Over the past decade, technological advancement has improved the way the world does things, and the banking industry is not left out of this.
The introduction of blockchain as a potential solution to reinvent the monetary market, payments, and financial services, offers excellent possibilities.
However, since the advent of blockchain, we need to question whether blockchain is a threat to the banking institution or complementary technology.
According to Investopedia, many key banking institutions have started showing interest in technology.
A blockchain is a decentralized, secure database to store information on assets and transactions across a peer-to-peer network. This implies that it keeps track of who owns and transacts what through a cryptographically linked block.
What are the features of blockchain that make it a safe and secure mode of exchange?
Every technology known to man possesses unique attributes that stand out to the user and continue to use or patronage. Some of the features of blockchain that enable the same are but are not limited to the following:
Security: Blockchain technology is coded in a data structure with inherent security qualities. According to IBM, a blockchain is a digital block containing a record of transactions. Each block connects to blocks before it, making it difficult to tamper with a single record. In addition, the utilization of digital signature features gives blockchain an edge over other transactional technology. This makes it resistant to fraud or change in an individual’s data. Therefore, alteration of a record or invalidity of a transaction requires a signature.
Decentralized System: A decentralized system has the power to store and transact without oversight or control of a single person, organization, or government.
Irreversible Hashing: Hashing is a complex mechanism, and it’s impossible to alter or reverse. This complex mechanism prevents the use of a public key to reverse-engineer the private key. Thus, a single change in the input could lead to a completely different key output. This helps in detecting minute changes.
Immutable: Blockchain technology is structured to operate immutable ledgers as one of its many values. This means that a centralized database is prone to hacks and fraud since it requires trust in some third-party intermediary to keep the database secure. Blockchain keeps its ledgers in a never-ending state of forwarding momentum. Every node on the system has a copy of the digital ledger. This promotes transparency and makes it corruption-proof.
How is Exchanging on blockchain different from conventional transfer modes like net banking?
Blockchain is a decentralized and advanced form of transactional technology, an appropriate ledger distributed across many computers. This makes it almost impossible to fake or double-spend, unlike net banking, where users can mistakenly double-spend due to a wrong network or a glitch in the bank network.
In addition, net banking is an offshoot of conventional banking systems tapping into technology for easy banking. However, this system has in place supervision and regulations by the government to restrict some transactions. But blockchain has little government or private influence, allowing users to transact instantly without incurring charges.
Where does blockchain meet banking?
The nature and feasibility of blockchain are roiling the financial industry. However, there is much ado about nothing regarding the risk exposure of rated financial institutions. Thus, a blockchain is a speculative instrument in judgment, and a drop in its market value would be a minor ripple in the financial services industry.
Blockchain presents the potential to automate paper-based operations, thereby improving the trade efficiency of financial institutions. Thus, we can say that the adoption of blockchain by financial institutions presents more advantages than disadvantages.
Advantages of the union of Blockchain and Banking
With blockchain, considerable changes can be made to the conventional banking industry now and in years to come. Some of these advantages include the following:
Raising Funds: Every organization often needs to increase funding to carry out its operations without a hitch successfully. Many financial organizations exchange their stake for cash to raise funds through partners to take action on value and equity.
Financial institutions adopting blockchain could expedite the process of raising funds in a variety of ways. Some of the ways include Initial Exchange Offerings (IOEs), Equity Token Offerings (ETOs), and Security Token Offerings (STOs). The popular option here is the STO because of its legal protection.
Quick Payment: One of the merits of blockchain banking intersection is offering a quick and faster mode of payment. With this new technology, banks can enjoy a decentralized system and channel of payment. This provides a higher quality of service, more robust security, and lower charges.
Smooth Settlement and Clearance System: When it comes to transporting money throughout the world, many banks confront logistical hurdles. Before reaching its destination, a basic bank transfer must pass through a complex chain of intermediaries, such as custodial services. Blockchain has the potential to allow banks to settle transactions directly and keep better track of them than traditional methods.
What is DeFi?
DeFi is a short form for decentralized finance. According to Coinbase, with DeFi, users can do most of the things banks support and more in a much faster way that doesn’t require third-party paperwork. In addition, DeFi is global and operates peer-to-peer features that are not routed through a centralized system.
How is CoinFantasy venturing into the fields of DeFi and Blockchain with their P2E game?
The advent of blockchain and DeFi introduced games where people not only play games but also earn. In light of this, CoinFantasy has been at the forefront, grabbing the opportunity in the blockchain gaming industry.
CoinFantasy combines the function of blockchain and DeFi. The company is in the business of providing users with a sound portfolio management system.
Users can access game pools by staking their tokens and un-staking them at the end of the game. This keeps CoinFantasy ahead of other gaming platforms in the promise of “no loss” gameplay.
Not long after the release and gradual embrace of NFTs, CoinFantasy gives endless opportunities for players to mint. Moreover, users can also collect, trade, and make passive income with this platform.
In conclusion, with the daily improvement in technology, there is a high chance that Blockchain and DeFi will continue to change the face of the banking and gaming industry. CoinFantasy will be at the forefront of exploring these opportunities as they unfold. So head over to CoinFantasy and immerse yourself in the world of crypto fantasy gaming.