How blockchain and crypto are disrupting the financial sector

Copyright © Blockchain Council www.blockchain-council.org
How Blockchain and Crypto Are Disrupting The
Financial Sector
The finance sphere is undergoing a radical shift. Organizations across the globe
are left with no choice but to adapt and conform to the evolution of the financial
systems. People all over the world are expecting significant changes in the way
money is transacted and managed in the future.
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A blockchain is a time-stamped series of an immutable record of data managed by
a cluster of computers that are not owned by a central authority. A blockchain is
transparent, and everyone involved is accountable for their actions.
Cryptocurrencies are digital or virtual currencies secured by cryptography.
Cryptocurrencies can also be thought of as decentralized networks that are based
on blockchain technology.
In this article, we will understand how using blockchain and cryptocurrency in
finance will make a huge difference to the whole system.
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1. Reinvent The Transfer Process
To make a financial transaction today using national currency, there is always the
involvement of a third party like a bank or credit card firm. This involvement refers
to the administration and transaction costs to the beneficiary and the payer. Using
a blockchain system for money transfers will remove the need for the involvement
of third parties.
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This will then become a peer-to-peer transaction that does not involve
administration and transaction costs. This will help facilitate micro-transactions
and higher rates of productivity. Eliminating middlemen from the money transfer
process will lead to the democratization of control mechanisms.
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2. Keeps Companies and Individuals
Accountable
If something goes wrong or if any mistake is made in the current financial system
in terms of money transactions, the blame game will begin immediately. The fault
can be with anyone: company, bank, or the individual. A proper investigation must
be conducted to find out what went wrong and who is liable. Most often, the
investigations are lengthy and not objective.
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This might lead to the involvement of other parties such as regulators, the justice
system, and lawyers for reaching an agreement. There will be no need for an
investigation if the transactions are carried out using a blockchain system. The
transaction logs can be immediately checked to identify the issue and find out the
person who is liable for it. This will reduce the time and costs of resolutions.
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3. Inclusion Of Billions of Unbanking Individuals
In the Global Economy
According to estimates, approximately 2 billion people across the world do not
own a bank account. This implies that 2 billion people are shut off from the rest of
the world, from the entire global economy. They will not have access to banking
services like debit or credit cards, loans, investments, and the chance to save
money. Blockchain and cryptocurrencies already provide access to some of these
services.
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4. Loss Of Government and Institutional Control
Everything related to finance today, right from interest rates to the amount of
money people can withdraw from their personal bank accounts, is controlled by
governments and financial institutions. Blockchain gives people full control of their
financial assets. As we all know, money is power. Less control over money would
imply less power to governments and institutions. This will facilitate the equal
distribution of wealth and diminish financial inequality drastically.
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5. Giving People Control Over Their Money
We are all living under the illusion that the money deposited in our bank accounts
belongs only to us. But under certain circumstances, governments have the right
to freeze bank assets as they please. Allowing minimum access to money leads to
the bankruptcy of countless individuals and businesses. Blockchain helps
eradicate this threat through the absence of third parties. This allows users to start
functioning as their own bank.
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Conclusion
The ability of innovation and imagination to change the world must never be
underestimated. The popularity of blockchain and cryptocurrencies is increasing
more and more every year. I hope you have now gained an idea about the use of
blockchain and cryptocurrency in finance. To learn more about blockchain and
cryptocurrency certifications, check out Blockchain Council.
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Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
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● Certified Ethereum Developer
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THANK YOU!
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How blockchain and crypto are disrupting the financial sector

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