Because of the enormous features and exceptional characteristics of the blockchain technology, apparently, it has already created the rift in almost every industry. The financial sector also has witnessed its potential because of its decentralized ledger system.
In the initial days of the blockchain, technology was developed to backed the cryptocurrency Bitcoin, where every single transaction was encrypted in the blocks, making the entire system secure and where every record is kept saved in the distributed ledgers.
With the gaining popularity of cryptocurrencies, and with the emerging of new cryptocurrencies like Goldencoin, the majority of the people started to show their interest in the technology behind the crypto coin.
Eventually, the various exchanges, funds, and the government sector began to invest in the development of this technology. This is because of the endless possibilities are shown by the blockchain, whether you talk about keeping and validating any assets, bonds, commodities or any currency. Blockchain technology can be used anywhere.
Let us understand that how a blockchain is bringing the revolution in trade and finance sector.
Blockchain in Trade and Finance Sector
Because of the Single Digital Chain System
The possibility of this adaptation could be because of the single Digital Chain System, as it handles and maintains the entire finance and transaction records using the distributed ledger of the blockchain. We can also say that using this technology, all the parties, customers, bankers, everyone will be able to access the same source of information.
This leads to the reduction in the usage of paperwork to complete the transaction, moreover, also result in the increment of the transparency.
Because of Streamline processes
The finance sector is exploring the use of the blockchain technology in order to streamline the process which not only will increase the utility but also will do the cost-cutting.
The banking sector has started collaborating with the regulators to develop the frameworks for the banking sectors.
Because of the Automation
The implementation of the blockchain would also offer the core benefits of it, such as the processing of the transaction will be done on the real-time basis, the automation of the smart contracts and at last the transparency because of its open nature.
This can also extend the possibilities beyond the international trade finance, for trade financing processing, integration with global payments and de-centralized document management system.
What’s next?
For Goldencoin, the blockchain has already been distinguishing factor when it comes to security. If in the coming years the engagement of blockchain with the economy is going to be implemented through then we can see the capabilities of blockchain solving the real-life business challenges, helping the clients reimagining the entire process of every single transaction.
Over to you
There is no doubt that the blockchain has significantly drive security within the trade finance space, and potentially lowers down the implemented cost. Don’t forget that this is going to be the massive shift in the economic sector globally. Therefore, it possesses the various risks and challenges to encounter before going to the mainstream.
