3 ways how Blockchain technology is rewarding for the Financial sectors

“On a global level, the investment in Blockchain technology was around $3 billion in 2013, gradually raised to $20 billion by the end of 2015 and is now expected to cross $60 billion by the 2020 — this shows how the technology ever since invented has been rising with whopping numbers”.

The blockchain technology was invented in 2008 with a motive to safeguard the most intrinsic & confidential data of the enterprises/individuals from the server hacks. Also, to help in performing the monetary tasks or transactions with full care.

While everyone was busy googling about this technology, it was the financial sector who came up front to adopt this innovation into their outdated systems, why? To prevent the public’s and their data altogether from leaking.

In this article, Quantumsoftech as blockchain development company will let you know the few basics of how this technology will be fruitful to the financial sectors or say banks.

1. Reduced infrastructure costs

Currently, banks are utilizing the old school practices and infrastructure to formulate a contract between their customers and them. By utilizing blockchain flourished technology, they can lead to a smart contract which is hard to access by third parties and cost-effective as it won’t require a large setup or infrastructure.

With this technology, it is believed that banks on a global level will be able to reduce their infrastructure costs by $15–20 billion by 2020 — that is huge right?

What’s its use?

• Lots of savings in the transaction cost between banks as the process will be fast.
• The tighter grip of banks with such technology into the market.

With this technology comes the greater role of more and more blockchain development services providers that could help such financial sectors level up their infrastructure costs.

2. Secured transactions within the sector

Financial sectors or to be precise banks are always on toes in terms of safety of their data. One hack in their server could lose the entire data of their valuable customers. Blockchain technology came out as bliss as it notes the data in the form of shared ledgers which are hard to access by the outside party.

How shared ledgers will help banks?

• Firstly, since the process/transaction speed will be lightning fast, no third party or hacker will get enough time to redirect the flow of data towards them.
• Secondly, there are going to be two keys for each set of data or information. One key will be public and the second key will be private. The public key will be available for every viewer’s use but they cannot change the data or records. The private key will be linked to each owner’s account. And the best part, these keys are only for one time use — even if the hackers procure it by any chance to decrypt the data, the key won’t allow them to go further with the transaction & will block their way in an instant.

3. Transactions in a blink of an eye

It takes days or weeks to process the simplest transactions of the banks like fund transfers but with technology of blockchain, the banks will seek the fastest transactions as the data will be distributed in a form block at different data centres or in a decentralized manner, it will be easy for authority members to process the transactions from any point without much reconciliation of the document/data.

The financial sectors have stringently started to capitalizing in this technology since it is favourable for them in all facet.

But this technology is not limited just for financial sectors!

Along with banks, there are other sectors too like retail, real estate, tourism and many others that have started invested in such breakthrough technology with the development of their suitable enterprise apps. Quantumsoftech is a blockchain app development company that builds the most engaging, user-faced, industry-specific both native and cross-platform apps with the blend of technology — that is so revolting. Why? To help you in your purpose of securing transactions and data.

You think you need that amount of security and safety for your data too, consult about this technology in detail and hire blockchain developers from us!