How Blockchain Enables a New Era of Digital Financial Investments
Of course, by now you've heard about blockchain technology, a digital ledger used to record financial transactions. Since the blockchain can be accessed anytime, anywhere, the information recorded on it is public and verifiable - making it a great way to manage your finances. While many companies have traditionally used banks and other traditional institutions for financing, blockchain technology has the potential to revolutionize the way they manage their financing.
There are already companies using blockchain. To learn more about some of them, see the list below. Now is the age of digital financial investment, and these companies are paving the way for change.
1. Zen Protocol
In the same way that Bitcoin uses the blockchain for peer-to-peer currency transactions, Zen Protocol is a platform on which you can conduct peer-to-peer transactions. What makes this possible? In a way, it's the company's smart contracts that hold the escrow and enforce agreements. Additionally, the Zen protocol is integrated and can be merged with Bitcoin, which means you can convert any smart contract into a Bitcoin smart contract.
To learn more about Zen and its integration with Bitcoin, check out this blog post. In this way, you can learn about Zen's parachain, which observes the Bitcoin network.
2. Primechain technology
One of the biggest benefits of blockchain is that it makes transactions transparent. So, from a banking-related issue and a blockchain perspective, you can more easily track traditional issues -- like money laundering.
That's why primechain Technologies makes such a big difference. The India-based company serves the country's banks so its clients can implement blockchain solutions in anti-money laundering enforcement, cross-border payments, asset registration and loan syndication. Blockchain has great prospects for future use by banks, such as running more efficient background checks on customers.
3. IBM
IBM is currently creating a blockchain technology that will be used by seven of Europe's largest banks, including HSBC, with the idea of facilitating international trade for small and medium-sized enterprises. Therefore, in addition to providing the various solutions mentioned above for banks, blockchain can also be used to track payments.
Basically, this new blockchain, known as the digital trade chain, will be used to help parties track, manage and complete transactions internationally. When the goods are sold, and the goods arrive at the address of the person who bought the goods, the blockchain triggers the payment. This is much faster and more accurate than what we usually use today.
4. Bit Salary
Another important aspect of finances for any company is how it chooses to pay its employees. For remote workers in particular, this tactic is gaining popularity, considering the typical automated process of paying payroll: depositing money into a U.S. bank account every month, paid to places around the world can be prohibitively expensive.
Fortunately, Bitwage came up with a solution. This is the world's first Bitcoin-based payroll service, meaning any employer will be able to avoid the costs associated with moving funds from one country to another, as well as the time it takes to complete the process. As Bitwage founder Jonathan Chester explained, “You can actually see exactly where the money is going throughout the process.”
5. Chain companies.
Finally, there are chain companies. The company works with financial markets, such as those on Wall Street, to revolutionize its traditional way of trading currencies. Basically, Chain Inc. is building a suite of blockchain-based technology specifically for use by banks, stock exchanges, and credit card companies. These technologies will enable these entities to rapidly move, store, trade and manage financial assets. Furthermore, the movement of these assets will be moved safely and with much less risk to the overall system.
The company is already working with big players like Nasdaq, Citibank, Visa and Orange. Their participation and interest is proof that blockchain technology can make a big difference. This is not surprising. Chain Inc., according to its website, “is on a mission to build a smarter, more connected financial system. We build an encrypted ledger that supports breakthrough financial products and services.”
As can be seen, blockchain technology has the potential to change the way businesses around the world work, especially when it comes to financial technology. This is truly the age of digital financial investing, and that will only grow over time. Soon, blockchain will be the minimum technology expected, needed by any company that wants to be taken seriously by its customers and potential investors.
Is your company considering using blockchain technology? For what purpose? Has any of the above companies inspired you to change the way you use digital financial technology?
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