Key talks

 

• What is the FinTech tool
• What is blockchain
• Characteristics of Blockchain
• Uses of Blockchain

What is the FinTech tool?

FinTech Tools help to manage books, get paid faster, interact with the customers and employees. FinTech tools provide the opportunity to perform the streamline operations in the Financial Technology world.

 

What is the blockchain?

Blockchain is a chain of blocks where the word “block” refers to the digital information and the word “chain” refers to the storing in public databases.

 

 

 

 

How does blockchain work?

Blockchain technology works through the following process described in the diagram-

 

 

 

 

 

Characteristics or features of a blockchain

 

Blockchain cannot be corrupted

Blockchains provide immutability. It suggests that it can’t be altered or changed. This feature ensures that the technology will remain as it is created. This technology helps to maintain the internal networking system so that no one can hack it or alter it or steal information from it.

 

Blockchain technology is decentralized

There is no governing authority or and a single person who looks after the framework. A group of nodes maintains the network by turning it into decentralized. Because of this characteristic, the technology is of-

• Less failure

• User control

• Less prone to breakdown

• No third party involved

• Zero scams happen

• Complete transparency

• Authentic nature

 

The blockchain technology provides enhanced security

The information on the blockchain is hashed with cryptographic methods. This information on the blockchain hides the actual nature of data. Any input data is made to get through a mathematical algorithmic process producing different kinds of value, But the length of the information is always fixed. The hashing process is irreversible. A single change in the input method could lead to a completely different ID. Hence, small changes are not luxurious in the system.

 

The blockchain technology has distributed ledgers

A public ledger will provide information about the transactions and the participants. It is all open, nothing needs to hide. Though private or federated block chaincases are a bit different. But In those cases, people can see what goes on in the ledger. This is because all other users maintain the ledger on the network on the system. This distributed power is issued to ensure a better outcome across computers. This feature is important for blockchain technology because-

 

• There are no malicious changes

• There is a verification process of the ownership

• There are no extra favors provided

• There is managership

• There is a quick response regarding this

 

The blockchain technology has a consensus

Consensus algorithms are the reason for every blockchain thriving. The architecture is beautifully designed. Consensus algorithms are the core of this particular architecture. The network becomes trustless because of the consensus. Nodes will not trust each other. Still, they can trust the algorithms. That is why every decision on the network is a winning matter for the technology of blockchain.

 

In blockchain technology, there is a faster settlement

The blockchains are very fast, and these can easily be used to send money to their loved ones. Another important fact is the smart contract system. This allows the settlements to make faster for any kind of contract.

 

 

Uses of Blockchain

1. Payment processing and money transfers

2. Monitor supply chains

3. Retail loyalty rewards programs

4. Digital IDs

5. Data sharing

6. Copyright and royalty protection

7. Digital voting

8. Real estate, land, and auto title transfers

9. Food safety

10. Immutable data backup

11. Tax regulation and compliance

12. Workers' rights

13. Medical recordkeeping

14. Weapons tracking

15. Wills or inheritances

16. Equity trading

17. Managing Internet of Things networks

18. Expediting energy futures trading and compliance

19. Securing access to belongings

20. Tracking prescription drugs