All posts by Andrew Woods
Fintech Driving Blockchain Technology
Although there are number of key technological developments that are behind the emergence of Fintech, there is one technology innovation, Blockchain, that has emerged from the financial sector itself and is now being applied in other industries. It has the potential to not-only transform financial services industry but also impact several other major industries. Blockchain was developed as the foundational technology for cyber currency, Bitcoin. Its potential is being explored across the financial services value chain.
What is Blockchain?
Blockchain is an implementation of a distributed database of transactions or distributed ledger. The concept behind this is rather than having a single clearing party for a transaction, the network becomes the clearing house. The business ledger is shared across the network and each trusted party validates the transaction. The primary benefit of this is efficiency and increased transparency. Blockchain has the potential to reduce the cost of a transaction to near zero thereby potentially wiping out many traditional business models. For more information on how Blockchain technology works we have provided links to several sources at the end of this article.