Feb 24, 2019 23:30 UTC
Feb 26, 2019 at 04:07 UTC
Why Will Finance Sector Lead In Blockchain Adoption?
Whenever we discuss use cases of blockchain technology, the finance sector seems to be at the forefront of it all, claiming one of the fastest rates of adoption when it comes to this stellar technology. Have you ever wondered why the finance sector seems to be leading in blockchain adoption? Today, we find out exactly why.
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Blockchain has extremely diverse use cases, ranging from healthcare to music, supply chain to charity. However, in the midst of all the new use cases that keep emerging, the financial world has held on to its position as the primary field of application for this decentralized and incredibly secure form of distributed ledger technology.
The following are some of the reasons why:
1. Blockchain Began As A Part of Financial Technology or Fintech
As all crypto and blockchain enthusiasts would know, blockchain itself is quite different from cryptocurrencies.
However, the truth remains that the proper, concerted beginning of the blockchain technology had begun hand-in-hand with Bitcoin, a cryptocurrency, an alternative to fiat currency, a challenge and a substitute for the financial world.
Clearly, blockchain began as a way to infuse security and decentralization into the world of finance and save it from the clutches of the conundrum that had gripped it back in 2008, when Bitcoin was developed and prepared for its big reveal.
2. Security of Blockchain Is Paramount In Finance
The security that is provided by blockchain technology is paramount in the world of finance.
By preventing unauthorised access or tampering of information, a blockchain network deals with financial transactions with the level of sensitivity and security it requires and deserves.
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3. Cross-Border Payments Are A Major Area of Application for Blockchain
With blockchain-based networks and cryptocurrencies like Ripple and Stellar in place, old systems like SWIFT will soon be on their way out.
Blockchain and cryptocurrencies, by virtue of the sheer ease they allow in terms of access to data for all stakeholders, can become even more instrumental in facilitating cross border payments than they already have.
4. Transparency and Accountability in Finance:
Blockchain, by removing the need for employing and trusting middlemen who may be prone to corruption and/or mistakes. Finance is a field that must treat funds with the highest degree of cautiousness.
By taking away the need to trust, blockchain facilitates this requirement and meets the basic need of the finance sector quite perfectly.
Therefore, the finance sector will clearly be one of the leading areas of blockchain adoption because its needs fit the solutions provided by blockchain tech like a jigsaw puzzle.
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