Hello! This is my first post on Data Science Central, so please be patient. I've had a short Q&A session with our CTO Sergey Nemesh.
Q: What problems can Blockchain solve for the FinTech sector?
A: The main global problem in the FinTech sector is trust providing as for financial operations it plays a crucial role. Blockchain provides trustless transactions which means that you don’t need to take the counterpart’s word, but you can be sure in systems’ mathematical reliability.
Most payments can proceed during a couple of days due to a number of payment processors. While Blockchain transactions are held within a seconds and require minimal fees or no fees at all.
In addition, core issues falling within the FinTech industry are incomplete system protection causing the risk of fraud and inaccurate information; inability to access financial services of some segment of society in certain areas. Blockchain solves all of them due to its decentralized nature by providing transparency, data security by using cryptography methods, shared publicity and automation.
Q: Why does the FinTech sector need Blockchain?
A: Apparently, Blockchain's unique features fit FinTech needs perfectly.
As I already mentioned, Blockchain absolutely solves the issue of trust in transactions. It is the revolutionary solution as so far all operational solutions are centralized. Blockchain enables decentralized solutions and avoid human error.
Also, it can be noted that Blockchain-based transactions of any type and difficulty can be monitored in real-time, the technology enables peer-to-peer transactions due to cryptocurrencies providing full control over assets and minimizing fees due to its transparency and consistency, as well as reduce time for clearance and settlement processes as Blockchain records are seen in real-time, build trust between businesses and consumers.
Q: What are the top use cases for Blockchain in FinTech?
A: Banking and Cross-Border Micro-Payments Particularly
The whole financial sector is built on operations that require the highest level of security, reliability and short transaction time. The remittance sector is one of the most perspective fields for Blockchain deployment. Due to opportunities provided by Blockchain, people and businesses will have full control over their assets without any third-parties and not reasonable fees.
Cryptocurrencies as the first Blockchain use case ever. Being based on and provided by Blockchain cryptocurrency is considered as a future of money. Nowadays it’s getting more and more casual to pay with cryptocurrencies in big international deals and even while shopping.
Therefore, if you want to know how to build a bitcoin wallet for your own purposes and business, we have an article about it.
The Blockchain technology can remove numerous controversies and stock manipulation as everything in the stock market will be built with smart contracts, decreasing stock trading cost and time.
Voting and Registers, including Governmental.
This sectors highly requires data reliability and veracity, permanence and impossibility of forgery more than any and Blockchain gladly provides it.