What is the scope of blockchain in finance w.r.t downfall of cryptos

Copyright © Blockchain Council www.blockchain-council.org
What is the scope of Blockchain in finance W.R.T
Downfall of cryptos?
Cryptocurrencies have had an eventful week with the anticipation of the Bitcoin
Cash chain split plunging the market into new lows for 2018. The sudden fall in
cryptocurrencies has led several people to question the future of blockchain
technology in the world of finance. The biggest ICOs from 2017-18 are still
developing their products and are far from their release, so the current drop has
certainly shaken the trust in the cryptocurrency market. Can Blockchain
Technology remain relevant and make an impact in finance without
cryptocurrencies?
2

Blockchain in finance
As the name suggests, a blockchain is a series of blocks linked together according
to a consensus protocol. The consensus protocol ensures that all of the network
participants agree upon the same shared ledger. The blocks contain transaction
data, and the data is freely available to all the network participants.
3

This makes blockchains the next step in the world of accounting as it improves
upon double-entry bookkeeping, a technique that was developed over 700 years
ago by Italian merchants. The shared ledger combined with the power of smart
contracts opens up a world of applications in finance which was not possible until
now.
4

Smart contracts can help us create advanced financial instruments that can form
the basis of the next generation of credit arrangements. Collateralized loans
without going through a centralized bank in virtually any part of the world can
improve the credit availability for a large number of people in developing countries.
Using a shared ledger to facilitate loans backed by mortgages could help keep the
process fair and prevent the kind of bubble that resulted in the financial crisis of
2008.
5

Smart contracts have enabled for the first time in the history to create
programmable money. By keeping the money in check using smart contracts, we
can prevent big banks and corporations from going bankrupt because of human
malfeasance which costs billions in taxpayer money for bailouts.
6

Blockchains in Banking
The banking sector stands to gain a lot by replacing their outdated systems for
settling transactions with the newest offerings from the likes of Ripple and its
competitors. Ripple is designed to be a high throughput blockchain which could
handle upwards of 1500 transactions per second.
7

Ripple achieves this by sharing the authentication privileges with a limited number
of trusted nodes that can be run by banks themselves or public institutions such
as universities. This gives banks with official records of asset ownership as the
authenticators are legally responsible for processing transactions honestly.
8

Switching over to Ripple’s xRapid service could help expedite their transaction
settlements many times over while at the same time reducing their costs by over
40%. Ripple’s two main offering for bank-to-bank transfers are xCurrent and
xRapid. xCurrent similar to the SWIFT messaging system and allows for
settlement in cross-border payments but still requires traditional banking accounts
to be held by participating banks.
9

The real benefits of blockchains can, however, be seen in the xRapid system
which utilizes Ripple’s native XRP token. xRapid significantly improves speed and
reduces costs for cross-border payments by using XRP as a bridge asset between
currencies thus eliminating the need for traditional banking accounts.
10

Blockchains Beyond Cryptocurrency
By 2018, blockchain technology has certainly gained enough footing in the
financial and banking industry that they can function independently of
cryptocurrencies. However, when employed a handful of corporations for profit,
blockchains lose one of their most significant advantages that brought them to the
forefront of the fintech revolution – decentralization.
11

Bitcoin has value not because it is free of any government backing; not despite it.
Therefore, the benefits of decentralized trust are only there if cryptocurrencies
continue to operate without meddling from governments or corporations.
12

Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain
space today.
● Certified Blockchain Expert
● Certified Blockchain Expertv2
● Certified Blockchain Developer
● Certified Smart Contract Developer
● Certified Solidity Developer
● Certified Ethereum Developer
13

THANK YOU!
Any questions?
You can mail us at
hello@blockchain-council.org
Copyright © Blockchain Council www.blockchain-council.org 14

What is the scope of blockchain in finance w.r.t downfall of cryptos

More Related Content

What's hot

Similar to What is the scope of blockchain in finance w.r.t downfall of cryptos

More from Blockchain Council

Recently uploaded

What is the scope of blockchain in finance w.r.t downfall of cryptos