What does Blockchain Change Across the Finance Industry?
For the payments industry, blockchain’s distributed ledger technology improves the efficiency of the payment processing system, increases transparency and traceability, and reduces operating costs. It increases transparency and reduces the need for middlemen in payment processing. Its distributed, real-time verification of transactions ensures high security of transactions and high transactions-per-second throughput. In the competitive cross-border payments arena, blockchain enables near-instant and transparent payments, eliminating complex and opaque fee structures.
Smart contract is another use case for blockchain that we had covered earlier. It uses blockchain to program a contract based on predetermined outcomes in a workflow. Accounting and finance firms can use them to automate invoices for more manageable accounts receivables, increase efficiency, and reduce costs and time spent.
All these use cases of blockchain technology in FinTech Industry are gaining ground. The global blockchain technology market size was valued at $5.92 billion in 2021 and is expected to grow at a CAGR of 85.9% from $10B in 2022 to $1.4 trillion in 2030. However, a key factor for its growth and adoption is how blockchain is regulated across sectors and countries worldwide.