How Can Blockchain Technology Topple The Fintech Market?

Blockchain is transforming everything!
Be it payments transactions or how money is raised in the market, this life-altering technology is reshaping our world.
Gone was the time when terms like blockchain, cryptocurrencies, fintech were only used by experts. Now, everyone is familiar with these technologies and using these to impact our world in a positive way.
With this revolutionizing technology, nothing seems like a long shot anymore. All the loopholes that the internet left have been filled by blockchain technology; the main idea is making the industries limitless and lawful at the same time. With the advancement of technology in almost every sphere of global business, the financial market is also not far behind.
Along with blockchain and cryptocurrencies like Bitcoin, altcoin etc, fintech is also attracting a lot of attention of people nowadays. Being a much-hyped buzzword in the financial market, fintech is gaining popularity for all the right reasons. But the news of blockchain toppling the fintech market has also been heard.
So, in this article, we will cover why fintech needs blockchain and how blockchain is impacting the fintech market.
Why Fintech Needs Blockchain?
Trust is certainly the biggest challenge faced by a fintech company. How to make a secure financial product and how to make people trust them? Fintech companies don’t have enough funds that confine them from developing a high-security system.
However, the majority of people now engages in day-to-day banking activities, crypto trading, investment in the stock market, make online payments and exchange currency online, which needs the utmost security.
This is where blockchain comes into play. It is affordable to develop and offers high security. Since blockchain is a series of immutable blocks, companies can track the complete lifecycle of a financial transaction efficiently. It even lets the companies to create a safe and secure financial products, bringing innovation to the financial sector.

Blockchain is even capable of truly disrupting various industries making the process more secure, democratic, transparent, and efficient.
Now, you must be wondering how blockchain technology can topple the fintech market. Well, read on to find out.  

Faster, Secure Payments Processing

Blockchain has the capability of completely revolutionizing the current system of payments. The technology can make the payments processing more secure and also lowers down its cost.
The finance industry has perhaps the most number of intermediaries. It makes money transfer within a country inefficient and the problem with international money transfer more severe.  
International transactions may take days to complete because of the number of intermediaries involved. The main problems that contribute to these inefficiencies are the time spent transferring money and the security in which it was transferred.

But cross-border payments platforms powered by blockchain makes the payment network less time consuming and more efficient. With blockchain, you can transfer the money globally in just a few clicks. If you use smaller blockchains, the transfer time is more instant.
Further, there are no intermediaries involved, and the fees are minimal. In fact, it is less than any other money transfer alternatives. Money remittances are the most disruptive sector within Finance. These companies surely make a dent in people’s pocket for transferring funds to other countries. If they do not fundamentally change their fee structure, they will soon become obsolete for blockchain-powered alternatives.

Reducing The Effects Of Cyber Fraudulent Cases

Financial markets such as stock exchange, banks, and money transfer services are most vulnerable to fraudulent cases. The reason behind this is the use of a centralized database, which can be exploited to manipulate the whole database and steal important user’s data. Nowadays, Artificial Intelligence has also added to cybersecurity threats. And, once there is any access to a system, hackers can further get a key to yet another security breach, which leads to more security failure and loss.

Once again, blockchain comes as a solution to this problem. Blockchain is a distributed ledger that is difficult to penetrate. The decentralized data is stored in blocks, which further contains a cryptographic hash function. Each block holds a link to the previous block’s hash, thus creating a chain of records that is difficult to falsify.

Simplified Customer Identification Service

Financial institutions spend around $500 million on Know Your Customer (KYC) process. Currently, the customer identification process involves various steps that impact financial institutions’ business.
Blockchain can reduce the cost and effort required in KYC verification through cross-institution client verification.  
It enables the user to verify their identity and KYC themselves through one platform. There are many projects in the market that strive to be permanent digital records of identity. Once a market leader has set itself, there may be an immutable ledger of pre-KYC people that financial institutions can securely obtain data from.
Blockchain technology also supports independent verification. It means an individual/ client verified by one organization can be accessed by other organizations, ensuring that KYC doesn’t need to start over again.
Final Thoughts
With fintech developing, it can easily be predicted that the financial services of the world will surely evolve over the next few years. There are many areas for applying the blockchain technology, but the major ones include smart contracts, digital payments, digital identity, and share trading. Also, now we know how blockchain is driving disruption in the fintech industry. But disruption cannot happen overnight.
Nevertheless, blockchain is in its infancy stage and exploring new possibilities. A lot in this actual technology has yet to be perfected. Many financial groups believe that blockchain can spin new changes in the financial services industry. Despite the risks associated with this technology, it will certainly reshape the whole way that fintech market functions in the global economy.  
Although the fintech market is excited about blockchain, this technology will still take some time to become a mainstream model. As the blockchain technology is still growing, it is critical you research and keep-up with the latest developments to exploit this technology to transform our financial processes entirely. No matter the case, one thing is for sure; blockchain will indeed revolutionize the fintech market.  
Source: Crypto Daily

South American Banks Looking into xRapid to Cover 6 Nations

A couple of banks in South America are allegedly starting to look into the adoption of Ripple’s cross-border payments technology.
Both Scotiabank Chile and Banesco Panama are testing out how they could move capital with Ripple’s xCurrent.
The report states that Banesco Panama is working with regulators to ensure it’s fully compliant and is also looking at the digital asset XRP to shift money across the globe.

“Banesco is aiming to roll out the technology between the banks in its group – covering the Dominican Republic, Panama, Portugal, Puerto Rico, Spain and Venezuela…
Banesco’s proof of concept used the xCurrent network for the funds transfer, seeing use of Ripple’s cryptocurrency XRP as being a step further than it is comfortable with.
Once integrated into the Ripple network, Banesco aims to initially offer blockchain-based transfers only between banks in the group. That’s because Banesco needs to strike a deal on rates and exchange rates bilaterally with each recipient bank.”

International payments are also being tested by Scotiabank Chile.

According to Vice President of the digital bank Daniel Kennedy, Ripple’s payment network “works really well”. The capital of Peru, Lima was brought up by Kennedy as a potential place where customers could send funds however, he admits that more work needs to be done before the bank can fully and properly implement Ripple’s technology.

“As soon as you do that, the process becomes a lot more efficient, a lot more effective. And you can start having almost one account. If you’ve got a small business in Chile with clients in Lima, they can deposit into an account that has the same number and it just gets transferred. But we’re not there yet.”

The San-Francisco based firm has said that around 200 banks and financial institutions have come on-board with the firm’s international payment network xRapid. The CEO of Ripple said last week that the firm is bringing more and more clients on board at a record pace as interest in blockchain-based solutions has been growing ever since Facebook announced its new upcoming stablecoin, Libra last week.
Last week, Garlinghouse said:

“I’m going to send a case of champagne to David Marcus, the guy who runs Libra. The reason is, this week will probably be the best week of signed contracts at Ripple ever. It has been a massive call to action because Facebook kind of came out and said we don’t need Western Union anymore…”

Source: Crypto Daily

Ethereum (ETH) Might Fall To New Yearly Lows In The Months Ahead

Ethereum (ETH) has run into trend line resistance at the top of a large rising wedge. The price has faced a strong rejection at the 161.8% fib retracement level and is now expected to begin its downtrend. If Bitcoin (BTC) ends up falling towards $8,500 we can expect Ethereum (ETH) to break below this rising wedge and fall towards the 61.8% fib retracement level at $168.55. This could be followed by a rally to the upside but the trend line support once broken will then become trend line resistance and the price will have a very hard time rising above it. Now, we have mentioned for a long time in our previous analyses that ETH/USD is likely to fall to a double digit price. However, now we have reason to believe that the price is actually going to fall further and end up forming a new yearly low.
First of all, let us take a look at the daily chart for ETH/USD once more and focus on the RSI. Some professional traders don’t like to lay too much emphasis on the RSI because it is a consequence of the price and they think the price action is more important to watch. However, for most retail traders, it is difficult to gather much insight from the price action so indicators are useful. If we look at the RSI, we can see that the fractal to the right of April 27 is beginning to replicate the fractal to the left of this mark. This means that the price could decline in the same manner that it rose up but doing that it will end up falling below $80 and therefore likely form a new yearly low. This Bitfinex/Tether fueled rally will end in a lot of blood. According to some surveys, the vast majority of cryptocurrency traders do not use control like a stop loss or take profit. So, if the price ends up crashing down, they either panic sell or hold the bags.

If we look at the daily chart for ETH/BTC, we can see that a big move is in the offing. The price will soon run out of room to trade within this descending triangle and will have to breakout. Descending triangles usually break to the downside and that coupled with the bleak outlook of altcoins might lead to ETH/BTC breaking a key support in the months ahead. This will then force Ethereum (ETH) to fall to a new yearly low against Bitcoin (BTC) as well.

Ethereum (ETH) is a promising blockchain project that had a good run from an investment standpoint but it is important not to confuse the tech with the price. The Ethereum (ETH) blockchain has experienced growth even during the bear market and it will continue to even as the price declines in the months ahead. However, it will see a decline in its market dominance as other competitors catch up. While Ethereum (ETH) saw splendid growth in the last bull run and is still up more than 54,519% since its ICO, it is unlikely to continue to grow at a similar pace.
Source: Crypto Daily

BTC, ETH, XRP & LTC – Which Is Doing More For Adoption?

The financial and investment company founded in 1971, Weiss Ratings is something a lot of cryptocurrency enthusiasts use to get some insight on different digital currencies. Whereas not everyone will agree with what Weiss has to say on some currencies, they are well-respected for their ratings.
They base their ratings on objective computer models driven by complex algorithms with large volumes of data, excluding each analyst’s personal opinion from the process.
With this, the entities that are being rated are always treated with complete objectivity and fairness according to Weiss.
There are four things that cryptocurrency ratings are based on:

Technology
Risk
Reward
Adoption

They typically give currencies a ‘grade’ from A to E.
Just for reference, A is excellent, B is good, C is fair, D is weak and E is very weak.
With this all in mind, today we’re going to have a look at some of the biggest cryptocurrencies in the space and have a look at Weiss’ insights on those digital assets in terms of adoption.
Before we start though, it’s worth saying that none of the cryptocurrencies were given an A, as an overall rating. Not even Bitcoin…
Bitcoin
Speaking of Bitcoin, let’s take a look at the leading cryptocurrency first.
The flagship currency was graded with an overall B rating, whereas it was given an A for technology/adoption.
It probably won’t come as a surprise that Bitcoin came in first place with BTC being the original cryptocurrency, most established cryptocurrency and most trusted cryptocurrency.
There are a lot of firms looking into Bitcoin for currency means such as Microsoft, Subway, Virgin Galactic, Lamborghini and Expedia but mainstream adoption hasn’t yet been achieved.
Fiat-based exchanges also play a pretty big role in offering Bitcoin as a purchase option for investors.

Ethereum
Much like in its market cap, Ethereum is in second place on Weiss ratings in terms of its adoption. The Vitalik Buterin co-founded cryptocurrency also had an overall B rating but for adoption means, an A was graded to Ethereum. That being said, the second biggest cryptocurrency has a risk/reward rating of a D+. This is lower than Bitcoins grade of C-. Weiss justify this saying that its algorithms claim Bitcoin is a slightly safer investment than Ethereum when it comes to the risk/reward ratio.
Back to adoption though. Etherum is the first and most preferred dApp (decentralised application) development platform with more than 72,400 people using dApps based on Ethereum.
As reported by Hackernoon:

“Decentralized exchanges (DEX’s) make up more than half of the Ethereum DApp transaction volume with gambling DApps coming in second. Gamers are the most active Ethereum DApp users, making up over 40% of Ethereum’s daily DApp user base.”

Ripple
Ripple’s XRP token comes flying in at third with an A for adoption and D+ for risk and reward. So in a nutshell, these are the same ratings that were given to Ethereum by Weiss.
XRP is as safe an investment as Ethereum according to the rating firm but slightly more risky than Bitcoin. With the digital asset shooting up more than 35,000 percent in 2017, XRP has proven to be very profitable for early investors.

“When it comes to adoption, Ripple $30 million worth of shares in MoneyGram, with the chance to buy another $20 million over the next two years. As part of the deal MoneyGram will use XRP through Ripples xRapid product to transfer money across the globe in seconds and at close to no cost.”

The new MoneyGram partnership deal is just one amongst 200 other banks, startups and payment companies which include the likes of Santander, HSBC and Barclays.
Litecoin
Sitting in fourth place is Litecoin which was given a B+ rating for technology and adoption and a C grade for risk and reward.
Originally being forked from the Bitcoin source code, Litecoin was built to offer faster transactions time and lower transaction costs than even the leading cryptocurrency itself.

“In regards to adoption, Litecoin has partnered with Travala.com, a blockchain based hotel booking platform. As part of the deal, users can reduce their hotel booking costs by 40% if they pay with Litecoin. Seeing as Travala boasts a portfolio of nearly 600,000 properties in hundreds of countries, this partnership could have a considerable impact on Litecoin’s adoption.”

On top of this, Litecoin’s adoption has probably been boosted thanks to its Atomic Swap technology.
Source: Crypto Daily

Is A New Age Of BTC On The Way?

Considering 2018 saw Bitcoin at a loss, the fact that the leading cryptocurrency has just hit five figures has seen a lot of crypto enthusiasts’ jaws hit the floor.
Bitcoin’s new peak – and its highest price point since the last quarter of 2018 – is nothing short of phenomenal. New Google Trends data indicates that the phrase ‘Bitcoin to the Moon’, could be well on its way.
Bitcoin set a new milestone back in May when it hit its highest interest levels on Google since February last year. This was a key point in the market as this was a time when Bitcoin’s year-long decline started.
By June this year, Bitcoin had proven to become more popular than the Kardashians or the President of the US. This surge in popularity could’ve have been what pushed Google to update its algorithm and cause other crypto sites like CCN shut down, even if it was a bit of a premature announcement.

That being said the interest rate for Bitcoin is allegedly rated at 12 out of a hundred. This is a big difference from the rating it had achieved in 2017 when it reached the heights of $20,000. Nearly every economy across the globe had gone into a state of shock and instantly turned their attention to the biggest cryptocurrency.
The loss in price that followed, saw a lot of people leave the industry as the ‘bubble’ had burst. Essentially, Bitcoin’s five minutes of fame were over.
The comments made by Grayscale backs this up as they said:

“Institutional investors comprised the highest percentage of total demand for grayscale products in the first quarter (73%). This was also consistent with their share of inflows over the trailing twelve months (73%). As we have mentioned in previous reports, many institutional investors may view the current drawdown as an attractive entry point to add to their core positions in digital assets.”

Retail investors were what pushed the price up last time. It could be the same investors pushing it up this time too, even though it isn’t on the same scale or speed, the price surges are there.
Source: Crypto Daily