here, it takes away all the power to act accordingly as it operates in a decentralized manner. There are many fintech app development companies out there that have built blockchain wallets to store bitcoin and other cryptocurrencies.
How Blockchain is Disrupting the Finance Industry?
1. Security
Blockchain helps you execute an app code that is fully secure against any possible cyber threat, malicious attacks, or third-party fraud. It enables you to eliminate major failure points. Blockchain has lessened foremost data intermediaries like system operators.
2. Scalability
The scalability is ensured through blockchain technology when the system achieves greater TPS than usual. By providing an enterprise solution, it offers global reach, higher integrity, and tremendous resilience. Blockchain supports interoperability between the public and private chains too.
3. Transparency
Blockchain acts as a single shared medium of truth for the network participants. Shared processes, mutualized standards, and protocols are also employed by it.
4. Privacy
Blockchain technology can help your finance company in maintaining confidentiality and privacy by improving the efficiency, trust, and transparency of the fintech company. By rendering various market-oriented tools for data privacy covering each layer of fintech software, blockchain allows sharing of selected data in business networks.
5. Trust
The parties involved in the business network can easily reach an agreement to collaborate and manage the data precisely as blockchain is a digital ledger and maintains complete transparency.
6. High Performance
Some periodic surges for network activities are allowed by blockchain to ensure high performance. More than thousands of transactions are provided per second due to all the private and hybrid networks.
7. Programmability
As we discussed, blockchain creates efficiency and trust to help finance software development companies automate business logic. It also supports the formation and implementation of smart contracts like deterministic software and tamper-proof.
Conclusion
The technology trend of blockchain is a comprehensive process that can ensure a safe and secure life. It is consistent through every transaction. Top brands from almost every industry across the world use blockchain technology because it ensures that there is no theft, no fraud, no data is hacked, and no information is lost. And in such ways, blockchain is disrupting the finance industry.
Author Bio
Nitesh Jogi is a full time business development executive working in Fintech software development company TatvaSoft. He had worked with different companies in the finance domain in his past experiences and from there he gained his passion about blogging in the Fintech sector.
