You’ve probably heard of the term blockchain development before in relation to the crypto craze. While a little amount of people actually understand what crypto is and how it works, even less people understand what blockchain development is. This is a great shame as it has many benefits that it can offer to businesses if they were to adapt it into their work.
Blockchain development refers to creating these ledgers that act as digital transaction records. Each record is the same on every device that is connected to the network to allow for a more global presence. The devices that are connected to the network have the ability to create new records on these ledgers as well as access and review previous entries.
When a transaction takes place on the network it is group into a block. It is then recorded to a chain which is how the name of the term can to be. With all this open source data you may be thinking if it is safe to store it on these networks. Well each piece of data that is being recorded is protected by cryptography which in layman’s terms means that the data can’t be deleted or altered. Due to its ability to serve, record and move assets, blockchain development is becoming a rising trend for a lot of start up businesses.
To fully understand what this means for you and your business we are going to go into more detail.
Payments across countries
For anyone that deals business internationally they know the troubles of slow and complex payments overseas. Blockchain development is here to put an end to those miseries as the middle man is removed to allow for a lower remittance when you decide to transfer funds. Couple this with faster and simpler payments and you’re looking at a handy practice to implement.
Cross-country payments have the burden of remittances which usually range in between five to twenty percent. If you were to take advantage of blockchain development you could be looking at remittances as low as two to three percent instead.
Digital identity security
Our digital identity is becoming less and less private in today’s technological world. To counteract the impingement of our privacy, this technology has the capability to be able to allow their users how they identify and whom they identify with.
Rather than having a new account for every service, the original account that was registered to the network would act as a one size fits all kind of deal. If this were to go through, users would have the capability to create open accounts with ease while also protecting their privacy.
What it means for capital markets
This technology has the capability to streamline and simply the trade process in its entirety. All parties that take part in the trade life cycle will also have access to the same data about the trade that is completed in an automated manner.
If this were to go live you could see your infrastructure costs be dramatically reduced, data management becoming even more effective, a fully transparent process, streamlined processing cycles, cutting out middlemen and barely any reconciliation.
One of the first financial services to take advantage of this technology was Nasdaq. Nasdaq Linq saw the capabilities that blockchain development has to offer and used it to create capitalisation tables. Private firms were able to use these tables to manage shares within the company which completely cut out the need for middle man which in turned has saved them a lot great deal of money.