Most of you have understood the principle of the blockchain, and the huge spike in interest to the bitcoin cryptocurrency arose at the same time. Bitcoin doesn’t come off the pages of news about the world of fintech. It’s quite rational that the technology attracts massive attention.
How Important is the Usage of Blockchain Technology in FinTech Industry?
Blockchain technology is perfect for money transfers, in which both parties don’t wish to resort to the conventional services of official agencies and no one is an absolute guarantor of reliability. Therefore, blockchain makes a simpler and convenient option for typical bank transfers. It’s especially important in cases of global money transfers, as the latter are normally charged with additional interests. That’s apart from several days of verifying the client data and converting of currencies.
Blockchain technology is utilized not just in operations along with cryptocurrencies. It’s also utilized in traditional money transfers.
What are the Uses of Blockchain Technology in Banking Services?
Apart from the fact that this technology was labeled “beyond the law,” today you can meet successful and legal examples of the use of blockchain development application in banking. For instance, in 2016, Microsoft and Bank of America decided to arrange a joint fintech startup. It’s a complete software blockchain platform intended for financial transactions.
What are the Alternatives of Employing the Technology in FinTech Services?
Blockchain could become the basis for organizers, consumers, services, and intermediaries of which need enhanced levels of data security. Such include all types of micropayments, money transfers, and worldwide blockchain ecosystem’s participants. That, in turn, are categorized into three major types.
Private Blockchain Systems.
These are represented in the form of applications. They run on the same concept as decentralized autonomous corporations, but they have a series of advantages in comparison. Such applications have more bandwidth and capable of handling hundred thousands of transactions per second. Compared to Bitcoin, limited to seven transactions per second.
- Blockchain Services. Circle, Bittrex, CoinBase and other similar services are exchanges which enable performing transactions in the purchase and sale of the chosen currency. They have legal support from nations in which they’re registered.
- Decentralized Autonomous Corporations. These include enterprises which run cryptocurrencies. One of them is XinFin. The purpose of their creation is to streamline and lessen the cost of making payments, irrespective of the nations in which the participants are situated.
In fact, as a decentralized company, XinFin is more than just a handy tool which accompanies financial transfers. XDC token also functions according to public protocols instead of local laws an anyone has access to their services.
We can confidently tell that the blockchain corporations will be able not just to incorporate with the services given by official banks. In the majority of cases, they may practically replace them. That’s because of lower cost, high reliability, transparency, and efficiency.
Thus, it’s quite natural that blockchain technology may become a disturbing factor for some commercial or government agencies by establishing more affordable options under public control.