Blockchain Implementation; Finance
A business benefiting from blockchain the most are finance and banking sectors. Financial institutions have operating, working, or business hours, limited to a few weeks. Mostly, they do not serve on weekends. It means that in the bank, depositing money on Friday at 6 p.m. would require the customer to wait until weekday to hit the account. Even during business hours, the transaction process requires at least one to three days to verify it. This is because there are bulk of transactions for the banks to verify. Blockchain in this case, does not have a time limit.
It is very possible to integrate blockchain into the banking system. This way, the customers could see their transaction process in at least 10 minutes. This length is for the blocks process to enter the blockchain. Holiday or not, weekend or weekday, it does not have any delay. Furthermore, blockchain allows the bank to have the opportunity to exchange funds between financial institutions more quickly and securely. Furthermore, in the stock trading business, the clearing process could take up to three days or longer internationally. It means that the money and shares are frozen for the appointed time, said Investopedia.
Blockchain in banking could also protect the sums when the process is in delay. Money transit carries significant costs and risks for the banks. Blockchain could secure it in ten minutes only. In other words, it could help the bank to secure the money during the process of transition to where it arrives.
Blockchain as Cryptocurrencies Bedrock
The Federal Reserve controls the U.S. dollar. In cryptocurrency, Bitcoin for example is the formation of Blockchain. In the case of the Federal Reserve U.S. dollar, it means that the bank is under a central authority system. In other words, the user’s data and currency are technically at the bank or government. If there is a hacker attacking the bank, it means that the client’s private information is at risk. This is in line with the case that if the client’s bank is collapsing, following the government’s instability, the value of the currency could also be at risk. In 2008 for instance, there were failing banks which were partially using taxpayer money. The first development of Bitcoin was reflecting this case.
