Also known as distributed ledger technology, Blockchain is gaining popularity and changing the way of making transactions as people are now realizing the true power behind the cryptocurrency system. Blockchain is a digital public ledger used to make secured crypto transactions of various data. Individuals who have authority can view past transactions, add updates, and reconcile accounts, but they can’t change the past transactions. Moreover, the transactions made via Blockchain are hosted by millions of systems, so if any data is lost in between transaction can be easily recovered. This probably increases security and makes the system more decentralized. According to reports by IBM, in 2018, around 91% of banks have already invested in Blockchain solutions. For now, Blockchain is being used in Finance, digital banking, and Fintech industries.
Blockchain for Fintech Industries
According to the reports by PWC on the financial services sector and fintech, more than 75% of fintech companies are planning to integrate Blockchain in their business, by 2020. From $231.63 million in 2017to $6700.63 million in 2023, the blockchain fintech market is growing annually with a CAGR of 75.2%. On the other hand, the MRFR reports conclude that to improve capital optimization, enhance transparency, counterparty risks, and reduction error handling, around one of every three fintech organization is planning to adopt blockchain solutions. Blockchain will be playing an important role in various sectors like Anti-money laundering(AML), counter-terrorist financing, cybersecurity, and Operational Risk Management(ORM). By the end of 2019, the market for mobile banking and payments through were about $90 billion.
Advantages of Blockchain for Your Business
Transparency, immutability, decentralization, and security are some of the most important advantages of Blockchain. Some other ways in which Blockchain can be beneficial for your business are discussed below.
The data in the Blockchain cannot be altered or deleted as the data-structure of Blockchain ha property of append-only. With Blockchain, you don’t have to be dependent on third-parties for verification.
Since all the blocks in Blockchain are time-stamped, due to this, the transactions are stored in chronological order. Blockchain is decentralized because the data in the block is stored in millions of system, so there is no condition that the data which is lost cannot be recovered.
In order to secure the data ledgers, Blockchain uses the cryptography process. To trigger an automatic transaction, the business can pre-set conditions, and whenever the conditions are met, transactions are triggered automatically. Only the individual's who have authority can view the transactions, which makes the process of blockchain secure and transparent.
To completely eliminate the risks of duplicity and fraud, various consequences are required for entry validation. Since the ledgers are spread across each node and can be accessed by every participant, this makes the process of Blockchain decentralized.
How Business Niche Can Benefit from Blockchain Technology?
Now as the advantages of Blockchain are discussed, let’s see how businesses can benefit from this technology.
In order to transactions get triggered automatically, there are some conditions that need to be fulfilled. As soon as the conditions are met, the transactions are automatically triggered. For better understanding, let’s take an example of insurance claim pay-out. The insurance companies can set some conditions which need to be fulfilled to claim insurance money. The insurance amount is only transferred when the conditions are fulfilled.
Reducing cost is of the topmost priority for most of the business niche. With Blockchain, you don’t need any third-party or middlemen for authorization or verification or to make guarantees. Moreover, you don’t have to waste much time in documentation as the participant has fixed permission or authority in the transactions.
Due to Blockchain technology, the transactions are turning more transparent for users. Since Blockchain is a distributed ledger process, each and every participant included in the transaction process shares the same documentation authority, which means that in order to make any changes in the transaction, permission from every participant is required. This makes the data in the Blockchain more accurate, consistent, and transparent during the transaction processing.
There are several ways Blockchain is greater comfy than different record-retaining systems. Transactions must be agreed upon earlier than they're recorded. After a transaction is permitted, it's far encrypted and connected to the preceding transaction. This, at the side of the fact that information is stored throughout a community of computers in place of on an unmarried server, makes it very difficult for hackers to compromise the transaction facts. In any industry in which protective sensitive statistics is essential — monetary offerings, Government, healthcare — Blockchain has a possibility to really alternate how important information is shared by using helping to save you fraud and unauthorized activity.
When you use traditional, paper-heavy strategies, buying and selling whatever is a time-eating technique this is susceptible to human blunders and regularly calls for third-birthday party mediation. Via streamlining and automating those strategies with Blockchain, transactions may be finished faster and greater effect. On the grounds that document-retaining is accomplished using a single digital ledger that is shared amongst participants, you don't reconcile multiple ledgers and also you turn out to be with much less clutter. And while anyone has to get entry to the same data, it becomes less difficult to accept as true with each other without the need for several intermediaries. Hence, clearing and agreement can occur plenty quicker.
Industries are already aware that Blockchain technology is going to disrupt the existing technologies with its revolutionary features. Fundamental financial businesses are convinced approximately blockchain’s ability to spin in new modifications inside the economic services industry. Obviously, there additionally lies a destiny for digital currencies. According to KPMG, there has been a rise of $544m inside the venture capital funding in Blockchain corporations inside the year 2017. International over, banks in Canada, Europe, and different international locations – a number of the ones being IBM, secure key, HSBC, Deutsche Bank, and KBC – are the usage of blockchain to area their clients’ identities on it as well as developing a blockchain system for alternate finance. This definitely suggests the reliance located on blockchain and its ability for making innovations come alive even as riding business.