A blockchain is a database which is used to maintain a growing list of records which is called as blocks. Each block consists of two sections, one is timestamp it is an update time information and another contains alike to the previous block. The blockchain is mainly, managed by a peer to peer network collectively adhering to a protocol to validate new blocks. The system set as, once a book is recorded the data in any block cannot be altered without the altering all the other subsequent blocks and collusion of the network. Blockchain can serve as an open, distributed ledger which record transactions between two or more than two parties in a permanent way.
FinTech stands for financial technology is an industry composed of different companies that use new technology and innovation. FinTech companies cover the banking and financial service sectors and mainly they compete with traditional financial institutions and intermediaries in the delivery of the financial services. Any startup or establishes financial and technology companies can be a Fintech Blockchain Development Company
who are trying to replace or enhance usage of financial services. Currently, the FinTech industry is growing at a 23% rate every year. In the year of 2007 -08 at the time of Global Financial Crisis when all the financial companies are facing loses. At that time the FinTech companies started to grow from the corner of the financial world.
Blockchain in FinTech
At the time when the banking and financial companies stop the innovation in financial sectors the FinTech companies raise. At that time the biggest challenge FinTech companies face was trust, how to make people trust them. As banks and other financial companies have huge cash as a reserve which they create best in the class secure network on which banking transaction takes place. On the other side, the FinTech companies lack fund which restricts them in procuring high-security system and in development. Here the blockchain technology comes.
The blockchain is cheap when it comes to developing and also it is highly secure. Using a blockchain in a fintech company they will be able to manage their financial product easily and securely. And now using a blockchain technology the FinTech companies are able to create various financial products under the less amount of budget to serve their customer. Also, with the series of blocks in the blockchain, a company can keep the complete lifecycle of a financial transaction. Overall we can say that blockchain has given the opportunity to create a safe and secure financial product and provide FinTech companies the opportunity to bring innovation in the financial sector.
To get the help of Fintech Blockchain Development Company contact to the Minddeft, they have a special team of experts in Blockchain Technology. To contact them call on +1 (415)968-5466
or visit them on minddeft.com