Blockchain in FinTech | Facts & The Best Apps
When people hear the word “blockchain”, they immediately think of cryptocurrency, investment, and crypto trading. But the circle of influence of the blockchain is wider.
In a large number of cases, blockchain technology is capable of modernizing almost any industry: insurance, healthcare, logistics, and others. In particular, one of the most suitable uses for blockchain is undoubtedly the field of finance.
Before we talk about the impact of blockchain on fintech and the projects that have emerged because of this, let’s remember what blockchain is.
Blockchain Technology – Brief Explanation & Benefits
Blockchain is not just a newfangled word or technical jargon, it is a technology that has made a real technological breakthrough that has affected almost all sectors of the market and, of course, this technology has seriously reformed the sphere of fintech.
What Is Blockchain?
Blockchain is a chain of blocks that form a database. The devices that store this distributed data do not share a common server. Each block is an ordered record that contains a link to the previous block and a timestamp, and the resulting list of blocks within the database is constantly growing.
Basically, “blockchain” is a digital register of completed transactions, deals, or contracts.
After blockchain and crypto itself became popular, every experienced software development firm like MLSDev started to receive orders to develop perspective fintech services.
What Are The Benefits of Blockchain?
Of course, today the technology is especially widely used in the cryptocurrency market. But traditional financial institutions are also interested in using it.
Because it allows them to solve many problems:
- You can significantly reduce the risks of counterparties, due to an instant check of the history and reputation of each of them, because the blockchain allows you to carry out full verification of the company without the participation of a trusted party.
- The use of blockchain makes it possible to conclude contracts and agreements without the participation of lawyers and bureaucratic processes, to make investments in a secure way using smart contracts, to effectively manage risks, etc.
- Due to blockchain technology, you can get rid of participation in financial transactions of third parties, you can store and transfer funds to each other without the participation of a bank.
TOP 7 FinTech Apps in Blockchain
These fintech apps help to bring cryptocurrency to a new level – a level of worldwide recognition, a level of use by many large companies.
Maybe you will find an app that can help you to develop in this field.
TOP 1- We.trade
We.trade platform was developed by IBM in cooperation with 12 major European banks – CaixaBank, Deutsche Bank, Erste Group, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Société Générale, UBS, and UniCredit. The platform’s goal is to create a transparent, secure, and simplified trading environment for businesses and banks.
We.trade enables companies of all sizes to trade easily and securely internationally, helping to drive global economic growth.
We.trade platform has been fully operational with real transactions since July 2018 and operates in 13 countries. More than 400 companies currently use the platform.
TOP 2 – Circle
Circle has become one of the blockchain companies to be named among the Most Innovative Fintech Companies of 2019 by Forbes.
Circle develops P2P payment technology. One of the company’s main products is the Circle Pay platform, which allows users to store, send, and receive fiat money.
With Circle Invest, users can easily invest in cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Zcash, Monero, Stellar, 0x, Qtum, EOS, and BAT.
TOP 3 – Robinhood
Robinhood has been operating since 2013. The company has developed a mobile app that gives users the ability to invest in stocks, exchange-traded funds, options, and cryptocurrencies without fees.
The Robinhood Crypto platform, released in early 2018, allows users to buy and sell digital currencies such as Bitcoin, Litecoin, Ethereum, Ethereum Classic, Bitcoin Cash, and Dogecoin.
TOP 4 – Veem
Veem is a P2P payment platform built for small businesses. The company’s goal is to facilitate cross-border electronic transfers and payments to suppliers and contractors. Transfers are carried out in three ways: using the so-called treasury settlement (money transfer between bank accounts that are controlled by Veem), Swift systems, and blockchain.
Companies typically use Veem to avoid the complexities of going to a bank. Customers can make payments quickly through the Veem website, and the system decides on its own which transfer method to use – the customer will never know if he is using blockchain or another method.
TOP 5 – Ripple
Ripple is a cryptocurrency payment platform. This global system allows you to instantly transfer almost any currency anywhere in the world.
First and foremost, the platform was developed for the banking industry in order to simplify and speed up payments around the world.
To carry out transactions, Ripple uses its own blockchain network – RippleNet. At the moment, more than 200 banks and financial institutions have already joined the network, including Union Credit, UBS, Merrill Lynch, Santander, SED, and others.
TOP 6 – Stellar
The Stellar payment platform appeared based on the technological principles of the Ripple project.
Just like Ripple, Stellar allows users to make instant cross-border money transfers in any currency. Transactions are processed in 2 to 5 seconds, and the very low cost of commission makes the platform a suitable tool for micropayments.
Stellar operates on its own blockchain network. Organizations such as Stripe, IBM, Deloitte, Praekelt, Tempo Money Transfers, and others collaborate with the project.
TOP 7 – BitPay
BitPay is a service for making Bitcoin payments, thanks to which any entrepreneur can accept Bitcoin for payment. The company’s goal is the ubiquity and availability of cryptocurrency payments.
BitPay is currently the largest processing company for Bitcoin payments.
BitPay offers several types of services for ordinary users and entrepreneurs. This is a wallet, payment systems for business, and even a bank card issued with the assistance of Visa.
To find out more about the BitPay wallet, visit the Safe trading site for a detailed review.
The Future of Blockchain in FinTech | Final Thoughts
You’ve probably noticed that the minimum number of applications from that list are related to investments or trading. Blockchain technology introduces new solutions to businesses, payment methods, insurance.
Blockchain has every chance to transform the banking industry beyond recognition, making transfers and payment transactions faster, cheaper, and more reliable.
Thus, it can be expected that blockchain has really shaped the future of fintech. This technology will find its application not only in the banking and financial services market but also in many other market sectors, making our life more convenient and simple.