Blockchain is, without a doubt, the buzzword of the year in the technology sector and it promises to change the technology world as we know it. It consists of blockchains with permanent access to all the transaction information that users carry out, acting as an intermediate and without the risk that this data may be altered by other people. Blockchain contains several features that are considered compelling to financial services; it’s decentralized, secure, efficient and transparent, meaning that every transaction is validated using cryptography, the exchange of information is fast and easy, and everything is documented.

This innovative and cutting-edge technology has the power to radically change the way that financial services operate. In the case of banks, a large number of entities still have systems that are more than 30 years old, adapting to new demands only to ensure customer satisfaction or to remain competitive. In this era of technological disruption, the traditional business model is under attack, and so it should be. But the banks aren’t the only ones that will reap the benefits of this new technology. Financial transactions of any kind, not only monetary, can also be registered through blockchain.

So, these smart contracts have already begun to be used. These types of contracts are not written on paper, but in virtual code and are automatically implemented once the parties agree to the terms. In this way, if the first condition is met, the consequence that this entails is automatically activated.

Due to the fact that blockchain originally emerged as the underlying mechanism of the bitcoin currency, many believe that’s its potential and advantages were limited to the financial sector. However, any industry from financial to entertainment can expect to experience huge business model disruption as blockchain technologies continue to take hold. For example, thanks to blockchain the industrial sector has been able to follow the traceability of a product and track it from start to finish. Energy companies also launched energy trading last year, which created the opportunity for companies to buy and sell energy directly without the need for intermediaries.

There is still a long way to go and we continually wait for the emergence of new blockchain technologies as we move towards higher and higher transactional security on the internet. Meanwhile, at Brintia, we have already started working with it and we have a lot of exciting things to come! It’s time for your company to jump on the blockchain bandwagon and be heard above the noise.

Written by: Brintias Team