Blockchain technology disrupting digital banking
One of the most-discussed topics over the past few years is the transformation and digitization of the financial sector. As it is evident, a lot of industries and use cases have adopted decentralization and transformation, blockchain; also known as the Distributed Ledger Technology (DLT), has emerged as a global discussion. The future of the global digital banking world could be shaped by the emergence of the technologies of Blockchain.
However, it is postulated that a traceable and complete global currency typified by an efficient and effective financial infrastructure will not only change the global banking services but also result in massive costs reduction for all the active players in the industry. Blockchain will do for the financial world, what email did for business communication.
Blockchain, also called Distributed Ledger Technology (DLT) appears to have disrupted the Fintech industry as it has captured the wallets and imaginations of the financial institutions throughout the world. More than 3,000 blockchain ledger and DLT patents have been filed in the last three years. According to MarketsAndMarkets.com, the top blockchain Consortium boasts about 50 of the world’s top financial institutions and more than $1.4 billion was made in Venture Capital Investments.
With the Peer-to-Peer ecosystem, powered by the technology of Blockchain, we are moving towards an innovative era of the financial environment which has changed and reinvented a new way of making financial transactions. As it stands now, the future of the global financial world could be without the traditional banking services but with instantaneous confirmation of transactions within seconds which would significantly eliminate any intermediaries, enhance efficiency, and reduce transaction costs.
The early Bitcoin advocates and enthusiasts were mostly cyber-anarchists and libertarians. On the other hand, they also include most individuals and financial service professionals who liked it just because it eliminated the need for banks, intermediaries or other barriers. Not too many believed that Blockchain, the technology behind the world’s famous cryptocoin, Bitcoin could, in its early days, have any influence in the conventional financial services and transactions.
Because all Bitcoin transactions take place without the control of any central authority and on a peer-to-peer framework, this disruption has led to its total adoption that most people now prefer to store and exchange in crypto powered by Blockchain.
Most of the central banks of many nations have shown interest in adopting the technology of Blockchain for future use. This, once it is adopted, there will be widespread use of the cryptographically-stores and secured currencies throughout the world.
