Is Blockchain the future of finance?
Blockchain technology, one of the most talked-about technological developments of recent times, has paved the way for a new set of opportunities for all. Blockchain courses, training programs, and Blockchain certifications are new buzzwords that are framing the career path. The primary reason for the rise and use of DLT technology is its innumerable set of advantages and features. One of the key areas of application of Blockchain is the finance sector. The technology provides a safe and secured platform for the exchange of cryptocurrencies. There is no third-party governance, making it a prospective medium of exchange for monetary transactions and data exchange. But the biggest question that is hovering over this technology is its sustainability in the long run. Let’s try to answer this question in this blog.
Blockchain the future of finance
The distributed ledger technology is driven by peer-to-peer interaction. In simple words, it eliminates the dependency on the third party and promotes direct exchange of money between the two parties. Besides, the encryption of data ensures complete data safety and security. All this makes it a probable solution to some of the key problems of the digital platforms of money exchange.
Some of the key areas of banking and finance where Blockchain will fill in the gap are in KYC, claim settlement, cross-border transactions, and enhanced speed of transactions.
The key reason why Fintech companies are focussing on Blockchain is because of the cost-effective solution that it provides. Cross-border transactions are usually driven by the process of validation, approval, and processing fee; all this takes in a lot of time and money. With Blockchain intervention, companies are eyeing the best alternative. Blockchain is a decentralized technology. Aided by the peer-to-peer interaction, this technology is slowly paving the way for a better alternative to the conventional transaction method.
Although there were apprehensions surrounding the public Blockchain, which easily made everybody a part of the system, with the surge of private Blockchain like the Hyperledger fabric, the system has become far more secure. This system gives authority to certain governing bodies of people in the management to approve the people to be a part of the network. Thus ensuring the safety of the system.
What’s next?
There has been a significant development in the field of Blockchain, and this development is aided by some of the big names in the commercial banking system. Although DLT-driven transactions have become popular, the pace of adoption is not that fast when it comes to the acceptance part. It depends on the business process, regulatory compliance, and willingness to adopt this new transaction methodology.
Conclusion
Compared to the other technologies we are working on, Blockchain has a recent origin and is still undergoing developments. One of the examples is the development of private Blockchain. Blockchain developer are continuously working on this technology and evolve it. Thus, opening the gateway of opportunities for skilled Blockchain professional. If you are willing to be a part of this system, it’s time to enroll in the Blockchain certification program by the Blockchain Council.
