Blockchain technology has been one of the biggest surprises of the past year. For example, cryptocurrency pioneer Bitcoin closed 2017 at nearly $15,000. As Bitcoin's popularity continues to grow, more blockchain innovations and cryptocurrencies have emerged from the shadows. Now, it's almost considered mainstream. Investors and fund managers have since flocked to the fintech blockchain.
However, blockchain is not just what drives digital assets. That's why financial professionals need to pay attention to how their industry is changing. Now, five ways blockchain innovation will reshape the financial system.
1. Pay with cryptocurrency
First, one of the most exciting applications of blockchain is its ability to facilitate financial transactions in a completely different way compared to traditional financial systems such as credit card traditional payment processors. More recently, the rise of cryptocurrency technology has made cryptocurrencies viable currencies.
Currently, over $500 billion in cryptocurrencies exists. However, current owners have limited ways to spend. A startup, OPEN Platform, is solving this problem. They created a payment solution for app developers so developers can easily integrate and make their apps accept cryptocurrencies as payment.
2. System integrity
Second, the biggest benefit of using blockchain is system integrity. Cryptocurrencies and blockchain technology eliminate the need for middlemen. As a result, these middlemen tend to make overly complex payments and charge expensive fees outside of large transactions. Therefore, the design of the blockchain is inherently secure.
A blockchain is a decentralized ledger. Therefore, no one other than the two parties involved in the asset transfer will see the transaction. Furthermore, crypto wallets are largely immune to fraud due to their complexity .
uniqueness. So stealing assets is difficult. These assets cannot be counterfeited.
For example, the Internet Services Foundation has created a scalable blockchain infrastructure for the future of online business. Its high-throughput processing and security provide an interesting alternative to mainstream cryptocurrencies such as Bitcoin and Ethereum. To date, these cryptocurrencies have been unable to scale to mass adoption. The Internet Services Foundation’s token IOST has apparently caught the eye of blockchain enthusiasts around the world. At times, the daily trading volume reaches $200 million.
3. Regulatory issues
Third, the use of blockchain in cross-border transactions is particularly exciting for those interested in business finance. One of the main advantages of fiat-to-fiat with cryptocurrencies is that they can be sent across borders for free. For example, money transfers can be made between any two locations in the world. All users need to be connected to the Internet.
Therefore, blockchain technology has the potential to provide a more secure experience than traditional wired services. Additionally, users can avoid conversion fees between currencies. Small online businesses can also transact more easily than ever. This is because cryptocurrencies avoid currency conversions that require large sums of money on both sides.
4. Mainstream Banking Adoption
Fourth, large banks have begun to develop infrastructure to support new assets and payments .
uniqueness. So stealing assets is difficult. These assets cannot be counterfeited.
For example, the Internet Services Foundation has created a scalable blockchain infrastructure for the future of online business. Its high-throughput processing and security provide an interesting alternative to mainstream cryptocurrencies such as Bitcoin and Ethereum. To date, these cryptocurrencies have been unable to scale to mass adoption. The Internet Services Foundation’s token IOST has apparently caught the eye of blockchain enthusiasts around the world. At times, the daily trading volume reaches $200 million.
5. Financial Automation
Fifth, the most interesting application of blockchain is the potential to provide a system where users can automate payments and optimize their finances. For example, by using embedded smart contracts in a blockchain ledger, financial institutions can easily and efficiently collect insurance and mortgage payments. So the result means more on-time payments. Additionally, consumers can spend less time organizing their finances.
Now, blockchain technology continues to gain popularity. Therefore, it will be important to monitor how its application affects all industries. The rise of cryptocurrencies has attracted investors and financial institutions. Now, the financial industry is poised to reap the most immediate impact from blockchain innovation.
Today, various companies and groups are developing smarter blockchain networks, better cryptocurrencies, and improved infrastructure. Looking ahead, blockchain technology will completely reshape the financial industry within the next decade.
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Parts of this article are compiled from Due 's article on the Entrepreneur website.