New technology trends are changing the world economy from cloud computing. For the financial sector, blockchain is seen as a new trend in the future.
More than 20 years ago, the Internet appeared not only for emailing or downloading software but also as a driving force for the global economy.
Like the Internet, the blockchain comes as a boom to Bitcoin. But the value of Bitcoin is not enough to make this technology a part of the financial industry, so what is the bottom line of blockchain?
Electronic money, also known as cryptocurrency, is a form of exchange that uses cryptography to secure transactions and control new currency units that are created.
Electronic money is a popular technology. Although there are many scams in the method used, this is considered a new beginning of electronic transactions. Electronic money is divided into two main types: limited money (eg, Bitcoin and litecoin) or unlimited monetary production (such as peercoin and dogecoin)
Both of these methods use the same method of storing the transaction history of money
Transactions between banks usually take place through a central record system or clearing system, ensuring that each currency is routed to the correct final address.
Peer-to-peer technology is greatly expanded as the system's ability to monitor and balance the system, coupled with the peer-to-peer decentralization of blockchain protection, ensures that no one can control it. Control it, at least on the theory.
We can hear about technology enthusiasts opening up "computer banks" to create "Bitcoin" mines, in fact these people are not exploiting but rather they are processing or confirm transactions and collect fees from Bitcoin. Apart from exploitation, Bitcoin can also be obtained through traditional currency trading. The other important thing is that blockchain Bitcoin is accessible to anyone, because once the blockchain is created, the encryption system and the peer-to-peer plug do not allow anyone to change that block. Confirm 1 with a permanent record.
Governments of some countries and financial institutions are warming up ideas coming from electronic money, but it is the enthusiasm of the world's leading financial players that makes blockchain technology widely spread. strong.
Blockchain is seen as a way to cut costs and time for clearing interbank transactions, as well as creating safer systems. At this point, many financial institutions are battling each other to form new alliances to commercialize blockchain technology.
New technology raises questions about employment in the financial sector. Not only artificial intelligence, but the explosion of new technologies such as blockchain has made the financial sector change. The development of financial technology, or "Fintech", can lead to significant changes in financial services.