HOW MIGHT BLOCKCHAIN BE USED TO SUPPORT NEW BANKS THAT WILL BE INTERNATIONAL MONETARY TRANSACTIONS FOR INVESTOR AND CRYPTO ORGANISATION?

Conventional institutions and ways of banking have become too much time consuming due to the involvement of third parties. With the advent of technology, blockchains have gained popularity as blockchains are able to do the same function within less time as well as without the help of third parties. This makes it easier to transfer data and money without the risk of fraud.

WHAT IS BLOCKCHAIN IN BANKING SYSTEM?

Blockchain is basically a distributed ledger. It can store facts like, who owns a particular piece of land or a bond. The technology can be used to keep an immutable record of ownership and enable transaction of the asset amongst distrusting parties.

WHY BLOCKCHAIN OVER TRADITIONAL BANKING?

Blockchain technology is considered amongst the most revolutionary technologies of the new age and is believed by some as the technology of the future. Though the idea of a shared ledger existed for some time. Centralized banks do share their ledger with other financial institutions including banks but the difference lies in the decentralisation of private blockchains.

The transparency and traceability of blockchain technology can also improve the impact of loyalty and reward schemes as part of performance management systems. After all, employee sentiment and use will only improve if rewards are actually delivered and companies and their employees can agree on whether a certain transaction has taken place.

There are a number of advantages offered by the blockchain system over conventional banking. For instance, Quick transactions, conventional banking is known for time-consuming methods as a third party is always needed. On the other hand, blockchain can do the same in a matter of seconds, the things that would normally take three days to complete. It also reduces transaction costs. Because blockchain makes transactions so much quicker, it renders third parties and their charges unnecessary, which means businesses involved in multi-nation transactions will benefit.

FUTURE OF BANKING WITH CRYPTO ORGANISATIONS

  • EMERGENCE OF CRYPTOCURRENCIES TILL NOW

Today, Bitcoin and its various derivatives are traded both on cryptocurrency exchanges and on major institutional platforms. For example, the Chicago Mercantile Exchange (CME), the world’s major diverse derivatives marketplace, offers Bitcoin futures trading products along with oil, gold, wheat, and other futures.

Between 2015 to 2019, wAn ocean of change in technology is witnessed in the world of finance in the hands of technology, which is both expanding service capabilities and client expectations.

we saw a rise in graphs in the use of cryptocurrencies and blockchain projects emerging. According to Coinmarketcap, by the end of 2019, there were 2389 cryptocurrencies and tokens across the world based on the Ethereum, EOS, and NEO blockchains. We also came across dozens of hard forks, such as Litecoin, Bitcoin Cash, Monero.

  • THE NEAR FUTURE

During the next decade, a new digital economical system is likely to emerge, the following as its main features

  1. Cryptocurrencies will be used as a mode of payment, a safe asset, or as a store of value. Their practical application will be adjustable. State-controlled CBDCs will be established by different governments.
  2. The entire business unit will work on blockchains, such as Etherium or EOS as its basis. Some state-owned companies will be based on CBDCs
  3. New projects and businesses that use their own blockchain ecosystem will be created. The new move will not be like an ICO market, but rather like a regulated area, such as IPO, probably based on state-owned digital currencies.

HOW CAN CRYPTOCURRENCY AND BLOCKCHAINS HELP GLOBAL INVESTORS?

In today’s world where quick access to our needs is highly in demand, banking with the help of blockchains will be less time consuming than the conventional mode of banking for global investors. Blockchain can be the answer to interoperability, trust, and transparency issues in fragmented market systems.

TIME CONVENIENT: Stock market participants such as traders, brokers, regulators, and stock exchange are required to go through a long and tiring process which takes three or more days to complete transactions, mainly due to the role of intermediaries, operational trade clearance and regulatory processes, etc. Blockchain can make stock exchanges much simpler through automation and decentralization. It can help reduce huge costs levied on customers in terms of commission while speeding up the process for fast transactions. Hence , blockchain stands as a time and money friendly system for future customers.

The benefits of blockchain are such that the World Economic Forum has predicted that,

“ 10% of GDP will be stored in blockchain technology by 2025 ”.

Some companies have begun using blockchain technology to improve B2B payments in developing economies.

CROSS-BORDER PAYMENT: As we know blockchain technologies have a way faster and cheaper modes of cross – border payments in contrast to the traditional methods. While the conventional money remittance may be as high as 20% of the transfer amount, blockchain may cost just as a fraction of it and a guaranteed real-time processing speed. Though it passes through different regulations and  security concerns of cryptocurrencies in different parts of the globe it is most talked about and popular blockchain technology

IDENTITY MANAGEMENT: Fraud identities are one of the major security threats to internet bankings. Blockchain provides a tremendous level of security with its independent verification processes that take place throughout member computers in a blockchain network. In digital currency cases, this verification approves the transaction block before adding it to the chain. This mechanism could easily be applied to any verification procedures including identity verification as well as any other application.

CONCLUSION

As we are racing with time, the conventional systems of banking will be overthrown by blockchain technology for its efficiency. Large scale companies and financial infrastructures globally will be welcoming the new technology in financial transfer openly through the process of acceptance would be huge and difficult. The financial institutions need to convince the business ecosystem to accept a decentralized solution. Despite the lack of standardization of blockchain solutions, this technology is here to stay. It allows all assets to be truly digitized and time convenient in the century where time is money.

Contact us for Website DevelopmentSoftware DevelopmentApp DevelopmentBlockchain Implementation

Email : info@ed-aura.com
Contact : +91-7011906731 / +91-7011057972

Address : Unit 202, Business Pluss, Mathura Rd,

Sector 20A, Faridabad, Haryana 121001