How Blockchain Technology Will Affect Business Platforms blockchain | Page 7

Financial Services
Traditional
a
tendency
frameworks
to
be
have
and manage capital this can be
unwieldy, costly and unsafe, especially with
encryption
insurance
properties
firms
to
enable
grab
the
mistake inclined and very slow. regards to cross border exchanges. ownership of asset to be insured
Intermediaries are often expected to
Each
party
simultaneously,
for
intervene the procedure and resolve example, broker, caretaker, or the
clashes. This costs capital, time and settlement supervisor, keeps their
stress. In comparison, users will find own particular records which could
blockchain to be less expensive, more lead to human error and thereby
straightforward, and more successful. lead to inefficiencies. The blockchain
There is now a growth in number of ledger decreases these foreseeable
financial service providers who are errors by encoding the records. In
utilizing this framework to present the meantime, the ledger streamlines
advancements, for example, smart the procedure, while crossing out the
contracts or securities. The previous requirement between intermediaries.
naturally pays bondholders their
coupons once certain prearranged
terms are met. The last are digital
contracts that self execute and update
automatically, when the terms are met.
Examples of blockchain financial
services
Resource Management: Trade
process and Settlement
Conventional
trading
process
forms where parties trade and
Insurance: Claim processing
Payments: Cross Border Payments
The worldwide payment area is
mistake i nclined, expensive, and
open to illegal tax avoidance and
money laundering. It takes days
if not longer for cash to cross the
world. The blockchain is as of now
furnishing
payment
arrangements
organizations,
with
which
offer end-to-end blockchain fueled
settlement
administrations.
In
2016, Santander became one of
Claim handling can be a baffling and the primary banks to implement
unpleasant arrangement. Insurance blockchain to its payment app under
processors need to swim through false
staff trial to make global installments
claims, divided information sources, 24 hours per day within the region
or
surrendered
arrangements
of 24 EU countries and USA only
for clients to handle these forms (Oscar Williams Grut , 2016 ).
physically. There is high probability
of human error. But with the help of
blockchain, an ideal framework can be
created to implement transparency
and risk free administration. Its