Every once in a generation, comes a paradigm shift in innovation, that changes the way we engage in our daily lives enabled by technology. Be it the Internet in the 1980s or the penetration of smartphones, a decade ago. The Internet and Smartphones have fundamentally changed some of our key actions as human beings! Such has been their impact to human evolution!
Well, Blockchain is another technology rising on the horizon, poised to change the way we deal with enterprises or a government body for that matter. As of today, Blockchain is only being applied to the outer realms of financial services, more specifically, cryptocurrencies.
What is Blockchain?
Quite simply put, it is a grow list of blocks of records which are linked and secured using cryptography, meaning such blocks of records are connected and encrypted for security purposes. In terms of application of the theory, it is an open and distributed ledger that can record transactions between two parties in an efficient manner that’s verifiable and permanent in nature.
How is the Fintech Industry leveraging Blockchain?
In a way, cryptocurrencies are a part of the Fintech Industry and their entire business model is based on blockchain, wherein they offer virtual currency to anyone who can purchase parts of one unit of that currency and keep trading with that part, thereby making money in the process. Buying cryptocurrencies is also considered as a long-term investment by many. The beauty of these virtual currencies is that fact that because they have been built on blockchain, they are decentralized in the sense that there is no central bank governing them.
In Brazil, recently they have managed to lower exchange rates in the currency and bullion markets using blockchain. There are exchange startups who are leveraging blockchain based efficient automation processes to lower exchange rates.
Because of its existing nature of application, blockchain has been at the forefront of some path breaking innovation done by Fintech startups across the world. Whether it is money transfers, currency exchanges or organizations providing infrastructure and transaction protocols that enables banks to provide financial settlement at lower rates, Blockchain is driving new age innovations across the Fintech landscape.
In fact, we at PayTabs have been working on Blockchain as well. We are currently in the process of developing a payment distribution system using Blockchain.
To understand the full scope and power of the payment solution that we offer, you are most welcome to sign up for a free demo. Moreover, please feel free to comment below if you have any questions or any insights.