Blockchain In Finance (Chapter III)

Continuation of Blockchain In Finance. It involves financial technologies (fintech).

Since the emergence of financial technologies (fintech), it has swept through every aspect of businesses and our lives. It became such a frenzy that now banks are doing everything they can to create the best fintech applications. In this chapter, we’ll discuss blockchain applications of fintech.

What is fintech?

Fintech can be described as a technology that aims to improve and automate the delivery and use of financial services to consumers. They use software and algorithms to make users’ lives easier.

How blockchain revolutionized fintech

Because blockchain was first utilized to create financial products, financial technologies have joined the frenzy to enhance themselves. Despite blockchain in fintech is not matured yet, startups and companies brought up platforms and applications that based on blockchain includes supply chain finance platforms, trade finance, banking, and the rest of the accounting software available. Even more, some banks invest in blockchain startups and open departments to keep up the development. Some of them would even acquire startups on their structure to get an advantage in the market. But they mostly become unacquired by banks and they generally sell their services. Moreover, some platforms attract attention to develop blockchain products.

Popular platforms for developing fintech products on blockchain

Ethereum

It’s well-known for developing financial products like decentralized finance, coins, and DAOs. And it became ever more popular with tokenization of security and marketplaces designed for specific purposes. So, ethereum became popular in financial technologies and still becomes popular today.

Hyperledger

Another popular fintech platform for developing blockchain applications. Especially for payment systems, loyalty applications, and supply chain management. Even more, they became as versatile as ethereum by having a completely private network of nodes interacting with each other. So, it became popular among most firms.

Corda

Similar to hyperledger, it’s known as a distributed ledger technology to develop applications. Especially when it comes to financing applications on blockchain due to its features. As it became popular around developers in the financial industry. Even more, most compliance requirements have been done on Corda-based applications that have thrived to become the most dominant applications.

According to you, which use cases could fit to finance? Share your thoughts in the comments section below.