Hristo Georgiev
Apr 12 · 4 min read
Best blockchain use cases — Blockchain in Finance

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.

Source: https://advisory.kpmg.us/content/dam/advisory/en/pdfs/blockchain-future-finance.pdf

But what exactly are the benefits for business owners to be their own bank?

Full Control

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.

Save Money

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.

Automate

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.

Source https://blockgeeks.com/wp-content/uploads/2016/10/infographics-02-1.jpg

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:

Source: https://advisory.kpmg.us/content/dam/advisory/en/pdfs/blockchain-future-finance.pdf

Be a leader not a follower

Source: https://www.ibm.com/blockchain/industries/financial-services

“Using an open-source DLT solution will ensure the appropriate levels
of confidentiality, security, standardization, scalability, and flexibility required to create a meaningful network effect across the financial industry.”

Tom Zschach, Head of Technology and Operations at CLS

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:

Source: https://www.ibm.com/downloads/cas/AY1QE1PK

If you have a great idea — but you don’t have the skill to build it — get in touch with us at hello@hack.bg.

Take a look at the full list of our services on our website.

We bring ideas to life.


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hack - DLT & Blockchain Solutions

Hristo Georgiev

Written by

Business Development Manager @hack_bg

hack

hack

hack - DLT & Blockchain Solutions

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