A process of shifting from a centralized system of Banking to a decentralized system is difficult but this is the need of the present times when we have access to a technology which can prove itself a boon to the Banking Industry. Indeed Blockchain is the Future of our Financial System and after reading this article you will come to know the reason behind this statement. For those who are still struggling to understand the buzzword 'Blockchain', I would suggest them to go through my previous article on what a Blockchain is. The article discusses the very basics to make you understand of the technology and have also provided you suitable links to understand the concepts.
Must Read: What is Blockchain technology? Everything about how a Blockchain works!
"Instant transactions, no waiting for checks to clear, no chargebacks (merchants will like this), no account freezes, no international wire transfer fee, no fees of any kind, no minimum balance, no maximum balance, worldwide access, always open, no waiting for business hours to make transactions, no waiting for an account to be approved before transacting, open an account in a few seconds, as easy as email, no bank account needed, extremely poor people can use it, extremely wealthy people can use it, no printing press, no hyperinflation, no debt limit votes, no bank bailouts, completely voluntary. This sounds like the best payment system in the world!"-Trace Mayer J.D., a leading expert on Bitcoin and gold.
The use of Blockchain technology in Banking and Finance will make the system faster and too cheaper. There are various transactional costs that we need to face at the time of transactions because the system we are living in a centralized Banking system and every mode of the transaction will involve a third party indulgence. Having a decentralized system Blockchain does not require the need of a third party system and it is a peer to peer transaction where the sender and the receiver are in the loop with no third party coming in between.
Blockchain puts no additional costs that a traditional system puts on the person involved in a transaction which is also the reason behind Blockchain is gaining such a wide acceptance. There are many people who take Blockchain technology as Bitcoin but it is a matter of fact that Bitcoin is a digital currency and Blockchain is the technology that it works on. So there are some misconceptions about the technology. The misconceptions have arrived due to the lack of proper knowledge of the technology which is a major concern in adopting the technology.
Unless the misconceptions wipe away we are lagging in adopting the safest, cheapest and fastest technology for our transactions. It is time we understand what technology can offer us and use it to the best possible way for ourselves. The traditional systems of Banking will not be uprooted with the technology but will only evolve to the most advanced version of itself.