Blockchain Technology and the Future of Financial Systems
Blockchains are new technology layers that rewire the Internet and undermine to avoid more seasoned heritage structures. Trust lies at the center texture of the blockchain organizer which can possibly evacuate intermediaries and disturb their current working models. This progressive and basic convention enables transactions to be at the same time and safely kept up using a decentralized open or private record.
Blockchain structure can for all intents and purposes record everything of value and will challenge and disrupt present incorporated plans of action and the financial sector.
The present financial framework is complex and that leads to potential risks. Another decentralized blockchain financial framework made conceivable with the utilization of digital currencies (Bitcoin, Ether, future Crypto $ | £ | €) could be significantly less difficult by evacuating layers of intermediation. This could help build collaboration amongst banks and etch trust and respectability at the center of the new blockchain financial framework. Moreover, the chance to decrease system risk will rise by moving towards a carefully designed decentralized public/private ledgers where a single version of the truth will triumph.
By moving money in various ways could open up the likelihood for various sorts of financial products. We could see monetary consideration expanding over the world because of the new blockchain financial framework. New computerized monetary forms will connect people who are at present avoided to the new financial system, lower barriers to entry and enable greater competition.
It has been widely acknowledged that blockchain offers an opportunity to reduce costs, to improve efficiency, to reduce risks and, overall, to provide a better customer service, which ultimately is what financial services need to be all about.
Department of Management Studies
Ms. Smriti Dua