Blockchain Technology in Fintech

Let's try to figure out how Blockchain and Fintech are interconnected
19 September 2018   615

Blockchain technology is a new buzzing topic in the market. The technology is affecting the major industries such as Healthcare, Energy, Shipping and of-course companies related to the Fintech. The Fintech companies are undoubtedly transforming and becoming more powerful and emerging industries.

Blockchain
Blockchain

So what is the reason behind such evolution of Blockchain in Fintech industries? How both the terms differ from each other? In this article, we will cover all the questions, arising in your mind related to the Blockchain and Fintech and the relevant information about the terms.

What is Fintech? Fintech is an industry related to the technology and innovation. The main motive of the industry is to conquer the organisations related to finance such as third-party financial services and banks.

Fintech
Fintech

Blockchain is a finance ledger which keeps all the records related to the transactions

The main reason for its popularity is it is the most reliable, trustable, secure and automated. As blockchain gives access to the wide information with no chances of fake or fraud. Also, Blockchain is capable enough to transform the business transaction which in turn reduces the expenses of marketing and encourage to use financial services.

So if you want to be the part of this successful and ever-growing community then you can enrol in the Blockchain course and gain the in-depth knowledge. Through this course, you will be able to solve the business related problems and develop the applications. Also, learn about the terms related to the business such as hyper ledger frameworks, cryptocurrency and programming related to it.

Need to replace the traditional payment method with Blockchain

Nowadays, most of the financial system is facing the problems of fake or fraud and corruption. As the centralised data can be changed, fabricated or deleted whereas, the decentralised ledger i.e Blockchain provides the copies of the data in numerous computers. This, in turn, prevents forgery and reduces the chances of error in the data. The technology is completely based on the “trustless transactions” but it doesn’t mean the transactions are not safe rather you can believe in the calculation of the system. Even the technology avails you the facility of monitoring the transaction in real-time.

Blockchain
Blockchain

Using Blockchain companies can control the risk of manipulation such as in payment processors. Now, what is payment processors? The companies which are specialised to handle the individual payment transactions. The transactions are mainly from debit and credit card because of that companies are unable to control the process.

As per some estimation by the year 2020, because of FinTech around 20% of the financial services will be facing bankruptcy. Due to cryptocurrencies, Blockchain gives the opportunity of P2P transactions. And because the technology is decentralised it avails the facility of transparency and unchangeable and reduces the fees highly.

The records are seen in real-time by Blockchain technology helps in minimising the time for settlement and clearance. As per Accenture’s report, around 30% of infrastructure cost can be reduced just by the implementation of the Blockchain. The payment becomes complex when the number of participants is more. Usually, the clearance process and the settlement process takes two or three days or more, it is caused by the sharing of data through emails and the data storage takes time. As an outcome, time and money both are wasted. Whereas, with blockchain, the data is delivered immediately, solves the problem areas spontaneously.

We can infer that the technology covers almost all the requirements of Fintech objective. Thus, makes it fit for the Fintech industries. So there is no doubt that the number of a follower of Blockchain are in thousands and are still growing.

Wrapping Up

There are various cases where Blockchain and Fintech collaboration has set the benchmark such as in the global remittance market, stock trading, cryptocurrency, Governmental registers and voting and in eCommerce. So, it is very hard to make assumption upto what level it will create the opportunities but it is sure in the upcoming years the collaboration of Blockchain and Fintech will grow. Hence, the step taken in the direction of Blockchain-Fintech will surely be a smart move for personal or professional growth. So, don’t waste time start transforming your business while the others are still in doubt.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   96

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.
 

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.
 

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.