Towards a redefinition of finance via blockchain?
Économie

Towards a redefinition of finance via blockchain?


7:00 PM ▪
4
min. reading ▪ by
Luc Jose A.

Blockchain marked a turning point in modern technological development. This technology tends to position itself as an effective operational alternative for companies, especially financial companies. We see several of these companies joining blockchain and thus recognizing its relevance. Would this trend change the current financial ecosystem? In the following lines we will try to answer this question.

Illustration of a blockchain, the technology on which cryptos are based and which could redefine the financial world.

In brief

  • Blockchain is gaining popularity in the financial sector and is being adopted by major banks such as Société Générale and Deutsche Bank.
  • Experts predict that blockchain could provide banking to 1.7 billion people and promote global financial inclusion.
  • Technology has the potential to revolutionize financial processes by eliminating middlemen and reducing transaction times and costs.

Visible effects of blockchain in these certain key sectors

The crypto industry has been going through a tumultuous period for several months. The same cannot be said about blockchain. This technology, without which cryptos cannot exist, is very successful among companies.

The trend is strengthening in several strategic economic sectors. This is especially the case in the financial ecosystem. In recent weeks we have seen several major financial groups adopt blockchain, which is considered critical to their growth.

Société Générale, Standard Chartered and BNY Mellon are among them. This is also the case for several German banks, such as Deutsche Bank. The latter recently joined forces with the company Taurus to offer crypto custody services.

We cannot absolutely say that blockchain redefines the ecosystem of the financial world, which in this case is traditional. But it is clear that a general trend in this direction seems to be emerging.

This dynamic is more remarkable in a sector like real estate. With the rise of Non-Fungible Token (NFT) and smart contracts, blockchain tends to simplify real estate rentals. This is done by strengthening security and transparency.

Can blockchain revolutionize the financial sector?

Promises of a positive impact on the global financial ecosystem

Blockchain certainly has a noticeable impact on various areas of activity. But according to several analysts, it is its effects on the global financial system that could be most interesting to monitor.

Experts believe that blockchain should primarily promote financial inclusion on a global scale. So it would support the banking of about 1.7 billion people. A perspective that promoted access to financial services for the majority.

Moreover, specialists believe that blockchain can have a positive impact on financial processes. It would then eliminate middlemen. A step forward that would reduce delays and costs associated with cross-border transactions and other financial operations.

Ultimately, this streamlining of financial processes is expected to promote overall financial integration and improve efficiency. At the beginning of this year, the World Economic Forum (WEF) indicated that blockchain would become essential to improve transparency in a vital sector such as agriculture.

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Luc Jose A. avatar

Luc Jose A.

I am a graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra. In 2019 I joined the Cointribune adventure. Convinced of blockchain’s potential to transform many sectors of the economy, I have taken on the commitment to raise awareness and educate the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, pass on the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.

INDEMNIFICATION

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.

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