As you are well aware, Fintech is continually evolving. Look at how far we have progressed since the early 1900’s. Starting with the first ATM machine, we have progressed to online banking, electronic card payments, and even payment processing solutions using our smartphones! In recent years, a new type of Fintech has emerged, and is set to disrupt traditional financial processes and potentially revolutionize the way we do business. We are, of course, talking about blockchain technology. Blockchain technology is one of the most important Fintech developments in recent history, and has a huge potential to change how we process online transactions. It was utilized almost instantly by online casinos that could provide provably fair games and overcome some territorial restrictions, even though you should do your research before venturing into crypto-gambling.
Otherwise, companies like Expedia and Microsoft began accepting Bitcoin payments and many banking and healthcare organizations started dabbling with the underlying blockchain technology for faster payment processing and data storage. So what is this technology and how is it already being used in the world of business? In simple terms, blockchain technology is a form of decentralized P2P network that facilitates online transactions. During a blockchain transaction, an initial request is sent which is broadcasted across the P2P network. This request is then validated and combined with an existing block of data to form a chain. The transaction is then marked as complete. Blockchain technology is fast, efficient, inexpensive, and secure. Furthermore, as it uses a decentralized network, there is no central control and thus potential for bias or market corruption. Although blockchain technology is still in its infancy, we are already seeing its deployment in a wide variety of industries including healthcare, banking, insurance, cloud technologies, voting, and real estate. The infographic below provides information relating to this technology and how it is changing the way we look at online transactions.