Despite the fact that Bitcoin recently seems to cause some disappointment amid the hype surrounding the sharp drop in prices, high volatility and scaling problems, projects based on block network technology have reached a high level of acceptance, and the development of new block networks continues Rapid rate in 2018. This absolutely clearly indicates that the revolution in the sphere of financial technologies has begun, and that there is no return. The financial industry should rethink most of its operations and gain huge benefits from the introduction of blocking technology, many modern financial analysts believe. The question is, where will it begin in the first place, and which financial institutions have real chances to begin now to develop projects that, thanks to the new evolving technology, will be able to radically change the way of interaction between all counterparties, including suppliers, customers and even regulators?
Main areas
Research conducted by analysts identified the following key areas of priority for the development of Blockchain technology:
- Projects related to the issuance of patents, where competition is increasing every year;
- Financing in the field of logistics for the regulation of supply chains;
- Change in the settlement infrastructure for securities;
- Management of funds and distribution of their activities;
- The system for issuing loans, processing and managing the life cycle of a debt;
- Management of cross-border payments.
Analysts say that already in the near future, regardless of whether cross-border transactions will be carried out in crypto currency, or in fiat money, they will be carried out almost instantly.
Authentication issues
Of course, given the active development of cryptology, governments of different countries will be more demanding about the authentication of customers, and it is not difficult to understand why. While aggregated costs are very scattered, KYC by all standards provides the greatest opportunity to track customer money transactions. It should be noted that any medium-sized bank spends more than $ 100 million a year on KYC and customer verification. Moreover, brokers, foundations, corporations and employers regularly continue to check the same individuals for different purposes. Moreover, the reception of a new client, partner or new employee can still take from 26 to 32 days, according to statistical data. And it should be noted that the DLT has all the possibilities to shorten the duration of the verification process in all areas of activity. The new technology opens up new opportunities for interactions between market participants, who are sometimes direct competitors. A new generation of enterprise applications aimed at satisfying the needs for services and databases should logically evolve from new joint working projects. And the above-mentioned areas of using Blockchain-technologies are likely to be the first to qualitatively change the approach to financial management.