Data suggests that global spending on blockchain will rise to $19 billion by 2024. This is up from 4.5 billion in 2020.
Remarkable, isn’t it?
One of the sectors greatly benefiting from blockchain technology is FinTech. This article covers four key ways blockchain is revolutionizing the FinTech industry.
Blockchain is an immutable ledger that records transactions digitally—this is one of its most distinguishing features. Each time a transaction takes place, miners compete to verify and validate it by solving complex mathematical puzzles.
Upon finishing the transaction, they add it to the public ledger in data blocks. Here, it will be in everyone’s view.
So, how does this affect FinTech companies? It brings about transparency in the marketplace, thus reducing the potential for fraud. Additionally, smart contracts layered on top of a blockchain can facilitate and verify the negotiation or performance of a transaction. As such, many financial institutions are incorporating blockchain into their daily operations.
Blockchain technology also facilitates sending of transparent payments between businesses in real-time. Such a step is huge for the sector because legacy payment systems are often slow. One such transaction can take up to five days to clear.
For consumers, blockchain technology in FinTech improves their payment experience and enables secure peer-to-peer transactions in real-time with minimal transaction fees.
Matching Blockchain With the Right Talent
For FinTech companies, adopting blockchain technology can translate to growth acceleration. However, other elements will also play a crucial role in this. Key among them is the talent you bring in to actualize your vision.
Without the right people in your team, you won’t be able to capitalize on the tremendous potential blockchain technology offers. Martin Executive Recruiting is a recruitment agency that helps companies find top-notch talent. Get in touch with us today to find the FinTech talent that will help you scale.