Blockchain technology in Banking
The rise of blockchain
The Blockchain technology had a dramatic development over the past years. Created back in 2008, the Blockchain technology nowadays has already proven its consistency. It’s no wonder Banks and other financial institutions couldn’t help but pay close attention to opportunities of that instrument. Some of the Banks are only investigating Blockchain, while yet others have already begun to integrate based on it solutions.
Transfers and remittance
The most obvious use case of Blockchain in Banking is payment processing, especially cross-border payment processing. Usual cross-border payment transfer can take up to a week in comparison with an hour that is possible by using Blockchain transaction. Besides, Blockchain technology transfers go with less remittance costs, the absence of third-party, higher security, immutability and absolute transparency.
Blockchain in trading
Another Banking service to be improved by Blockchain is stock exchange and share trading. Traditional process involves excessive bureaucracy and unnecessary intermediaries. The usage of smart contract and multi-signature transaction technologies are capable to revolutionize whole industry by speeding up trading, enhancing performance and simplifying processes.
Much more to come
There are clearly more financial use cases of Blockchain technology that are already exist and just waiting to be discovered. No doubt Blockchain technology has enough potential, so its significance and integration in Banking processes is set to intensify. As we see it, Financial institutions that have decided to stick to the traditional solutions take risks being left out of the future. Hopefully the Blockchain technology is still gaining momentum and there is a little time to join the innovation.
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