The FinTech market has been around for a very long time. It’s been the cornerstone for years, everything in the world works because of the FinTech system. But there’s a new kid on the block. It’s blockchain technology.
Growth and Expansion
Blockchain technology can be a great way to help the fintech market expand to what it needs to grow and achieve its goals. At the same time, the challenges of blockchain technology can also threaten the existence of the FinTech market. FinTech is very closely related to regulations and controls, while blockchain is the polar opposite, at least for now.
The bigger question is how to navigate through the tribulations of these challenges and get to a point where blockchain technology is helping the fintech market and finding a balance. Such balance would allow fintech to operate more efficiently than before.
Great opportunities in blockchain
Blockchain technology has many applications but comes with many unavoidable challenges. This is similar to every part of your life, in life and in business. It’s inevitable. That’s how life and business work. Such is blockchain technology, maybe just a little more than usual.
The value of blockchain in the fintech space should never be underestimated. I look at the existing FinTech more like the old postal system or Telegram, not the new Telegram app but the actual old Telegram where you send messages in a very slow and tedious process.
Blockchain tech is the modern-day email and phone and all chat applications that we currently have. It’s so different, it’s like two different centuries, or it’s far apart. And now it is time for us to replace or upgrade the existing FinTech system with the blockchain and decentralized revolution that we are having.
If you look at the existing banking and FinTech systems that we have right now, there are massive delays in money transfers and a lot of paperwork, a lot of manual intervention. It’s also expensive, of course, not when you look at Ethereum’s gas price during demand times, but it’s usually expensive.
Total spending isn’t just the fees you’re being charged for a transaction, it’s the fees to the economy, and the number of people working (like huge numbers) around the world to make this whole financial system work. And it’s not like the moment everyone goes on vacation; the financial system keeps working. It doesn’t. We need a system like a blockchain, largely independent of people.
Let’s get the obvious things out of the way. We don’t need intermediaries. When we use blockchain we can reduce the financial back office and also increase transparency between parties if you use transparent blockchains, not the ones with privacy. And we have a real-time track which is the best at the moment.
There are different ways you can work with blockchain in FinTech. One is that you can go with a new solution and create your own blockchain. Or you can use an existing forever and customize it from there to suit your needs and features. So regardless of your choice, these bottlenecks are pretty much the same for you, you need to make sure you overcome them efficiently every day.
Why FinTech will have to adopt blockchain
It will be a long time before blockchain is understood by everyone. But at least from an organizational point of view, people in the organization, people who work and deal with decision making and how it can be used should understand at this level.
If you look at the current blockchain crypto space, at least until a year or two ago, it was completely dominated by geeks, these techs, technicians, the actual programmers, and they didn’t make it easy for the general public to understand how it works. It’s pretty much the same now.
This is not easy for people in the business world to use, function, dive into, understand what blockchain is, and deal with. So many companies currently trying to adopt blockchain technology as an organization are hiring third-party developers and consultants because they don’t have this resource in-house.
Blockchain is not a technology, but a new philosophy. It’s about how you think. It’s decentralization. Blockchain fundamentally changes everything we currently know and believe in the world.