Blockchain is a revolution in itself. It is rapidly becoming part and parcel of every sector in today’s economy. Not only the healthcare or gaming sector, but it is altogether changing the finance industry as well. Being a distributed ledger system, Blockchain is preferred by many banking and finance sector. Businesses can share data across various platforms without sacrificing security. Moreover, this peer-to-peer networking feature and various forms of cryptocurrencies are changing the world for the Fintech industry. Undoubtedly, Blockchain will be turning the Finance Industry 360 degrees.
Blockchain For Security
This technology will not be used only for mining cryptocurrencies or for Smart Contracts. 2021 is going to offer more. First Blockchain was launched in the year 2009 by the founder Satoshi Nakamoto. After the launch, there is no looking back as this technology is thriving rapidly. It is limited to digital assets transactions or cryptocurrencies, but the finance industry is adopting Blockchain for other purposes.
The finance industry wants to help customers track their assets seamlessly, improve the speed of transactions, preventing cybercrime, verifying the authentication of products or transactions, and securing the organization from unauthorized access from employees.
Using Blockchain with Modern Technologies
Artificial Intelligence is around for a long time but mixed with Blockchain technology, it will give the finance industry an edge. It’s a peer-to-peer decentralized ledger system, which can be operated with the private encrypted keys. But, the use of AI along with Blockchain, will help provide transparency in the financial activities of this industry and automate the decision-making process.
AI will help the finance industries access relevant customer data, and Blockchain will help provide personalized crypto token or digital asset to the customers. Even the transactions will be speedy with Blockchain, and AI will double up the transaction speed by reducing human use.
Blockchain Version of Synthetic Financial Instruments
Synthetic instruments are a replacement for the traditional investment products that do not meet the investors’ sophisticated needs. These synthetic instruments can be used for trading and other banking purposes. In the financial marketplace supported by Blockchain, these instruments will also have their ‘Blockchain version’. Like, Exchange Traded Funds or ETFs will be some of them.
Financial institutes can use Blockchain with other financial instruments like loans, investment funds, and much more along with “insurance web aggregator software platforms.” Here, transactions can be done using Cryptocurrencies. These cryptocurrencies will become part of this financial instrument, and you can invest in a variety of financial products latest and the traditional ones.
The use of digital assets in the finance industry is going to revolutionize the whole set-up. It will be a great breakthrough from traditional financial investments and products. Blockchain is the face of future financial investments, so it will be great if finance industries adopt it quite early. The finance industries can use Blockchain in integration with other technologies like AI, Machine Learning, 5G technology, and a lot more for a financially stable economy.