Using Blockchain: Handling Money

Hi there!

Blockchain is typically associated with cryptocurrency, but there
are plenty of useful applications being worked on now that may help
your business get a head start on the competition.

In our last email, we looked at data asset management.

Today, let’s discuss handling money.

Blockchain technology and distributed ledger technology have a massive
opportunity to disrupt the current banking industry by taking out the
middleman on some of the key services traditional banks provide,
including the following:

• Payments: by establishing a decentralized ledger for payments,
blockchain technology could facilitate faster payments at lower
fees than current banks charge.

• Clearance and settlement systems: distributed ledgers can reduce
operational costs and bring us closer to real-time transactions
between financial institutions.

• Fundraising: Initial Coin Offerings (ICOs) are experimenting with
a new model of financing that unbundles access to capital from
traditional capital-raising firms and services.

• Securities: by tokenizing traditional securities like stocks, bonds,
and alternative assets — and placing them on public blockchains — blockchain
technology could create more efficient, interoperable capital markets.

• Loans and credit: by removing the need for intermediaries in the loan
and credit industry, blockchain technology can make it more secure to
borrow money — and provide lower interest rates.

• Trade finance: by replacing the cumbersome, paper-filled bills in the
trade finance industry, blockchain technology can create more transparency,
security, and trust among trade parties worldwide.

• Customer KYC and fraud prevention: by storing customer information on
decentralized blocks, blockchain technology can make it safer and easier
to share information between financial institutions.

Blockchain technology provides a way for untrusted parties to come to
an agreement on the state of a database without using a middleman.

By providing a ledger that nobody has to administer, a blockchain could
provide specific financial services like payments or securitization without
the need for a traditional bank.

Further, blockchain allows for the use of tools like smart contracts,
which are self-executing contracts based on the blockchain.

They could potentially automate manual processes from claims processing and compliance to distributing the contents of a will.

In in the next email, we’ll look at some tips & tricks of working with
cryptocurrency.

Until then,

🐷 WUPPLES®

P.S. Like 🐷 WUPPLES® tips & tricks? (share with friends...thanks!)