Cross-Border Payments
Payments are the first and foremost use case of any banking and/or financial system. When it comes to blockchain finance, both central and commercial banks all over the world are now tapping into this new technology in terms of payment processing and potential issuing of their own digital currencies.
Cross-border payments are faster and less expensive with bank blockchain than with traditional systems. For example, remittance costs within blockchain are 2-3% of the total amount, as compared with 5-20% withheld by other third parties. Besides, as we have already mentioned, blockchain does not require third-party authorization, thus significantly speeding up the cross-border payment process.
Digital Identity Verification
Online financial transactions are impossible without identity verification. However, this verification requires a lot of steps to be taken, such as face-to-face checking, authentication and authorization. All of these steps need to be taken for each new service provider. However, blockchain makes it possible to securely re-use the identity verification for other services.
With blockchain in fintech, users can choose how they identify themselves and with whom they agree to share their identity. They still need to register their identity on the blockchain, but they do not need to repeat the registration for each service provider if those providers are also powered by blockchain.
Accounting and Bookkeeping
Accounting is another domain that can be transformed with the power of blockchain technology finance, from simplifying the compliance to streamlining the traditional double-entry bookkeeping.
Instead of keeping separate records based on transaction receipts, companies can write their transactions directly into a joint register, with the entries distributed and cryptographically protected. As a result, the records are more transparent, and any attempts of forging are almost impossible. Think of it as of an “electronic notary” verifying the transactions. In addition, blockchain’s smart contracts can be used to automatically pay invoices.
Standardization with the help of blockchain would allow auditors to automatically verify the most important data behind financial statements and thus decrease the costs and save time.
Supply Chain Management
Blockchain’s immutable ledger makes it well suited to tasks such as real-time tracking of goods as they move and change hands throughout the supply chain. Using a blockchain opens up several options for companies transporting these goods.
Entries on a blockchain can be used to queue up events with a supply chain – allocating goods newly arrived at a port to different shipping containers, for example. Blockchain provides a new and dynamic means of organizing tracking data and putting it to use.
Real Estate
The average homeowner sells his or her home every five to seven years, and the average person will move nearly 12 times during their lifetime. With such frequent movement, blockchain could certainly be of use in the real estate market.
It would expedite home sales by quickly verifying finances, reduce fraud thanks to its encryption, and offer transparency throughout the entire selling and purchasing process.
Voting
Blockchain technology has the ability to make the voting process more easily accessible while improving security. Hackers would be no match to blockchain technology, because even if someone were to access the terminal, they wouldn’t be able to affect other nodes.
Each vote would be attributed to one ID, and with the ability to create a fake ID being impossible, government officials could tally votes more efficiently and effectively.
Cybersecurity
Our money is transferred instantly via virtual bank accounts, our informational sources are vast and thorough and even online orders are delivered the next day. The amazing expediency of the digital age comes with a cost, however. Namely, our privacy.
Our dozens of accounts spread throughout the web and protected only by often weak passwords include bank accounts, health records, birthdays, social security numbers and passport information.
The biggest advantage for blockchain in cybersecurity is that it removes the risk of a single point of failure. Blockchain tech also provides end-to-end encryption and privacy.