By FintechNews staff
-A blockchain is a decentralized, unchangeable database that enables the recording of network transactions. Blockchain technology provides for the permanent recording of transactions in a block. It eliminates the presence of third parties.
– Blockchain technology can transform regular financial processes into entirely transparent procedures built on secure and efficient transactions.
-With blockchain technology, users can finally recapture full control of their wealth. Through the use of blockchain technology, wallet holders who possess their private keys are the sole owners of their assets – unlike with traditional currency, there are no banks that take the responsibility of holding your money.
–Customer data storage: After a company has gone through the know-your-customer (KYC) process with a new client, it would add that client’s data to the blockchain. Other companies could then use that KYC data instead of going through the process on their own.
–Money transfers: Financial institutions that use blockchain technology could offer more efficient money transfers. Those international money transfers that sometimes take hours or days could happen in a matter of seconds and without expensive fees.One prominent example is Ripple, a company that uses blockchain technology for RippleNet, a global payments network. RippleNet transactions process within five seconds and cost just a fraction of a cent.
–Decentralised or private databases: using BlockChain could allow to immediately check and verify if the information/asset/ownership declared by the counterpart is real and verified simply by checking the relative block in the chain. In banking transactions, it could mean making the clearinghouse and most of their processes redundant, quite a big saving
–Fraud: Financial companies are always targets for fraud. Blockchains use cryptographic algorithms to process and record transaction blocks. This cryptography could be a way for financial companies to reduce the level of risk when processing transactions.