The cryptocurrency market is expected to reach $4.94 billion by 2030. Furthermore, advancements in blockchain are also making it a crucial technology in today’s world. In fact, it is becoming an upcoming field with great potential to change lives. That is why we see an increased interest in people to gain cryptocurrency education.
If crypto and blockchain work together, they could influence almost every industry, including finance, gaming, healthcare, retail, and e-commerce. But experts are still exploring whether these two will create an upward trajectory in fintech. As crypto is very volatile, it can negatively affect the fintech industry. In addition, fewer things are predictable on whether crypto and blockchain can still become an integral part of the finance world in a few years. So, let’s delve into further details of cryptocurrency and blockchain.
Table of content
- What is Blockchain?
- What is Cryptocurrency?
- How Crypto & Blockchain Affect Fintechs?
- 1] Impact of Blockchain on the Fintech Industry
- Removing the involvement of third parties
- Protects from Cyberattacks
- 2] Impact of Crypto on Fintech Industry
- Boost Fintech Market
- More Efficient Money Transfer
- Reduce Frauds
- Final Thoughts
What is Blockchain?
Blockchain is an immutable ledger that allows the recording and tracking of assets like cryptocurrency. It consists of blocks that are linked together to form a digital ledger. Further, the blocks of a blockchain network have cryptographic hash and transaction data. Despite this, they also contain information related to transactions’ time stamps.
Further, with the addition of each block to the ledger, a chain formation occurs. This chain, in other words, is known as the blockchain. Additionally, no one can change the information recorded on a blockchain network. Also, it excludes third-party involvement and increases transparency. You can opt for blockchain and cryptocurrency advisory training to know more about it.
What is Cryptocurrency?
Any digital currency with encryption algorithms is known as cryptocurrency. In fact, one can consider it as an alternative to traditional payments. This digital currency works as a payment method in a virtual accounting system. However, for using it for various transaction purposes, you need to create a crypto wallet. It is a tool to store your crypto capital that opens only through encryption keys. Cryptocurrency education can help you make informed decisions on whether you should be part of a particular cryptocurrency network.
How Crypto & Blockchain Affect Fintechs?
Cryptocurrency and blockchain will have a positive impact on Fintech in the future. Over the past couple of years, blockchain technology has leveraged the function of Fintech. It could replace existing financial frameworks and models. Let’s look at the need for blockchain and cryptocurrency in this industry.
1] Impact of Blockchain on the Fintech Industry
Blockchain is an emerging technology that can make unprecedented changes in the fintech industry. Here are a few ways how it will affect fintech:
Removing the involvement of third parties
Generally, third parties verify transactions on current payment channels. But by removing their involvement in between the processes, the process can get much faster. Also, it reduces the costs of transactions taking place as users do not need to pay any commissions. Additionally, every node in the blockchain verifies the transactions automatically. This, in turn, removes the manual work that possibly causes costly mistakes.
Protects from Cyberattacks
Cyber fraud cases are at their peak nowadays. As a result, it is challenging for firms to protect their data from fraudsters. However, blockchain technology can be a solution to this problem. The decentralized nature of this technology is helping to prevent cyberattacks. Blockchain networks connect with thousands of members, each of whom is liable to validate a transaction. Thus, cyber criminals can’t fool all the network members at once.
Thus, the blockchain network can deliver the highest level of blockchain and cryptocurrency security.
2] Impact of Crypto on Fintech Industry
The development of cryptocurrency will reshape the fintech space. Let’s see how.
Boost Fintech Market
Cryptocurrency is a digital asset that might become an alternative to paper money in a few years. Adopting crypto can open new markets for the fintech industry. Additionally, it can cover exchanges, privacy issues, ICOs, etc. Digital assets could reformulate fintech by taking the place of traditional payment methods. However, if customers are not aware of cryptocurrencies, it might be difficult for them to trust the new framework. Hence, cryptocurrency education is essential for each and every individual before its implementation.
More Efficient Money Transfer
Transactions of cryptos need no approval from a central authority, unlike traditional financial services. Moreover, organizations transferring funds through traditional systems also find it difficult to provide a seamless process. Additionally, these are time-consuming as well. Incorporating cryptocurrency can increase the pace of transactions. It’s a far better choice than old services.
Moreover, numerous cryptocurrencies like Ethereum, Bitcoin, Cardano, etc., operate over a decentralized ledger. As a result, they can receive, verify and pass transactions without needing financial authorities. By making the process direct, crypto networks reduce the cost of operating transactions. Hence, it boosts speed and provides convenience to many Fintech companies and customers.
Reduce Frauds
Fraudsters and heists increase the risks of financial fraud in fintech. Moreover, companies often find it difficult to tackle cyberattacks effectively. Also, it’s both costly and labor-intensive. This is where cryptocurrencies come into play. The secured nature of these digital assets provides verified transaction information. Also, these data are immutable, making it hard for fraudsters to manipulate a transaction.
Final Thoughts
Indeed, crypto and blockchain are coming up with solutions for various problems fintech is facing. Preventing frauds, money management, and boosting the fintech market are possible with blockchain technology and crypto. Learning more about these two entities can open ways for you to get jobs in any data-driven sector. Therefore, upskill yourself by enrolling in a cryptocurrency certification course today.
Get cryptocurrency advisory training on BLOCKCHAIN COUNCIL to become an in-demand expert. The platform contains wide options on crypto and blockchain-related courses you can explore. So ensure to check them out without any delay.
