Introduction
Before now, there was the trade by barter system where goods bought were paid with goods in possession. Modern technology made us realize that we can do better by producing out a legal tender which will act as the payment options. However, this too had its limitations, such as disparity in local currencies, difficult exchange rates, etc.; then, an advanced technology brought a solution to all trading problems that involved the legal tender, and that is the cryptocurrency.
The banking/financial industry is expected to go under a revolution which may change a lot of lives.
What is blockchain technology about?
Blockchain technology is a decentralized system where all transactions can be made online without physical money through the use of cryptocurrencies. There are many cryptocurrencies in the world today that have been developed under the blockchain technology, and some of them include; Bitcoin, altcoin, tied coin, etc. They make sure people gain access to their needs quickly, as well as maintain a transparent platform in the process against hiked fees and prices.
The question that has been bothering everyone so far is that: how will blockchain technology help the banking sector since they now have to adopt a new trading method which involves cryptocurrencies?
What are the benefits of Blockchain technology in Banking?
In the world we live in, we have more young individuals who are exposed to the internet, and advanced technology. It is very easy for them to adapt to these changes, and impart others with the knowledge of blockchain. When doing so, what people want to hear are the benefits, both to them, and the financial sector.
For instance, for someone who is getting invited to use altcoin, below are the benefits attached;
- Ultra-fast transactions: Making use of cryptocurrencies like altcoin or bitcoin not only saves the pocket but time. It helps a user to avoid long queues in financial institutions which most of them don’t appreciate. Therefore, at the snap of a finger, funds are transferred from a user’s wallet to another’s without wasting time. Also, people who are in professional stock trading platforms like beaxchange will find it easy because they can use an online platform to trade in real time. Remember, everything that is done is safe and secure.
- Transparent and Accessibility: Where a customer comes to lodge complains multiple times about the loss of fund from his or her bank account, blockchain promises a transparent system. To an extent, the pressure on the banking sector to be accountable for certain losses will reduce. Whatever is done, bought, or fees paid are all accounted for using blockchain technology. Furthermore, accessibility is another thing most people will benefit. Imagine having to travel miles or move over a distance just to contact a financial institution about a problem. In blockchain tech, the cryptocurrencies are accessible anywhere in the world. The altcoin will always remain inside the wallet.
- Reduced costs of transactions: Recently, Tiedco has a company formed a partnership with beaxchange for a super smooth trade system. With the use of their crypto called tied coin, transaction cost gets automatically reduced. The tied coin and the exchange platform, i.e., beaxchange now work hand-in-hand for great trading experience. Unlike when there are cases when people would love to buy things online, and the prices get hiked for no reason.
- Security: Many times, financial institutions have had breaches in their system which led to their closure. The use of cryptocurrencies helps to maintain this situation, with crypto wallets safe and secure. Different crypto platforms such as Tiedco have made their coin, i.e., tied coin safe as well as the wallet improved with top-level security protocols to avoid a breach. This is definitely what people want, i.e., knowing they can monitor their funds.
What is the banking sector’s perception of blockchain technology?
For now, financial institutions are yet to adopt blockchain technology, even though they know its impeccable benefits. However, they advise users to be careful about the type of cryptocurrencies to invest in, and trading platforms to join. Sooner or later, cryptocurrencies will change the world, and how people spend money.
Conclusion
Financial sectors have always had issues with transactions, and the invention of a more comfortable method will help a lot. For traders, cryptocurrencies are the new cool, and with the use of trading platforms like beaxchange for altcoin, bitcoin, and even tied coin, there is nothing that can’t be accomplished.