The financial enterprise increasingly has been telling us there is a Decentralized presence on the Blockchain stage.
Networks drive the Blockchain narrative. They tell its various actors, from secured business networks, shared operating models, more efficient processes, reduced costs, and new products and services in banking and finance. How to links services together and creates better customer services, things that would otherwise seem inexplicable. The six fundamental forces/benefits of Blockchain finance, transparency, instant settlements, audit trail, programmability, trust, and security. The benefit of each of these digital tools; transparency is the outlier impacting finance with authenticity, ownership, and efficiency. Yet, transparency, described by the fintech times “can make it very challenging to implement blockchain processes following the new Data Protection Directive”, blockchains space-and-time warping general theory based on cost reduction, economic benefits, and innovation.
Problem number two banking and lending with their antiquated technologies and slow-paper-based, complex processes, with the observation that payments require and involve many parties and ledgers, high costs, and operational risks. In the centralized finance ecosystem paper and monetary transactions exert slow outdated ancient systems; the simplest banking lending solution to these problems as their components whirl around is blockchains’ second-biggest invention KYC, authenticated documentation, real-time credit prediction, and reduce operational risks.
The third turn of events is to recognize the innovation and number of emerging networks that lay plans addressing the Digital payments value chain.
Wire a centralized payment from the USA to Italy- consists:
Option 1 Centralized system
USA Institution → Federal wire →other USA Bank → Swift relationship wire →
to Netherlands Bank → SEPA payment option → Italian Bank [ fiat dominated USD, EUR]
Digital representation of an asset
Option 2 Blockchain Decentralized system
Smart contract framework → Upload on Blockchain → Tokens → Non fiat dominated [BTC,ETH,DAI]