Blockchain in Finance
“ Blockchain Will Do to the Financial System What the Internet Did to Media.”Harvard Business Review
“One of the most discussed topics in the financial services industry today is blockchain technology“.Deloitte
Why is there so much talk around blockchain?
In our previous articles, we discussed what is blockchain and how you can raise funds to kickstart your business idea or to finance your existing business. We have also covered the steps that you need to follow to bring your idea to life.
Additionally, we have discussed the benefits of using blockchain and what is the foreseeable future of blockchain.
In this series of articles, we would like to focus more on specific uses cases of blockchain and the and most obvious one is the use of Blockchain in Finance.
Finance is the engine of our economies and businesses. But to have access to the financial system as a business owner up until now one needed to have an intermediary in the process. Most of the times those are the banks as well as other services providers cutting on your profits or increasing the price for the end user of your products.
Be your own bank
With blockchain, you are your own bank. You can create your own account and operate it the way you want. As long as you manage to keep your private keys safe you are safe.
But what exactly are the benefits for business owners to be their own bank?
First of all, you have full control and full access to your funds. 24/7 365 days a year. No need to wait days for a payment to settle. When your customers pay you in crypto (ETH/BTC) you will have your money within a few seconds/minutes.
Second, if you use crypto payments to purchase your stock you can save a lot of money on bank transfers. And third, since crypto payments are all recorded to the blockchain, you can use the records when doing your accounting, thus again you will save time and money.
In addition to payments and money transfers, the blockchain is allowing business owners to run businesses in automated ways using smart contracts. Smart contracts are a series of instructions, written in a programming language, working on the basis of the IF-THIS-THEN-THAT logic, allowing people to have trusted interactions with each other without the need of a third party or an escrow service.
Be innovative and cost-efficient
Because of the underlying technology of blockchain, the immutability, we can guarantee that what we see is the “truth”.
Besides, we can speak of some other benefits of using blockchain in your business. In their report “Blockchain and the Future of Finance” KPMG highlighted a few of those benefits:
Be a leader not a follower
“Using an open-source DLT solution will ensure the appropriate levelsTom Zschach, Head of Technology and Operations at CLS
of confidentiality, security, standardization, scalability, and flexibility required to create a meaningful network effect across the financial industry.”
You might be asking yourself what are the reasons for some business owners not to implement blockchain. Here is a figure that is giving us a more clear picture:
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Also published on Medium.