Technology

Impact of Blockchain on Financial World

All over the world every manager, director or committees think about what will be with their businesses in the future after Blockchain taking over the whole world. The most discussed technology in the banking sector at the moment is Blockchain. Leaders of major financial institutions, companies, and organizations believe that distributed ledgers can seriously change the banking landscape.

The paperwork of transactions hinders the development of the global trading industry, and moving away from this slow and expensive system is expected to save a tremendous amount of time and money. Regular trading requires a large amount of paper to maintain communication between brokers, forwarding companies, logistics providers and government agencies.

It is easy to understand that Blockchain technology can optimize these processes, bringing benefits to all interested parties. With today’s number of participants in trade chains, it is difficult to track and verify the necessary information, especially if it is transmitted in paper form.

This is where the advantage of distributed registry technologies lies. Interested parties provide confidential information available only to participants in the transaction, receiving, in turn, the necessary data in real-time.

Banks, financial regulators, and fintech corporations are currently exploring the possibility of developing special Blockchain protocols where parties can have different roles and different levels of access to the register.

For the first time money was issued not by the state, but by people. And the meaning of the Blockchain is that people themselves can control many processes, and they don’t need states, banks, they don’t need those who served communication between people. And we get a technology that allows us to make a social and economic revolution, eliminating the central regulatory “expert” structures from economic life and creating direct relationships between people, between producer and consumer, and this will greatly change the economic system. Investing crypto money has minimal risk, in comparison with other currencies.

Even at this stage of technology development, the speed of bank payments and various transfers has increased several times. Based on this technology model, it is possible to make various payments wherever you are at any time. And it is with the help of the Blockchain that such transaction processing becomes real without intermediaries and additional costs.

In the simplest case, the Blockchain allows the parties to jointly create a constant, unchanging and transparent report on the exchange and processing, without relying on the central authority. Where previous generations of digital technologies related to data and information, and how to exchange them faster and more safely, the Blockchain is engaged in the exchange of value and how to make it instant and decentralized. Metahash is one of the best examples to show what the Blockchain is and what are its peculiarities.

In this context, many people see the Blockchain as part of the digitization process that has been going on since the 1960s, as shown in the table below. But at the same time, when the Blockchain is undoubtedly part of this process, it is also a dramatic departure from it. Previous technologies consisted of faster and more efficient execution of existing business processes. Blockchain technology completely redefines how business processes are implemented, and even how they were originally developed.

According to some experts, if you implement Blockchain in the banking system, the process of exchanging money will become much easier. Besides, Blockchain transactions in the banking sector can also find the wider application – for example, legal support of financial transactions. Insurance companies are also certain intermediaries in the financial sector. Even insurance companies can benefit from Blockchain technology. They will help to several times increase the speed of payment of various contributions and simplify all the processes associated with transactions.