How Blockchain is Changing the Finance Industry

Blockchain technology in the finance world is making big waves. Blockchain at its core is a digital ledger that records transactions across many computers. This means that once a transaction is entered it can not be altered thus making it very secure and transparent.

Traditional banking systems often are vulnerable to fraud and hack but with blockchain each transaction is encrypted and linked to the previous one making it very much hard for anyone to tamper the data.

This security layer gives more confidence to businesses and consumers in online transactions.

Blockchain helps in reducing costs. It eliminates the need for intermediaries like banks and payment processors which allows for a faster and cheaper transaction.

For instance, sending money across the borders may take several days and charge high fees but with the help of blockchain these transactions can take place instantly at a fraction of the cost.

Blockchain also enhances transparency. Transactions on the blockchain is visible to other users that creates a level of accountability that is hard to achieve with traditional finance. This transparency helps in preventing fraud makes sure that everyone plays by the same rules.

Blockchain also makes financial inclusion possible. Traditional banking services are not available to a large number of individuals worldwide. With blockchain, they can use a smartphone to engage in the financial system. The unbanked and underbanked populations can benefit from this technology by being able to save, borrow, and invest in banking services.

Blockchain is changing the finance industry by increasing security, cost reduction, enhancement of transparency and promotion of financial inclusion. Blockchain has the potential to reshape the way we think about and use money.

@hivepulse

Image Source: Forbes

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