Blockchain technology’s impact on the financial sector
By: Sophia Casey
Tags: Financial Services, Blockchain, Financial Planning, Blockchain Technology, Blockchain Development

The blockchain technology that once started as the underlying framework for Bitcoin exchange now finds a multitude of use cases across the different industrial segments. One of the biggest impacts was felt on the financial sector. Companies like JP Morgan have openly embraced Blockchain technology. The financial sector suffers issues of data security, faster transaction, transparency and other bottlenecks that hamper the growth of the businesses that are relying on the banks and NBFCs for monetary transactions. Hence, Blockchain could be a probable solution here. With the intervention of Blockchain, banks and financial sectors can easily overcome the drawbacks that are holding back the seamless functioning of the banks.

Some of the key transformations that we have seen in the field of Blockchain is the development of Blockchain platforms like Hyperledger Sawtooth, Hyperledger Fabric, Corda etc. this permissioned Blockchain, not only ensures that the system is running seamlessly, but also guarantees that the transactions take place at a faster pace. This eventually makes the banking system work even better and in a more efficient manner.

How is Blockchain impacting the financial sector:

1. Providing a secure platform- One of the biggest problems that most of the banking and financial institutions are facing is the need for a secured platform. Since most of the transactions and other work has now been digitized, most of the banks and other allied companies are looking for a secured platform which is free from any errors or flaws. Moreover, the need for a platform which can effectively combat data breach issues is also on a high rise, and so we have Blockchain. This DLT platform works by time-stamping every information or data on it. Thus ensuring complete security. And with the advent of permissioned Blockchain networks, we are even more assured about the security feature.

2. No third party- Time lag and paperwork are two drawbacks of the financial sector which tends to hold back the processes, and it also eventually impacts the performance of the business. With the help of Blockchain technology, we can overcome these issues and hence ensure faster transactions. Blockchain technology works on peer-to-peer transactions which means that there is no need to rely on a third party for validation and approval, this fastens up the transaction process.

3. Tracking and tracing- These features can be extremely beneficial for the banking companies. Banks spend a huge sum of money in validation and verification, despite all the effort the cases of fake identity, and fraud claims are rising, with Blockchain, we can easily put an end to it. Since tracking and tracing of data become easier, and one can easily trace back the history, it becomes easier to rely on this platform as compared to the conventional technology that banks are using.

These are the three major advantages that the banking and financial sector can reap from Blockchain. Blockchain developers and Blockchain experts are in great demand because of this, and in the times to come, we are going to witness a rise in this number.

Conclusion-

Blockchain Council is offering the best online certificate program in Blockchain. This comprehensive curriculum will let you imbibe all the information related to Blockchain while learning its implementation as well. So what are you waiting for? Enrol for Blockchain certification today.