Fintechcould be defined as an industry of technology that is or could be applied tothe financial world. It is the technologies that will help companies manage
their financial aspects including the business processes and models. Fintech is
not new. It has been there for a decade now, acting as the basis for end-to-end
processing of financial transactions.
Currently,
Fintech uses the Internet via cloud services and stores all the important
information on the servers which are prone to a data breach. The details of a
user are held with the bank and an individual has no control over the security
of their own information. Authentication methods and secured transmission are
the major issues faced by Fintech at the moment. Ensuring the authenticity and
identity of the person signing the documents, supervisory controls on the
financial markets, transaction control, insurance claiming processes, etc. are
some of the issues created due to the oversight of the financial industry.
This is where blockchain comes in to solve all these problems. With the application of
blockchain in Fintech, all the data available will be decentralized. All the transactions
taking place will be authorized by the miners, making it immutable and
unhackable. With the help of the public ledger, all the transactions recorded
will be on the chain and validate each and every other transaction, making it
reliable and secure. The blockchain technology will discard any third party
trying to get a hold of the data and make it a peer-to-peer transaction, giving
everyone complete control over their data security. The transparency that an
irreversible ledger provides would make financial operations smooth-running.
Moreover, the ability to create smart contracts would significantly decrease
the possibility of defaulting on payments. This way blockchain would reinvent
the way the Fintech industry operates, making it more secure and stable than
before.
Codezeros is one such company that designs and
develops blockchain-powered enterprise solutions for smart contracts, supply
chain finance, insurance, and others.
If you need any assistance for Blockchain integration,
Contact at +91 9638998419, +1 3152458590, or https://bit.ly/2QXdhef
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