Currently every financial transaction done online relies on a central trusted authority (Ex: Banks/financial institutions). All the financial transactions has to be authenticated by a third party & has to be recorded in the ledger. This process consumes time & money. This is where Blockchain Technology will be effective.Using Blockchain Technology, financial industry would have tremendous benefits; it can radically reduce costs for banks, providing a boost to productivity and making it easier to offer products and services to global customers. Currently settlement times for many financial products take days, sometimes weeks, tying up capital and exposing industry participants to huge counter party risks. Blockchain can simplify many business processes, reducing risk and boosting transparency.
Financial institutions are exploring a variety of opportunities to use blockchain, including applications to improve and enhance currency exchange, supply chain management, trade execution and settlement, remittance, peer-to-peer transfers, micropayments, asset registration, correspondent banking and regulatory reporting.