Benefits of Blockchain-based applications for banking and the role of Blockchain patents
We are aware of the tremendous advantages of Blockchain technologies, are we not? However, the context of the Blockchain is wider than we already encountered. Apart from the transaction speed and secured outcomes, it unlocks a pool of efficient tools for the field of Banking. Now to patent such a marvellous technology in the digital era, one must possess the knowledge of the Blockchain patents and their rightful procedure.
In this blog, we would address Blockchain Software Development process and the most important questions one by one for an informational insight into the fintech industry and its products!
Blockchain and Banking
Initially, acknowledging the correlation between Blockchain and Banking is an integral step, to begin with, its case representation. What tools and peculiarities of Blockchain technology reshape the face of banking industries? Blockchain, an open-source and distributed ledger technology, stands firm by eliminating the intermediary system. These features impart reduced transaction costs and faster than ever banking transactions over the world. Despite its no middlemen protocol, the Fintech products are secure and transparent for its users to consider the revolutionary shift.
A sneak peek at some of the pragmatic solutions of Blockchain in Banking
Adopting Blockchain technology for banking services is just around the corner.
Banks can upgrade their service speed with decentralized technology imparting faster payments yet secured transactions with lower processing fees. As the tedious verification of the users is adopted and accelerated by digital tools, the services could be highly facilitated for smoother execution.
Blockchain?s newly added protocols such as SWIFT could provide instantaneous settlement of the international payments.
Because Blockchain technology eliminates the third party interference entirely, the trading costs across platforms are markedly reduced and the investors could from $17 to $24 million every year. Moreover, some notable countries like Germany and Ukraine are adopting banking-related services over Blockchain technology.
Several options are now available for the entrepreneurs to put their game into action like Initial Exchange Offerings (IEOs), Equity Token Offerings (ETO), and Security Token Offerings (STO). Switzerland and Malta accept STOs because of their legalized protection.
The paperwork hindrance is eliminated with the introduction of the Blockchain in banking services. Many international trading activities like invoices, credit letters and bills are dependent on the paperwork. However, with Blockchain-based banking applications, the streamlining of the transactions and the copies of the data are maintained on the distributed ledger technology.
Gateway to digital identification
We are aware of the routine identity verification while trading online. The traditional approach to this verification is quite tiresome for the customers. Because of this many countries are adopting Zero Knowledge Proof ZKP as their identity innovation factor. Although Blockchain technology simplifies this troublesome process like no other by introducing a one-time digital registered identity. This allows users to share their profiles with others swiftly with accelerated security.
Account and audits
Here the Blockchain smart contracts could come to play. The tedious bookkeeping systems of the audits and accounting could be eased by Blockchain-enabled smart contract inclusion for a single accounting feature. All the records are stored over the distributed ledger system with transparent surveillance.
Known as hedge funds, safer investment options are on a hike at present. Hedge funds ensure investment returns and minimize the risk of doubling the trading of cryptocurrencies in the last consecutive years. A decentralized hedge fund enables investors to collect more investors and strategies and potentiates their investment returns.
The peer-to-peer options available at present are limited by technical boundaries and procedural dilemmas. The transfer could be limited to the geographical regions with a high intermediary rate. But these issues could be well tackled by the Blockchain-based applications that enable efficient functioning of the transaction across the globe.
Blockchain patents- Explained
Blockchain technology establishes a trustworthy relationship among its users. And hence to maintain its integrity, a Blockchain patent should be put into action. The base of Blockchain technologies relies on security, privacy, scalability, and flexibility. These pivotal features make the technology unique and hold worldwide acceptance.
The impeccable Blockchain technology eliminates the third party and embraces the distributed ledger technology for the encryption of the data transferred among investors. Moreover, the elimination of the middlemen imparts lesser transaction costs and efficient transaction delivery. As Blockchain technology drives its fans over the world, the Chinese government encourages the leading Blockchain based industries to register their novice technology under a patent scheme to make the process more reliable and trustworthy. A few of the noteworthy Blockchain patents are Alibaba, Tencent, Xiaomi, SinoChain, Bubi Technologies, IBM Intel and many more.
The first ever Blockchain Patent: Its future
At a time when the industrial sector has accepted blockchain technology as an efficient tool, more and more Blockchain platforms are being introduced into the market. The country that first introduced the Blockchain patent, China, facilitates methods to authenticate the banking procedure encircled in Blockchain technology. As per the regulating bodies, ICBC- Industrial and Commercial bank of China and SIPO- China?s State Intellectual property, users can avail of an increased working efficiency banking system and eliminate the filing of repetitive Blockchain platforms through blockchain patents. The first Blockchain patent came into force in November 2017 explaining the procedure and minimizing the procedure of banking for consumers.
Fact check on Blockchain Patency
- Did you know that there are approximately 500 patents for the Blockchain across the world?
- Among the number of Blockchain patents filed, most of them belong to the banking and financial industry.
- The patent applications over the world are rapidly escalating since their first implementation in 2012.
- As per the reports of IBM, nearly half of the patents are declared pertaining to the field of AI, cloud computing, cybersecurity, Blockchain, and quantum computing.
- Blockchain patent provider companies witness a surge in the filing of the patents following the footsteps of JPMorgan, Mastercard, and Bank of America.
Hence, the patency of the Blockchain application is a crucial consideration for businessmen and investors to refrain from the inevitable legal battle. Especially when it comes to the banking and fintech industry, the patented Blockchain applications are a win-win asset for the investors in the long run.
In order to hit the Blockchain application development target without fail, you should consult a Blockchain consultant company. Webllisto Technologies is the ideal Blockchain Development Company imparting development solutions along with precise consultation. Our industry-specific solutions are structured by the industry’s respective team of Blockchain developers. The banking and fintech industry is rapidly accepting the revolution of the digital era with Blockchain technology as its backbone.