The disruptions of the blockchain are ready to transform the rules of our society. Technology threatens the most powerful institutions of our generation – the Governments and the Banks.

The most powerful impact of the blockchain is the distribution of power from the centralized organizations (which are corrupt, manipulative, greedy, and suppressing at times) towards the decentralized and distributed society (thus giving control to the hands of the commoner and eliminating the trusted third party).

What is blockchain?

All the merits of the blockchain and its applications have driven the world towards it, and organizations are adopting blockchain at a steady rate.

According to Stanford Centre for Social Innovation and non-profit foundation RippleWorks, which analyzed 193 social impact organizations using blockchain, the surge in blockchain adoption increased in 2013. The financial inclusion initiatives were the second biggest use-case of the blockchain in 2013.

The tamper-proof technology of blockchain has the potential to drive down transaction costs and timelines while increasing transparency, speed, and security. All these qualities have driven institutions to examine various use-cases of the blockchain. Now let us see how blockchain can tackle real-life problems and give us the best financial support.

(1) Empowering the unbanked

According to the data released by the World Bank, about a 1.7billion people still don’t have access to Banking services.

Most of these people reside in politically unstable countries, and widespread corruption has curbed the desire for large institutions to enter the market. The financial grant levied to the country for economic development is gobbled by corrupt governments; this restricts the ability of people to develop economically.

The idea of creating a blockchain-based access point for these unbanked populations would be much easier and more efficient than attempting to extend the current cumbersome banking system into these troubled regions.

5 Ways Blockchain Is Changing The World Of Finance Each day, the global financial system serves billions of people by moving trillions of dollars. However, the financial system is faced with numerous problems such as…read more https://t.co/jHrU8LGMwM

— Ibi Dizon (@ibixoxo) June 2, 2022

(2) Enabling faster and more efficient global payments

Our world economy is dominated by the dollar-focused central banking system, which makes it very difficult for countries with less influential fiat currency to become essential players in the world economy.

The current financial system does not benefit small businesses and individuals offering services and products internationally. During currency conversion, the company loses significant buying power if its money is not of equal value to the other parties involved.

In this case, the blockchain can act as a savior as the decentralized economy would not be owned by any country or affiliated with any organization or region. All of this makes blockchain platforms a favorable financial ecosystem.

Also, read – Understand blockchain bridges for crypto benefits

(3) Settlements in the stock market made quick

According to the World Federation of Exchanges database, the total value of stocks traded globally is around USD 77.5 Trillion, and the market is evolving daily, becoming more complex and mammoth.

The blockchain makes trading in the stock market more democratic with reduced transaction time & operational costs, allowing immediate settlements and automating compliance through smart contracts, with greater security and transparency.

Many financial stock exchanges are exploring the potential of blockchain to rejuvenate their stock markets, for instance –  the Tokyo Stock Exchange, London Stock Exchange, South Korea Stock Exchange, the National Stock Exchange of India, etc.

(4) Business payments become easy, also Increased Accuracy in Asset Management

The blockchain is a peer-to-peer technology that gives businesses a more efficient solution than the lackluster systems in place. The technology empowers them to establish themselves in the global market, irrespective of location.

The asset management industry is increasing; it is expected to grow to USD 145.4 Trillion by 2025. The distributed ledger technology enables direct trading and settlements across boundaries, reducing costs, improving data accuracy, and reducing delays. The current system is cumbersome and time-consuming as the industry uses a lot of intermediaries.

The applications of blockchain technology haven’t been limited to this; the blockchain has simplified several other sectors like the management of supply chains and insurance.

The blockchain is an inevitable choice to solve the world’s current financial system woes as it enables equal access on the global scale, a corruption-free platform for trade, and the regulation of institutions like government and banks exercising excessive power in our society.