Payment from Ukraine to the U.S. in 60 minutes: how blockchain is trendsetting the new fintech reality
Blockchain technology has long been more than just associated with cryptocurrency. Global companies are testing it in a wide variety of applications, from identity information management and anonymous communication to international payments and the Internet of Things. The basic principle of blockchain is cryptographic encryption, which helps hide information in a distributed registry from unauthorized users. Because each user has a copy of the registry on his or her computer, it cannot be tampered with or edited. Let’s see what changes blockchain has brought to the modern world and how it has affected fintech.
The market economy is now tied to the help of intermediaries. We are talking about a variety of processes: document creation, identity verification, paperwork. At the same time, the World Bank gave a report four years ago, which stated that 2 billion people did not have access to financial services. They could not get a bank card, get life insurance, get a loan, which means that these people do not participate in the global economy. At the same time, with blockchain technology, they can improve their lives and increase their income. Financial inclusion will help create jobs, provide credit to improve businesses, and discover new technologies, which in turn improves the global economy of the country and the world.
Technological solutions in the fintech sphere are expanding every year. Statements, checking account balances, money transactions, paying for government services, the basic functionality of banking is no longer the determining factor in choosing a bank, as it is available to almost everyone. However, when a new type of service appears it automatically increases customer expectations, respectively, the overall level for all market participants increases. The struggle for customers has led to the creation of separate laboratories for the invention and implementation of new technological solutions. It is unlikely that anyone expects to solve all the primary fintech issues with blockchain, but it definitely has a future.
The technology reduces the risk of transactions and spending. The speed, availability, and transparency of transactions are the main benefits of using blockchain. The privacy that emerges allows the development of a truly independent financial system, where each user has personal control over his or her assets. In this way, the system is able to provide equality for all participants. Technology reduces government bureaucracy and is successfully used where the risks of corruption are high. Take Georgia, for example, where blockchain has been used to register real estate for several years and is now considering introducing the technology into the fiscal and educational system. South Korea uses blockchain technology to identify citizens and plans to digitize all industries. America is also trending, but some experts say it is not doing enough in this direction. The founder of the cryptocurrency platform Ripple criticized the U.S. authorities for their delay in implementing blockchain technology and regulating its operation.
Unlike banking institutions, technology doesn’t have days off or holidays. So you can get the services you need at any time. The speed, the security of transactions, it’s all in blockchain’s favor. Transferring money to another country can take anywhere from a few minutes to a few hours, and confirming transactions avoid fraud. Transparency makes it possible to conduct any kind of transaction, invest from the comfort of your own home, and even validate copyright in digital content.
Blockchain technology affects, among other things, the art world and helps solve various problems of transparency, property rights, transaction security and provides the infrastructure to tokenize objects. For these reasons, unconnected tokens or NFTs have become a major news trend in 2021. It’s all thanks to DLT’s distributed database technology.
Trends in Ukraine’s fintech sphere correspond to global ones. The banking industry continues to digitize, which has become a necessity for survival. Companies are constantly working to improve the user experience through the implementation of AI and machine learning to help better identify customer needs. The security of international transactions, identity verification can be improved through the implementation of blockchain technology. The pandemic years have shown the need for rapid digitalization, and soon we will see how this will improve our user experience at all levels.