Why fintech is embracing blockchain to ensure privacy and safety for consumers

blockchain in fintech

Blockchain technology and its implications are far reaching and not limited to cryptocurrency – like many of us generally assume. It is evident from the fact that the government is promoting a dedicated Centre for Excellence in Blockchain Technology under the Ministry of Electronics and IT that aims to harness Blockchain to paly a bigger role in public lives.

Blockchain technology has been a part of the Indian startup culture for some time now. Media and even the government departments have been known to chatter about it now and then. And not without reason, blockchain is a platform that allows the recording of information in an extremely secure way, making it near-impossible to alter or break into the system.

As described by Blockchain Council, “Blockchain is a peer-to-peer decentralized distributed ledger technology that makes the records of any digital asset transparent and unchangeable and works without involving any third-party intermediary. It is an emerging and revolutionary technology that is attracting a lot of public attention due to its capability to reduce risks and fraud in a scalable manner.”

Every transaction done through a blockchain ledger is recorded reliably – and past transactions cannot be altered. Ideally, every transaction done will be tamper-proof.

Moving beyond coins:

Due to the complexity of the blockchain technology, the government has set up a Centre for Excellence in Blockchain Technology and putting it to good public use. One example of such use is in the Digidhan portal. Blockchain is being utilized for monitoring and analysis of digital payments and transactions on the platform.

PwC in one of its reports (Time for trust: How blockchain will transform business and the economy) predicts that Blockchain tech is set to enhance over 40 million jobs globally and add a value of $1.76 trillion to the global economy by 2030. Based on this report, and many others like it, it is a safe bet that blockchain holds immense potential – especially in the Financial Technology and related sectors. I fact, any space that requires absolute safety of any transaction is a must, Blockchain becomes a leading contender in that space. PwC also mentions in its report that Blockchain is used primarily for fund transfers, digital identity, and payments infrastructure.

Blockchain technology is still evolving – and creative engineers are unlocking new potential use cases every day. This is indirectly moving us towards a much more sophisticated financial infrastructure that is definitely the need of the hour – given the increasing reports of financial frauds happening digitally throughout the world.

The future of blockchain

If we focus just on India, the government has been promoting and helping startups through various schemes and has levelled the playing field for smaller players for a shot at big success. Their contribution to the economy has been acknowledged time and again by high-level officials on the international stage, inviting big players from the west to invest and join the party. Based on this support by the government in the country, and the recent trends in the BFSI space itself, it is safe to assume that blockchain has a bright future, not only globally but also within Indian ecosystem as well.

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