Do you think blockchain can be a feasible technology that can be adapted for financial transactions?
Answer:-Blockchain is feasible technology that can be adapted for financial transactions because
· Disintermediation & trustless exchange - Two parties are able to make an exchange without the intermediation of a third party, thus reducing counterparty risk. Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
· Empowered users - Users have control on the information and transactions.
· High quality data - Blockchain data is complete, consistent, timely and accurate.
· Durability, reliability, and longevity - Due to the distributed networks, blockchain does not have a central point of failure and is able to tolerate malicious attacks. All the transactions made are authorized by miners and prevented from the threat of hacking.
· Process integrity - Users can trust that transactions will be executed as per the protocol, thus removing the need for a trusted third party.
· Transparency and immutability - Changes to public blockchains are viewable by all the parties creating transparency and transactions cannot be altered or deleted.
· Ecosystem simplification - All transactions are added to a single public ledger, thus reducing the complications of multiple ledgers.
· Faster transactions - Interbank transactions take days for clearing and final settlement, especially outside the working hours. Blockchain transactions can reduce transaction times to minutes and are processed 24/7.
· Lower transaction costs - Blockchains are less costly due to low transaction fees, elimination of third party intermediaries and overhead costs for exchanging assets.