A BRIEF DETAIL ON HOW BLOCKCHAIN TECHNOLOGY IS EXPECTED TO GIVE THE FINANCIAL SECTOR A NEW LOOK IN NEAR FUTURE!!
We all learn that for any kind of financial transactions trust is the key factor. But with the world getting digitalized day by day, all financial sectors whether public, private, or commercial are Dependant widely on online transactions. In an on line environment, there are high risks of data thefts as all on line financial transactions involve a centralized authority called the bank that requires our personal debit card and credit card details that can be easily misused by any hacker with today’s advanced technology and also has more settlement fees.
But with the introduction of Blockchain Technology that uses a decentralized approach with its set of digital currencies or cryptocurrencies have reinvented the financial sector in a new way. These cryptocurrencies enable financial transactions directly between customer and merchant without any involvement of third parties like banks or any other authority. This might have made many financial sectors feel that their trust issue is getting disrupted by this decentralized approach, but actually, it is not.
Blockchain not only has lower down the online transaction costs with its digital currencies but also ensure peer to peer transparency as each blocks stores maintains its own record having the token of its parent block which ensures continuity. The correlation of the parent-child block helps in tracking the transaction records easily if required and hence provides better security.
Mxicoders Company and many other leading MNCs across the world have incorporated Blockchain Technology in their corporate industries due to its safe, secure, smart and transparent approach.Blockchain technologies provide greater transparency,enhance security, improved traceability, increased efficiency and speed , reduced cost , decentralization, faster transaction settlement , user controlled net work available and process integrity etc.
Mxicoders with its skilled set of Blockchain Developers believes in providing smart solutions induced with Blockchain Technology to satisfy the client’s requirements and present a future scope of its technological developments as Blockchain is considered to bring positive changes in the financial environment ensuring more profits in near future. Our developers team has expertise in this latest technologies to develop decentralize app, bit coin wallet, ethereum wallet , smart contract development services in India,USA,UK and Canada.
According to mxicoders Blockchain has a positive impact on the following areas:-
- Skillful Trading
In traditional asset management approach, it becomes difficult to keep track when currencies are exchanged overseas or across the borders as each party involved in the transaction have separate copy, but Blockchain eliminates this risk factor with its distributed ledger system where one a single copy is shared among all transaction parties and hence exchanges and trading becomes secure and more flexible.
- Helping the Insurance Sector
The insurance companies in markets are the biggest victim of misinterpreted reputation due to improper data sources, and the traditional method of modeling risk factors associated with the Insurance policies. Blockchain Technology solves this problem with its smart contracts that allows the user to have a complete control of the funds with high-level transparency and detailed financial tracking procedure.
- Effect on Supply Chain
Supply Chain Management is a complete procedure starting from the building of a product to its successful delivery to the customers. Blockchain Technology is expected to outrun the traditional supply chain procedure as it covers each and every detail starting from its origin to every detail till its delivery. In case if the delivery procedure gets delayed it knows from beforehand and comes up with an alternative solution so that customer and merchants don’t face any difficult proving its transparency once again.
Seeing the transparency level and the decentralized approach of Blockchain, we can be quite sure that it will take the financial market to the top position in the next few years eliminating the traditional financial approach.