Blockchain Basics: The Next Fintech Revolution

The Future of Blockchain

The current financial system is built on trust in intermediaries, which is problematic as many people do not trust their banks and 2.8 billion adults are underbanked. The system involves multiple banks and takes up to three days and costs around $20 to send money from one country to another. This is because the banks do not know each other, so intermediary banks are needed to facilitate the transaction. However, this creates a single point of failure if one of the intermediary banks goes out of business.

A new technology has been developed since 2009 that can potentially solve these problems. It is a decentralized system where all participants are connected to each other and transactions can be made peer-to-peer. This eliminates the need for intermediary banks and reduces transaction time and cost. Additionally, if one participant goes out of business, the other participants can still take care of the transaction: Blockchain.

Blockchain technology has the potential to drastically change the financial system and make it more accessible and efficient for everyone. This would improve the trust in the system which is of utmost importance for blockchain to work in this scenario and how blockchain technology can improve or even completely solve the problem.

Works Cited

“Blockchain - The Engine of the Next Financial Revolution.” Youtube, uploaded by TEDx Talks, 15 Dec 2021, Accessed 14 Feb 2024, youtu.be/GqWc-6ibbio?si=oyX4-RFEkapN6XHj.