Many of us will know blockchain is a technology that underpins bitcoin as a cryptocurrency. In reality, it is a protocol that records transactions using a complex algorithm and encryption method. With blockchain it is possible to create an environment where transactions are being recorded and stored using this technology. Because of this, everyone who needs to know the necessary details can see the transaction. Adapting blockchain in the Fintech industry means lower costs for the service provider and the customer as the banking transaction costs haven’t changed in decades. It also makes peer to peer payments easier, faster and safer with less fees.
The Fintech solutions that have adapted the blockchain are continuously working on transforming how the financial services are being delivered. Consumer will have the biggest gain not only from the user experience or convenience, but also one of access and cut cost savings.
Here is the list of some of the successful blockchain projects in the financial industry:
The we.trade platform was created by IBM and side by side with 12 major European banks to assure a transparent trading environment with minimal risk for companies and banks. We.trade gives opportunity to companies of all sizes to easily and safely do business internationally, which helps to stimulate global economic growth.
Companies gain access to the platform by the approval of their bank. It allows minimizing risks, which appear in business management with third parties. Blockchain technology serves as a single database that is not controlled by any specific authority. Two leading advantages of we.trade are a distributed ledger and smart contracts. The distributed ledger ensures that all counterparties have access to the same information regarding trade transactions, and that none of the parties can control this data. On the other hand, the use of smart contracts helps to avoid risks of delayed obligations fulfillment of the counterparties, such as late payments. The platform is being used around by more than 400 companies.
Ripple is a cryptocurrency platform for payment systems. This global solution gives you the opportunity to instantly transfer almost any currency to any place around the world. The system uses the platform’s internal currency — XRP. It allows users to quickly convert any other currency on the platform. The platform is based on the Proof of Correctness algorithm and uses RPCA (Ripple Protocol consensus algorithm) in a P2P network of independent nodes. One of the main advantages of the network is the fact that it takes only 4 seconds to process a transaction. Also, the system is very scalable and can process over 1500 transactions per second. Foremost, the platform was designed specifically for the banking sector to facilitate and accelerate transaction processing all over the world.
To execute transactions, Ripple uses its own blockchain network — RippleNet. At the present moment, more than 200 banks and financial institutions, including Union Credit, UBS, Merrill Lynch, Santander, SED, have already joined the network.
Bitpay enables businesses to accept bitcoin payments from their customers. The technology ensures that the business receives the payment without any risk of volatility, fraud or chargebacks. The company’s goal is to adapt daily payments of cryptocurrencies and increase their availability.
At the moment, BitPay is the largest processing company working with Bitcoin payments. BitPay offers many types of services for regular users and entrepreneurs. These are: wallet, business-grade payment system, and even a Visa bank card, issued together with the VISA company. When a payment is done via the Internet, an application, or using a Visa card, BitPay accepts bitcoins as a payment processor and sells them to a partner exchange. Having received a traditional currency from the exchange, BitPay transfers them to a seller’s bank account. The whole process is quick and automated, so that the participants don’t get involved. Currently, there are more than 1,500 sellers working with the system. In total, BitPay has already processed a huge number of transactions with a total value of about $2.8 billion.