The term "Blockchain" is now on everyone's lips, but not everyone knows what it really is. Blockchain is not just a new-fashioned word or technical jargon, it is a technology that has made a real technological breakthrough, which has affected almost all sectors of the market and, of course, this technology has seriously reformed the sphere of financial technology or fintech. But before we talk about how financial technologies will change with the advent of decentralized Blockchain platforms, we need to understand what Blockchain is in principle. We will also talk about the possibility if fintech transaction speed will watch up to blockchain.

Blockchain in various technologies

Blockchain is gaining a foothold in various fields and we should note that one of the most notable benefits of it goes to the Forex industry. Blockchain could improve the ECN Forex brokerage industry. Some people still do not understand who are true ECN forex brokers and what they do, but to put it simply transaction speed will improve notably if it is adopted to its maximum.

Blockchain, fintech, decentralization

So what does the emergence of decentralized platforms mean in practice? In fact, Blockchain is a digital registry of transactions, transactions, or executed contracts. It can store any data that needs a separate record and verification capabilities, from credit histories to marriage and divorce. The advantage of storing data in this way is that the registry is distributed across hundreds and thousands of computers, which means that the information stored in it remains transparent and always relevant to all users of the network.

The way Blockchain works can be compared to the work of the Internet. You're posting information online, and users who have a link can access it regardless of where they are. So here: the information contained in the block of the chain can be obtained by all users of the network who have access to it, anywhere in the world. To access this information, you must have a special private key. This makes storing data in the chain secure and completely secure. Actually, here we came to the answer to the main question - how will the fintech industry change with the advent of Blockchain?

Of course, today decentralization technology is especially widely used in the cryptocurrency market. But traditional financial institutions were also interested in using it. Why? Because it allows them to solve many problems.

For example, Blockchain makes it easier to confirm identity and register transactions. It is possible to significantly reduce the risks of counterparties, thanks to the instant verification of the history and reputation of each of them because the Blockchain allows to carry out a full check of the company without the participation of the trustee - you do not need to ask the counterparty for documents or access, all financial statements can be stored in the registry and be open to a wide range of persons.

The use of Blockchain makes it possible to conclude contracts and contracts without the participation of lawyers and red tape, to invest in a safe way using smart contracts, to effectively manage risks... In addition, with this technology, it is very convenient to confirm copyrights, and in general - you can apply Blockchain technology in a variety of areas - from trade to voting in elections.

Fintech speed and Blockchain

While we talked a lot about Blockchain, we should also mention the fintech industry. The latter is a very broad field and also engulfs Blockchain. Fintech is mainly about banks and their digitalization. Whether its speed will somehow move closer to Blockchain is difficult to predict, because still transactions in Blockchain are executed instantly. Some banks have problems with that and frequently it can take several working days. But the future is a technology and eventually, everything will rely on fintech - to a more extent than it is now.