Smart Contracts Development Services
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Technology has always rocked the cradle of business, and its inevitable influence is explicit in recent times. FYI, the Blockchain market is predicted to grow beyond an enormous figure of $3 trillion by 2024. However, the number seems beastly big, but there is a substantial uproar in numerous industries. The primary contributor among all of them is the banking and finance sector. Apart from business, Distributed Ledger Technologies (DLTs) and Smart Contracts are helping blockchains evade businesses at a whopping rate of 42% every year. It is comprehensively supported by venture capitalists who have invested more than $1 billion into blockchains in 2018. Amidst a vast buzz and talks around the industry, the equation of technology-driven growth in finance seems to have numerous variables in accordance with that they are collectively building up a sustainable hype.
There is a trend of C-levels and other mature minds in the tech business industry talking about blockchains and several uses. Here is the simplest explanation you could ever find. Distributed Ledger Technologies (DLTs) are nothing but a decentralized database which is automatically updated on all the transactions across nodes that are processed before confirmation or so-called ‘proof of work.’ Any technology which works and implements the same concept will fall under the bracket of Distributed Ledger Technologies (DLTs). The Blockchain is the famous player conceptually executing the same. A Smart Contract is nothing but a digitally crafted, dual-authenticated statement which specifies the ownership of physical or digital assets owned by a party after the sale from another. So basically, a Smart Contract is nothing but a digital receipt of a transaction stored on the decentralized database of a DLT called the blockchain.
With numerous banks and financial service organizations collaborating, forming a consortium and investing a lot in research and development, it gives a massive incentive for the followers to magnify the numbers.
Businesses are getting steep, and the lagging finance system mostly feels the pressure. The world is becoming extensively global, and companies are increasing their reach beyond borders. In such a scenario, slow payment transactions have been a bottleneck for growth and larger volumes of business. Numerous companies are considering it as an impediment to communicating, collaborating and building mostly cohesive companies in an era where partnership is the greatest mantra. When we talk about cross-border payments and active transactions, security concerns are inevitable in one’s mind. It is a great matter of concern which leaves even the largest of businesses with no confidence to execute their businesses in full swing in the alienated market.
Companies want more business and more business means numerous entities on board with the company. Flooring a client with all the business proceedings takes lesser time than setting up a payment channel with them. This is a complex process which significantly needs to be addressed. When a company gets more people on board, several operations and business initiatives transform into a multi-stakeholder affair. It requires a lot of communication and complete synchronization of details.
Verification of transactions and authentication of receipts is another hurdle that is yet to be conquered by the conventional finance system. In simple words, there are several stories of breach of trust and forged credentials. There has to be a foolproof confirmation on all the intimations and transactions which are happening over Distributed Ledger Technologies (DLTs).
Any business that is presently harnessing stellar growth and business stability in compliance with the trend has undoubtedly invested in the technology infrastructure with a clear futuristic approach in the past. Companies like R3 and technologies like blockchain are the most significant examples of R3CEV consortium.
Whenever we walk up to a bank or wealth management company and avail of their products or services, there is a lot of hassle involving KYC and document verification. Precious time is wasted, and there is a big deal in rendering services or reaching the final point where a customer starts using the product. It certainly irritates the customer and also makes companies lose future business. Quality-driven blockchain-based product development is helping organizations of all classes reach a higher level of trust and efficiently manage their work.
General stock markets, equities, and F&O have a critical factor of right timing while executing orders. In the present day, most of the market enthusiast who has maintained a portfolio consider it a hassle. They are not able to trade at the exact rates they see on the screen. There is a variable time lag in updating the prices and changing trends. Banks are continuously working with innovative blockchain-based product companies to enhance the customer experience for their premium, and high-net-worth individuals.
Blockchains are in a favourable position to change the scenario of cross-border payments forever by 2020. However, there are numerous other innovations like UPI and mobile-based payments which are leading the baton-led blockchains. They have the potential to provide a broad spectrum of changes for payment channels. It includes services for businesses and individuals as well. One may not be surprised if he finds a blockchain-based product available in the market for general use branded with the trust of any tech giant.
One of the most common mistakes which a layman does while reading and surfing about blockchains is that he, knowingly or unknowingly considers cryptocurrencies and blockchains to be interchangeable. However, it is far from reality. The impact created by Blockchains in Banking, Financial Services is undebatable under the likes of Smart Contracts and their use. But, there are numerous European, North American and Asian countries which have shown interpretive signs of scrutinizing the credibility of cryptocurrencies. It doesn’t mean that they are directly or indirectly questioning the use of Distributed Ledger Technologies (DLTs).
The growing numbers and figures of blockchain business can be expected to increase manifolds once these clouds of confusion and lack of information are shed off. Rest all depends on how Blockchain Technology rides the curve of maturity for sustainable, potentially demonstrated epitomes of performance, problem-solving and most important of all, efficiency.