A Glimpse into the Decentralized Future of the Finance Sector

Neutral A Glimpse into the Decentralized Future of the Finance Sector

Blockchain makes fraudulent activities almost impossible due to the distributed infrastructure's ability to share data that is secure and unalterable, thereby ensuring data integrity and transparency. On top of this, Blockchain technology empowers users by offering them control over their transactions and data while reducing the clutter and complications of adding operations to a single public ledger. From a broader perspective, Blockchain technology has the ability to significantly reduce costs for organizations, as highlighted in the below industry examples.

In the Industry

Today, more and more organizations in the financial sector are concentrating on disruptive business models through the use of Blockchain. It can be argued that the most prevalent Blockchain disruptions have been recognized in the Banking, Trade Finance, and Supply Chain sectors.

Discover a trusted gateway to Asian markets!


The banking sector provides arguably the most prevalent example of B2B Blockchain disruption due to the platforms tamper-proof ledger, which provides an alternative to banks and traditional methods of financial institutions. Blockchain offers banks a new level of accuracy and data sharing within the financial services ecosystem. The Financial Times estimates that implementing Blockchain technology in Banking will cut third-party costs by up to $20 billion annually. Furthermore, the Santander FinTech Study suggests that by 2022, distributed ledger technology could reduce banks' infrastructure costs attributable to cross-border payments, securities trading, and regulatory compliance by $15-20 billion per annum.

One successful example of Blockchain application in banking is Ripple, a company that is helping banks process international payments through Blockchain. The company has built a real-time gross settlement system allowing quick and accurate payment processing. A study conducted by the company suggests that utilizing their platform will eliminate $18 billion annually in liquidity and payment operation costs for banks.

Trade Finance

The Trade Finance sphere is a tedious and bureaucratic space. Both stock and share purchases are required to pass through brokers, exchanges, clearing, and settlement. As a result of this, such transactions typically involve a complicated paper trail that is vulnerable to document fraud, requires international courier services and can take as long as a month to be completed...until Blockchain. Blockchain allows all parties to track documentation through a secure network and requires no third-party verification, thus contrasting to the current cumbersome and lengthy paper-heavy process.

The first Blockchain based trade-finance deal was a letter of credit transaction and occurred two years ago between Ornua Group (formerly the Irish Dairy Board) and the Seychelles Trading Company following a collaboration involving Barclay's Bank and Israeli start-up Wave.

Suggested articles

How to Generate Leads Outside of the Box? Go to article >>

The start-up connects all members of the supply chain to a decentralized network, thus allowing for the direct exchange of original and unique documents. The application also manages ownership of documents on the Blockchain, which eliminates disputes, forgeries, and unnecessary risks. The Wave platform cut a process that usually takes between seven to ten days down to less than four hours and guaranteed the export of $100,000 of agriculture. By utilizing Blockchain in the transaction, both parties were able to transfer the shipping insurance and other original documents cryptographically, significantly reducing the possibility of document fraud.

Supply Chain

Logistical planning is overwhelming. It requires full transparency and collaboration with others to optimize the flow of physical goods and the flow of information and financial transactions. The fact that much of the logistics value chain is bound to manual processes as a result of regulations is a clear aggravating factor. For example, supply chain companies must often rely on manual data entry and paper-based documentation to adhere to customer processes. As a result, it becomes difficult for these companies to track the origin of goods and the status of shipments as they move along the supply chain, creating friction in global trade.

A Corporate Solution

It is clear that Blockchain has the capacity to alleviate many of the frictions in global trade including procurement, transportation management, and customs collaboration. In order to unlock efficiency in ocean freight, Maersk and IBM are developing a global Blockchain-based system for digitalizing trade workflows and end-to-end shipment tracking (see figure). The platform allows stakeholders in the supply chain to view the progress of goods through the supply chain, locate containers in transit and check the status of customs documents and other data. The technology ensures secure data exchange and a tamper-proof repository for the data. Both companies forecast that the solution will track tens of millions of shipping containers annually as well as significantly reduce delays and fraud, resulting in billions of dollars in potential savings in the logistics industry. Not only will the solution dramatically improve global trade logistics, but the World Trade Organisation estimates that reducing barriers within the international supply chain could increase worldwide GDP by up to five percent, and total trade volume by 15 percent.

To Conclude

With rapid global adoption, the value of Blockchain technology speaks for itself. It can be argued that at the heart of many useful Blockchain applications are two basic human needs: security and convenience. Wave's decentralized network ensures full transparency throughout the exchange of documents (thus tackling the security need), and IBM's digitization of trade workflows is a salient example of convenience. So, what's the message? What does it look like when Blockchain disrupts security and convenience in your industry, and how can you utilize your innovation to meet underlying basic human needs?

On November 19, 2018, FinTech-Aviv will host the Annual Blockchain Event at Rise Tel Aviv.

Nir Netzer is the Founding Partner of Equitech Financial Consulting and Co-Founder of the FinTech-Aviv community.

11/18/2018 / 06:56:59 Source: financemagnates

Technology | Banking | blockchain | decentralisation | finance | Ripple | | Blockchain|XRP|Technology
1 BTC=$3,981.20
1 XRP=$0.3251
1 ETH=$149.34
1 EOS=$3.91
1 BCH=$143.17
1 XUC=$2.54

News Feed 50

Ccn Neutral - Vanguard CIO Greg Davis Just Issued a Dire Warning for the US Stock Market read more.
02/12/2019 / 20:32:35
Bitcoin.Com Neutral - Two US Public Pension Funds Back New $40 Million Crypto VC read more.
02/12/2019 / 20:32:33
Ambcrypto Neutral - Bitcoin SV’s [BSV] Craig Wright hits back at WikiLeaks as Twitter feud escalates read more.
02/12/2019 / 20:30:20
Cointelegraph Neutral - Top 20 Cryptos Make Small Gains While Stock Futures and Oil Indexes See Green read more.
02/12/2019 / 20:29:00
Cointelegraph Neutral - Japanese IT Giant GMO Confirms Launch of Yen-Backed Stablecoin GYEN in 2019 read more.
02/12/2019 / 20:22:00
Cryptobriefing Neutral - Blockchain Advances In Africa, Overcoming Funding Hurdles read more.
02/12/2019 / 20:03:52
Newsbtc Neutral - Police Mistake Crypto Mining Rigs For Drug Den in Raid Gone Wrong read more.
02/12/2019 / 20:01:30
Dailyhodl Neutral - Bitcoin Lightning Torch Hits Tron CEO Justin Sun – Will Kobe Bryant Grab the Crypto Bounty Next? read more.
02/12/2019 / 19:58:54
Ccn Neutral - Exclusive: Bitcoin Cash Developer Amaury Sechet Comes Clean on Satoshi Claims read more.
02/12/2019 / 19:53:47
Cointelegraph Neutral - China: New Guidance to Implement Blockchain in Agriculture Finance Sector read more.
02/12/2019 / 19:51:00
Ambcrypto Neutral - #XRP/USD Price Analysis: Coin could soon go for a bullish ride read more.
02/12/2019 / 19:30:38
Cryptoslate Neutral - Morgan Creek’s Venture Fund Raised $40 Million to Invest in Blockchain and Cryptocurrency read more.
02/12/2019 / 19:30:19
Cryptobriefing Neutral - Western Union Acknowledges Experiments With Ripple Tech read more.
02/12/2019 / 19:14:03
Trustnodes Neutral - Former Prime Minister Bigs Up Bitcoin Amid Power Struggle in Bangkok read more.
02/12/2019 / 19:13:38
Newsbtc Neutral - XRP and Ripple Stand to Benefit if the World Bank and McKinsey Projections are True read more.
02/12/2019 / 19:00:56
Bitcoinist Neutral - Santander Bank Ordered to Keep Brazilian Bitcoin Exchange Account Open read more.
02/12/2019 / 19:00:47
Ambcrypto Neutral - Cryptocurrency News – 12th Feb – Ripple partner raises $1.7M, Coingate adds LTC LN support and more read more.
02/12/2019 / 19:00:32
Cryptoglobe Neutral - 'It's Virtually Certain': Bitcoin ETF Will Be Approved, Prominent Analyst Argues read more.
02/12/2019 / 18:50:00
Ccn Neutral - This US Senator Wants to Legalize Weed, Should Investors Get High on Pot Stocks? read more.
02/12/2019 / 18:30:33
Ambcrypto Neutral - Bitcoin [BTC] volatility works to investors’ advantage, says Financial advisor read more.
02/12/2019 / 18:30:05
Coinspeaker Neutral - SEC to Clarify ‘Overly Broad’ Regulation for Crypto Token Sales read more.
02/12/2019 / 18:30:02
Cryptobriefing Neutral - Pensions Count On Bitcoin Eggs For Retirement read more.
02/12/2019 / 18:24:55
Bitcoin.Com Neutral - Crypto Broker Voyager Digital Lists on Canada’s TSX Venture Exchange read more.
02/12/2019 / 18:21:57
Coingape Neutral - BitMEX Research On Next Global Crisis: Retail Banking & Payment System Unlikely to be Under Threat read more.
02/12/2019 / 18:21:13
Cryptopotato Neutral - Crypto Market Update Feb.12: Bitcoin Dominance Declines as Altcoins Skyrocket read more.
02/12/2019 / 18:15:52
Ethereumworldnews Neutral - EOS (EOS) Price Initiating Break Above the Daily Range Bound read more.
02/12/2019 / 18:11:41
Cryptoslate Neutral - Ripple Grants $2 Million to University of Kansas, Funds 29 Universities to Conduct Blockchain and Crypto Research read more.
02/12/2019 / 18:08:54
Cointelegraph Neutral - Mt. Gox Trustee May Have Crashed Bitcoin in 2018 by Dumping It on an Exchange, but There is Still Hope read more.
02/12/2019 / 18:08:00
Cryptonewsreview Neutral - Australian police mistake crypto mining rig for suspected pot farm read more.
02/12/2019 / 18:03:55
Newsbtc Neutral - Are TRX Prices Dumping Because “Changpeng Zhao and Justin Sun are Scheming”? read more.
02/12/2019 / 18:00:58
Ambcrypto Neutral - Cryptocurrency-hijacking malware ‘Clipper’ discovered on Google’s Play Store read more.
02/12/2019 / 18:00:16
Ccn Neutral - Gaming Giant Activision Blizzard Stock Could Get Crushed [Again] Tonight read more.
02/12/2019 / 17:59:00
Cryptopotato Neutral - #Weekly Price Analysis Overview Feb.12: Bitcoin, Ethereum, Ripple, Dash and Monero read more.
02/12/2019 / 17:58:39
Bitcoinmagazine Neutral - Morgan Creek Bags $40M Raise, Attracts Industry First Funding From Pensions read more.
02/12/2019 / 17:51:05
Cointelegraph Neutral - Software Giant Oracle Expands Its Enterprise Blockchain Platform read more.
02/12/2019 / 17:50:00
Cryptonewsreview Neutral - Firefox to offer cryptomining blocking in May release read more.
02/12/2019 / 17:36:48
Livebitcoinnews Neutral - Ethereum (ETH) Up 3 Pct at $120, as Bitcoin (BTC) Rallies 5 Pct at $3,600, Litecoin Also Poised to Rise read more.
02/12/2019 / 17:36:29
Cointelegraph Neutral - Payment Processor Netpay to Integrate Blockchain-Based Tool: Report read more.
02/12/2019 / 17:32:00
Ambcrypto Neutral - Tron [TRX/USD] Technical Analysis: Cryptocurrency succumbs to the bear again as prices stagnate read more.
02/12/2019 / 17:30:21
Ethnews.Com Neutral - Distributed Digest: Tuesday, February 12, 2019 read more.
02/12/2019 / 17:30:12
Dailyhodl Neutral - Payments Giant Western Union Preparing for Crypto, Tests Ripple and XRP read more.
02/12/2019 / 17:20:41
Cryptoglobe Neutral - Cryptocurrency Analysis Firm Chainalysis Raises $30 Million read more.
02/12/2019 / 17:20:00
Ccn Neutral - Did TRON Acquire a Liability in $126 Million Purchase of BitTorrent? A Record 3,300 Lawsuits Hit Platform’s Users read more.
02/12/2019 / 17:16:51
Ambcrypto Neutral - Bitcoin [BTC]: WikiLeaks provides evidence debunking Craig Wright’s claim to be Satoshi Nakamoto read more.
02/12/2019 / 17:15:47
Ccn Neutral - Why Asset Manager Canaccord Says Tesla Stock Will Explode by 40% in 2019 read more.
02/12/2019 / 17:15:08
Cryptobriefing Neutral - Bitcoin Cash / USD Technical Analysis: Still Going Down read more.
02/12/2019 / 17:02:39
Ambcrypto Neutral - Ripple’s CTO clarifies that Interledger Protocol [ILP] is not connected to the RippleNet yet read more.
02/12/2019 / 17:00:29
Bitcoinist Neutral - Binance Chain Decentralize Exchange Testnet Will Launch Next Week read more.
02/12/2019 / 17:00:06
Coindesk Neutral - Co-Founder Quits Avalon Mining Chip Maker Canaan Over ‘Differences’ read more.
02/12/2019 / 17:00:06
Newsbtc Neutral - Bitmain S15 Firmware “Very Buggy”, Will This Claim Affect BTC Prices? read more.
02/12/2019 / 16:58:38

Latest comments: