How Blockchain will change the Financial Service industry?

Have you ever wondered how Blockchain will change the financial services industry? The financial world is constantly changing. That’s why in this article we tell you everything you need to know. Our experts in the field talk about this topic that concerns us all. Here we go!

Defining the blockchain without discouraging your listeners from taking an interest in it is a difficult exercise. However, the technology we present can be characterized as a chain of blocks containing information (such as transactions, for example). It can be compared to a registry to which everyone can have access (public blockchain) and without a central control body: the transparency of the network is the reason for this absence of regulation, security rests with the users.

Where does Blockchain technology derive from?

This technology is therefore derived from smart contracts. In other words, from those intelligent contracts whose ambition (and vocation) is to replace the conventions as they exist today.

Smart contracts are at the core of blockchain technologies. Additionally, they are self-verifying, self-executing agreements that that can function autonomously.

Smart contracts address the very core of Contract Lifecycle Management (CLM) solutions. That is, automating the contract lifecycle to improve compliance, mitigate risk and increase efficiencies across the enterprise.

Scope of Blockchain technology

The blockchain technology is being actively adopted by finance. However, it is inevitable, as such technology helps to achieve well-established workflows. The above is achieved by simplifying record/identity management, transaction processing, provenance of goods and traceability.

By excluding an intermediary, the technology also allows for minimizing or eliminating the counterparty risks, as well as reducing overhead costs, transaction time, and the related fees.

The rise of smart contracts

Highly competitive and regulated financial industry carefully considers important innovations. In general, smart contracts bring many advantages to the automation of banking processes when it comes to the interaction of several parties.

What are the limitations of this technology?

Banks, which applied Ethereum, claim that the blockchain is still not mature enough. At the same time blockchain technology made considerable progress with speed, security, privacy, and manageability.

In the nearest future smart contracts supported by new platforms, including Credits, will become a standard industry solution. Likewise, blockchain technology promises a more secure, decentralized, synchronized and distributed record of digital transactions, without the need for third-party intermediation.

As seen in the article, security in financial transactions is one of the main advantages of this technology. Moreover, as there is no central authority or intermediary, information is always instantly available to all participants on the Internet: it is a major technological revolution for all types of industries.

Furthermore, the evolution of software and devices makes it possible to connect transactions through a global distribution system. Therefore, it is important to see how it evolves, to make our processes simpler and more efficient. Undoubtedly, this technology has changed the paradigm of distributed digital accounting and information storage. We are getting closer and closer to the future and it is in your hands to be part of it.

At Asklogix we offer CRM solutions for financial services, developed on the Salesforce platform. We have extensive experience in the field and every day we innovate to provide you with a relentless service. Sales process automation and optimized sales and marketing collaboration processes are essential. At Asklogix we help you achieve success.

To know more:  Discover Salesforce Blockchain solution.

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