Blockchain technology is one of the most sought after technologies of the modern world but few people really know what it really is about. As a result, a lot of people confuse it with fintech, which is another one of the many buzzwords doing the rounds in the tech scene today. However, fintech is only one of the many applications of blockchain. Yet, it is important to note that fintech blockchain is one of the best known kinds of blockchain there is. Hence, it deserves a thorough discussion.
What is Fintech Blockchain?
Fintech blockchain refers to any blockchain network that supports immutable, secure, decentralized and peer-to-peer transactions.
While this can include crypto transactions such as those that occur on the Bitcoin blockchain, it can also include the use of blockchain for facilitating transactions within the traditional financial setup, in the manner in which Ripple’s payment protocol tries to smoothen cross border transactions for banks.
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The idea behind fintech blockchain is basically to ensure that transactions can occur using this distributed, decentralized network, be it for digital, cryptographically secure currency or fiat currency of any kind. Fintech blockchain makes the process of transactions as trust-less as possible and makes sure that they can go through smoothly without any corrupt interruptions.
Benefits of Fintech Blockchain
Fintech blockchain is the most useful for people sending in cross border payments to their families. For the thousands of migrant workers who work away from their families, it is imperative for them to able to send money back home at a nominal cost and a high speed. The use of the Ripple blockchain in this case is quite exemplary.
Its gross settlement system helps eliminate middlemen and facilitates speedy and effectively transactions for users, even beyond crypto. The use of cryptocurrencies and transactions over blockchain also follow a similar pattern.
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