Since the launch of Bitcoin a decade ago, the blockchain has continued to grow in popularity. It has found use cases outside of cryptocurrency. In the fintech industry, technology is making a huge impact. As a result, startups and mainstream companies in the finance world are showing a lot of interest in this technology. The Benefits of Using Blockchain in the Finance World Blockchain technology brings several benefits to the finance world. These benefits include: • Dependability and Trustworthiness While various fintech solutions offer users convenience, the control of fintech platforms still lies with third parties. As a result, if the third party is not competent or professional, all the promised convenience is just a facade. Essentially, every user of a fintech solution has to place their trust in them. However, blockchain is helping to eliminate these issues. You do not need to trust the person behind a solution or even know how they operate. As long as their operation is powered by the blockchain, users are guaranteed it will work. • Increased Speed The current fintech sector is still highly reliant on the . In the traditional financial world, a single transaction can be backed up for days. If just one party does not corporate, the entire operation could be set back by weeks as the issue is investigated. The result is lower user satisfaction. With blockchain technology, even enormous transactions can be confirmed within minutes. legacy financial system • Reduced Operational Cost One of the major costs of any fintech is time. If a platform can reduce the time it takes between transactions, it can boost profits, which will reduce the cost of operating. Blockchain can help fintech startups achieve that. Besides that, using the blockchain eliminates third parties and the processing fees that they charge. The result is that using blockchain technology could help to cut the costs of a fintech platform by 50% or more. The Impact of Blockchain on the Fintech Sector The blockchain has already had a major impact on the fintech world. Here are some of the areas it is bringing change: • P2P Payments In the existing banking system, the payment infrastructure is costly and slow. However, using blockchain technology in the clearing and settlements industry could save the investment-banking world billions of dollars. Various firms in the banking sector are already working on solutions that would be powered by the blockchain. Amongst central banks, there is a serious push towards blockchain and digital currencies. Many of them are considering the launch of wholesale digital currencies that would be powered by the blockchain. A wholesale digital currency would be used for settlement and clearing and it could save an economy billions of dollars. Due to the inefficiencies of the existing payments systems, many soon. central banks could launch a blockchain-powered digital currency • Providing Banking to the Unbanked There are currently over 2 billion globally who do not have bank accounts. In short, they are unbanked. Using the blockchain will help people who are unable to open a bank account to open one. While billions of people do not have a bank account, many of them have smartphones. The blockchain exists purely in digital form and people could open a bank account via their mobile phone that is powered by the blockchain. As a result, the blockchain could help to open up the financial world to more people. • Blockchain and the Trading World In the current setup, the global trading market still relies on a lot of physical paperwork. For instance, if you purchase government bonds, they are usually in a physical form. Besides that, settling a transaction in the trading world is still exceedingly slow and can take up to three days to complete. With the use of the blockchain, every transaction could exist in a purely digital form. Through the process of tokenization, there would be no need for any physical paperwork. Third parties could be eliminated and a transaction could be completed in a matter of minutes. • Credit and Loans In the current system of finance, taking a loan or getting credit is a drawn-out process. You have to provide collateral, your details, and in most cases, you have to sign physical paperwork. By using the blockchain, it will help to speed up the process of acquiring loans from days to just a few hours or minutes. The blockchain offers privacy, protection, and . increases security • Regulatory audit and Compliance The regulatory compliance sector is estimated to be worth around $118 billion globally. Various startups in the blockchain world are coming with regulatory compliance solutions that are powered by blockchain technology. A major benefit of the blockchain is that it creates immutable records of each transaction. Consequently, auditing a company’s operations will be much easier. The immutability of the blockchain also helps to reduce the possibility of erroneous reporting, which ensures the integrity of all records. The Nimbus Fintech Solution One of the companies created to leverage the use of blockchain technology in the fintech sector is . The founder of the company, is a senior risk and financial management, CEO and an entrepreneur who advises heads of states, ministers of finances and CEOs of global corporations, decided to build a bridge between blockchain, cryptocurrencies and traditional finance. The company’s goal is to create a fintech ecosystem that deeply integrated the blockchain into the legacy financial system. Nimbus Andrea Zanon Nimbus platform's team has the simple goal of combining the best advances in the crypto world and the cloud computing industry into a multi-faceted fintech ecosystem. As a result, users will have access to services and tools that allow them to maximize the profitability of their crypto investment. • The Avalon App To achieve the goal of profit maximization, Nimbus platform launched the Avalon App. The app makes profits through arbitrage trading. To make money, users deposit funds in the app and receive rewards daily. The longer they keep funds in the app, the more they earn. • IPO Hub- The Flagship Project of the Nimbus Platform The Nimbus IPO Hub will allow anyone to take part in an IPO even when he or she does not have the high minimum buy-in needed. They can achieve this through the Nimbus Stable Coin (NSC), which is a stable coin. To invest in an IPO, users only need to purchase NSC that they invest via the Nimbus IPO Hub. Nimbus will then take the NSC, exchange them for money, and purchase shares in an IPO. Once they are done, they will share profits with the NSC holders. • The Nimbus Token The Nimbus Token (NMBT) helps to ensure the independence of the ecosystem. It is an ERC-20 token, the capitalization of which is ensured by the total unrealized profit from the company's trading using the Avalon arbitration algorithm. The starting price of token was 0.00005 BTC, at the moment it is 0.00011541 BTC. Nimbus has numerous other products planned that will form the complete ecosystem. They include the Nimbus P2P lending platform, the social trading platform, the Nimbus Coin Tracker, and the Nimbus Crypto Merchant. The goal is to launch an all-inclusive crypto ecosystem for everyone in the crypto world. The Future of the Blockchain in the Finance World Blockchain technology is still quite young. However, it already shows a lot of promise in the fintech. The efficiency and speed that it has to offer will no doubt make a huge impact on the financial world.
