Digital assets are becoming mainstream, and BlockX provides all the tools to empower global fintech platforms with compliance and global currency access
Fintech is an amalgamation of “finance” and “technology”, where both come together to create a multiplier effect which is much more significant compared to them individually. It’s a fascinating concept (and an exciting industry!), whose current state is mainly being driven by two trends:
Blockchain technology is most widely known as the tech responsible for all the cryptocurrencies out there like Bitcoin, Ethereum, and others, which easily makes it one of the most vital recent innovations in finance.
The most essential advancement brought to us by blockchain tech is distributed trust - via the removal of third parties or intermediaries to facilitate transactions and reduce the cost and time of trading. And perhaps the biggest reason why the fintech industry is fascinated by blockchain technology is that the attributes of blockchain allow individuals to build trust faster and have the potential to change the overall financial outlook and infrastructure.
The most high-profile and widely recognised use of blockchain technology in fintech has been cryptocurrencies that allow people to manage their money without needing a bank.
Those who purchase cryptocurrencies like Bitcoin, Ethereum, or any other coin have the choice to hold their currency in their own digital wallets. These wallet holders have a private key that they can use to send their crypto and a public address that they can use to receive payments in crypto from others.
Such individuals - who have their private keys - are the sole owners of their assets. This is traditional currency, of course, where the banks hold their money for them.
In this way, Bitcoin and other cryptocurrencies give all the freedom and ownership back to the people, where everyone gets to manage their own wealth, and you don’t have to rely upon or trust anyone with your money.
But that’s not all that the blockchain does for fintech.
There are several blockchain use cases in the financial services industry, such as:
In token form, these assets gain wider market access via increased connectivity and also the possibility of fractionalized ownership. This results in decreased cost of capital and increased liquidity.
Blockchain effectively streamlines asset and stakeholder management by allowing:
Blockchain technology helps address transactional challenges and some of the most pressing needs of developing governments in the world, such as digitization of institutional functions and modernization.
Blockchains are inherently based on the concept of open data, which companies and governments can rapidly learn from, test out, and develop new and more efficient practices for facilitating and conducting trades in the market.
They allow the reduction of regulation and compliance costs through the removal of regulatory restrictions due to their open nature, which in turn open new avenues and markets for the governments and companies to create and develop their wealth in.
Another vital feature of Blockchains that helps them in this area is their extreme level of security, as they are explicitly designed to function in conditions of absolutely no trust between parties.
Blockchain offers a world of new opportunities and creations that were not possible before. Therefore embracing it helps us create a future that we dream of where billions of people worldwide can have ready access to their data without any regulatory oversight.
Digital assets are becoming increasingly mainstream, and the need for the right kind of infrastructure that combines efficiency and real-world compliance is now paramount. It’s why BlockX is developing the tools and infrastructure that can facilitate global fintech companies and platforms in developing real-world financial and DeFi applications completely compliant and safe for institutions, individuals, and sovereigns.
BlockX is built by a team that combines the best of the finance industry, blockchain, and technology. It is an alternative to the Ethereum chain for financial products, services and DeFi. The BlockX network offers all the critical tools and services we need today to empower global fintech platforms to gain worldwide currency access and complete compliance.
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