Blockchain technology has been playing a major role in optimizing numerous markets, business sectors, and processes across industries. When we talk about the finance sector, hackers these days are utilizing the latest technology to breach into the secured systems of banks and financial institutions.
Thus, the need for high security is at an all-time high. Blockchain has the potential to provide a high level of security that would be difficult to hack and breach into.
In this blog, we will talk about Blockchain and understand how this technology is reshaping the finance mobile app development. So, without any more delay, let’s get started.
What is Blockchain?
Blockchain is the decentralized ledger technology that saves information and distributes it across several computer systems. When a new transaction happens on the blockchain, it gets added to the ledger of each participant.
The decentralized database that numerous participants administer is called Distributed Ledger Technology (DLT). When new information is added in the chain, it gets visible to all the users in the chain and all of them can equally take part in the verification process of that information, thus enhancing its integrity and security.
How Blockchain is Reshaping the Finance Mobile App Development
In this section, we will discuss the different ways in which Blockchain is reshaping the Finance mobile app development.
1. Easy Transactions
First of all, Blockchain in finance mobile apps can allow users to make transactions easily and seamlessly. Earlier, people have to wait for hours, or even days to make international payments, but with blockchain technology, it can be done in just a few seconds.
Blockchain has eliminated the need for an intermediary, therefore, transactions can be done directly to the other parties, saving costs as well as time.
2. Reduction in Frauds
Blockchain is a distributed ledger that stores data in different nodes connected through a chain. Every user has a copy of these data, and whenever any edits are made to these data, all the users get to know about it.
Therefore, it has become nearly impossible to tamper with or misuse the data. Banks and other financial institutions can hire Blockchain developers in India to integrate this technology into their mobile apps to decrease the chances of fraud.
3. Seamless KYC Process
Know Your Customer (KYC) is very important nowadays for finance mobile apps to reduce online fraud. Sometimes, the KYC process might take a lot of time, which not only increases the cost of the parent institution but also may irritate the users.
With the progression in blockchain technology, the requirement for KYC procedures will be eliminated.
If the KYC details of a client will be stored on the blockchain, then it can be accessed anytime later in the future by anyone who has permission to access it. With this, the client does not need to go through the KYC process again and again.
4. Reduces the Dependency on Cash
This is the era of digitization, and the concept of digitization always focused on encouraging digital payments.
Blockchain-based currencies can be issued by banks to make transactions through their finance mobile apps. This will reduce the dependency on physical currency such as notes and coins.
Moreover, Blockchain-based payment methods are more safe and fast as compared to physical payments.
Blockchain in finance mobile apps can be used to draft smart contracts between the two parties. As per the top mobile app development company, these smart contracts can be used during the exchange of shares, transactional activities, buying and selling of bonds, etc.
Users do not have to worry about tampering with these smart contracts. As compared to traditional contracts in finance mobile apps, these blockchain-based smart contracts are much safe and secure.
6. More Security
Blockchain is the best solution for providing a high level of security in finance mobile apps. As Blockchain is nearly impossible to hack, the data of these apps such as user details, transaction history, and important documents, all are secured.
This increases the trust of the users and they will tend to use Blockchain-based finance mobile apps more, as well as recommend their friends and family, which eventually helps the app become a success.
Finance mobile apps are very vulnerable to cyber-attacks and hacking threats. The existing security systems of banks and financial institutions provide security only up to a certain level. But, if hackers somehow managed to breach these security systems, then the data of the users will be at stake.
Thus, banks or financial institutions should understand the benefits of blockchain technology and with the help of a Fintech app development company, they must implement it in their security systems and finance mobile apps to provide an extra layer of security.