How Blockchain Technology is Transforming FinTech, IT & Investment Industries
Technology is becoming smarter and advanced in a relatively short span of time, and the illustrative example is Blockchain. It is the distributed and encrypted technology that has gained significant attention from various industries, whether it’s finance or hospitality. The most common examples are currency exchange, insurance, voting, etc.
When it comes to IT sector, blockchain technology slowly-but-steadily has grown its legs and emerged as one of the leading digital ledgers. Long gone are the days when blockchain was only known as a synonymous with Bitcoin. In fact, the previous year (2017) has been highly successful for this revolutionary technology. Numerous big companies, including Microsoft, IBM, and Oracle, have launched their cloud-based decentralized applications using blockchain development.
Not to mention, this ground-breaking platform is the new frontier to process fast and secure payments, develop smart devices, and interact with networks. So let’s have a peep on how blockchain technology will shape various industries and their niche market in 2018 and 2019.
Impact #1: Blockchain has Shaken Hands with Artificial Intelligence (AI)
Artificial Intelligence (AI) is the hottest trend these days in the market. Companies involved with mobile app development must be familiar with this innovative technology. AI has catalyzed the pace of innovation and achieved runaway success in the technological arena. Now when AI and blockchain have formed a mutual alliance, many companies are eager to know what benefits and challenges will be there in the future. Additionally, they started to contemplate the question “what impact the blockchain development possibly can have on the AI.” To discuss this in more details, blockchain:
- Helps in having a clear audit trail, thereby increasing transparency;
- Provides an unobstructed route to retrace the machine decision process;
- Increases effectiveness by developing better models and yielding positive results;
- Allows easy and secure data-sharing and new marketplaces;
- Boosts machine-to-machine interactions; and
- Leads to the better consensus and data monetization mechanism.
Impact #2: Blockchain has Ensured Quick and Secure Transactions
Blockchain provides a secure identity approach for retailers and other entrepreneurs to safeguard their big data during cryptocurrency exchange. According to experts, the insurance and FinTech companies are going to reap significant advantages from this technology. Not only will it make the claim settlement and negotiation process trouble-free, but will also help firms stamp out the fraud claims. According to the “Blockchain for Social Impact” study, the leading use cases for blockchain technology are:
✓ Reducing frauds and ransomware attacks (38%)
✓ Improving verification processes (26%)
✓ Proceeding secure payments and transaction (25%)
✓ Increasing efficiency (24%)
Impact #3: Blockchain is Positively Influencing Internet of Things (IoT)
Blockchain technology can dramatically improve the encryption, validation, and authentication process. It uses cryptography to record transactions chronologically using timestamp data and an accounting ledger.
Simply put, blockchain is a decentralized, immutable peer-to-peer network that offers improved digital identity verification process to prevent DDoS attacks, thereby securing IoT devices. As predicted by International Data Corporation (IDC), more than 85 billions of IoT endpoints will be connected worldwide by 2025. Additionally, around 25 percent of IoT-based businesses will learn the rudiments of this advanced technology and implement it.
Impact #4: Blockchain will Become its own Asset Tracking Tool
Techies believe that blockchain will also make its way to the asset management industry and gain abundance using its powerful tokenization process. To be precise, the introduction of blockchain will allow users to utilize the tokens to represent the liquid assets, such as marketable securities, time deposits, and gold, in traditional currencies. And the best part is that there will be no trading risk involved in this process. Let’s take a look at the benefits of blockchain technology for asset management:
- It will offer improved data security as well as an unassailable chronicle of all transactions.
- It will provide real-time, enhanced performance in asset tracking and quick insights into data drift and changes.
- It will Increase operational efficiency using blockchain structure, which is one central database.
- It will help in validating clients’ identification, wealth sources, occupation, asset ownership, and other details by providing fast and authorized access to the significant information.
- It will accelerate better communication between asset managers, investors, and third-party entities, thereby streamlining portfolio management.
- It will eradicate counterparty risk as well as the inefficiency in transaction clearance and settling of trades.
Well, after taking into consideration the above aspects, it’s not wrong to say that blockchain surely is going to be the next big hit in the investment industry. Realtors, banks, and real estate companies need to adopt this technology if they aspire to conquer various current challenges of the asset management marketplace, such as restructuring product and service portfolios.
Whether you are a startup or already have a well-established business, if you need innovative solutions associated with the investments, money transactions and e-payments, then contact our FinTech Company in Carlsbad. Call us at (877) 720-0022 or drop a line at [email protected].