Blockchain technology has its own history, because earlier the analogue was a regular cash book, which gets checked by the regulator. Today, all activity of the banking financial system is managed and coordinated through its own internal registries. Blockchain technology is notable for its transparency, which of course will change the global currency market once and for all.

How can blockchain change the current banking system?

How can blockchain change the current banking system?

If banks begin to use blockchain, the quality of their work will improve markedly:

  • transaction waiting time and cost will be reduced;
  • the process of access to capital will be greatly facilitated;
  • data security will reach a new level;
  • smart contracts will ensure mutual fulfillment of obligations of the parties;
  • compliance becomes smoother.

The advent of blockchain technology will happen quickly enough, which will significantly reduce the number of bank employees to a staff of 50 people. The rest will be replaced by autobots, processes and smart contracts.
Is it possible to trick the registry? From the experience of Bitcoin Cash, we see how such attempts end. The entire registry is one, it is located in peer-to-peer networks, the system strictly responds to changes and removes inconsistencies. Everything is signed by a hash protocol, which consists of two parts:

  • Introduced by the system;
  • Deductible from the previous block.

It is impossible to change information in a historical context, and this is one of the main principles of blockchain technology.

Key benefits of blockchain technology in banking and finance

Key benefits of blockchain technology

Safety. The system architecture based on the blockchain eliminates the existence of a single point of failure and reduces the need for data transfer through intermediaries.

Transparency. The blockchain standardizes all internal processes and creates a single, common, reliable data source for all network participants.

Confidence. Transparent registries simplify collaboration and agreement between various parties to public relations.

Programmability. Blockchain allows you to automate all business processes by creating and complying with smart contracts.

Privacy. The technologies of private information circulation, which are provided for in the blockchain, allow selective data exchange directly between business partners.

Performance. The networks are built in such a way as to support a large number of transactions and ensure compatibility with other chains, creating an interconnected world wide web of blockchains.

Blockchain fast financial transactions

Blockchain fast financial transactions

Today, sending money is a complex and lengthy process, for which a commission is withdrawn not only from the bank, but also from the client, sometimes such an operation needs additional verification and administration.
On the blockchain, money transfer is much faster, payment transactions can be implemented at any time of the day and for a lower commission.

Blockchain Fundraising

Initial Coin Offers (ICO)

The process of registration of investments is quite strict and may include lengthy negotiations about the assessment and distribution of capital for entrepreneurs looking for funds to develop their business.

Initial Coin Offers (ICO) and Initial Exchange Offers (IEO) offer developing projects the opportunity to raise funds without the need for the services of banks and other financial institutions. ICOs allow the company to sell tokens to investors in exchange for financing, expecting future income.

For the assistance in the initial public offering of shares (IPOs) and business securitization, banks charge a large commission, while blockchain technology opens up completely different opportunities for investors and entrepreneurs, avoiding unnecessary expenses.

The relative simplicity of creating an ICO allowed projects to raise large sums of money without any formal or specific evidence of their activities regarding the development of the promised product. At the moment, the ICO market is unregulated, which leads to high financial risks for investors.