Post Project
Continue with Facebook
Continue with LinkedIn
This article talks about the challenges mitigated on introducing blockchain in the fintech, the opportunities found, and other benefits that businesses received.
The fintech industry is recognizing the transformative impact of blockchain technology for generating more revenue, improving the end-user experience, delivery process, and efficiency, and reducing risks in business operations.
Fintech, like any other tech-oriented industry, is in its evolving stage. Several new finance apps are now mushrooming up on a daily basis, offering better and new approaches to the processing and management of payments.
Fintech makes up the lion’s share in the blockchain market and for a good reason. The fintech blockchain market is expected to reach a valuation of $36.04 Billion by the end of the year 2028. Decentralized Finance (DeFi) would be an emerging financial technology based on blockchain that reduces the control of banks on financial services and money. Over the course of decades, we will also notice that digital ledgers will experience a transformation in how we receive, send, store and manage our money.
What is FinTech Blockchain?
Arguably 2022 is the era of fintech. Several fintech companies have already started thriving since the early 2000s, but over the last few years, companies have experienced massive success as they applied modern technology and customer-centric ideas for solving issues in the current financial systems.
DeFi or Decentralized Finance is the next step in that evolution that utilizes l decentralized smart contracts. Several financial giants have also started investing in blockchain in fintech R&D for their businesses. This reinforces the fact that finance and blockchain companies are not necessarily at odds, instead they can complement each other greatly, thus furthering success.
DeFi is all about the merging of fintech with blockchain. Although the two are not exactly the same, there is a lot of crossover between the use cases in the financial sector. Blockchain for finance is known for its decentralized, distributed, immutable and transparent digital ledger technology, which offers a new type of security and freedom. DeFi companies with blockchain elements create an open alternative to everyday financial elements. This has removed the requirement of a middleman as people can now utilize stablecoins.