Minimizing Errors & Authenticating Transactions through Blockchain Technology
Blockchain technology is fast emerging as one of the most promising innovations in the information technology (IT) sector. It offers a host of advantages, such as enabling faster settlement, omitting the need for financial institutions to authenticate transactions, minimizing duplicative recordkeeping, eliminating reconciliation, and reducing error rates. These benefits not only hold the ability to revolutionize the banking, financial services, and insurance (BFSI) sector, but also offers a world of opportunities for end-use industries such as consumer goods, IT, and media and telecommunications.
In order to improve the efficiency of the underlying financial processes and help minimize risks, investments have been made in the technology by various financial institutions in association with key technology players
The public blockchain network segment is anticipated to witness significant growth over the forecast period, registering a CAGR of 39.2% (according to a recent research by Grand View Research). The market is still in the development phase and is, therefore, marked by an extensive presence of new developments in the technology and its integration
Blockchain technology will also enable an irrevocable immediate settlement that will, in turn, restrict any kind of transactional changes once the request has been processed. These technological changes are expected to fuel market growth
Some of the prominent vendors in the market are Chain Inc.; Circle Internet Financial Limited; Digital Asset Holdings; Eric Industries; IBM Corporation; Linux Foundation; Post-Trade Distributed Ledger; R3; Ripple; and Safello.
Considering the many advantages this technology presents for a wide range of industries, there has been a surge in investments by players to reap these benefits. While critics fear that the market will have to battle against ongoing regulatory uncertainties as well as security issues, there is no doubt that blockchain technology will have a much stronger role to play in financial transactions across several industries.
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