Trends in Blockchain and Fintech: a perfect marriage

Why Fintech with Blockchain?

Blockchain is an emerging technology that can radically improve banking and other transaction networks, new opportunities for innovation and growth while reduce costs and risk.

Blockchain technology offers market participants a way of direct access to their dematerialized activities if they do not need to be seen by other participants, as shown in the following image:

in the core repository (the system that is currently being used) most of the participants are disconnected from their activity deposits, the settlement transaction requires the participants to collaborate in a slow, inefficient and costly flow, as can be seen in the following image:

Therefore, a shared repository It will offer all participants that they can interact with the depositary directly without involving third parties, which makes post-trade operations cheaper and faster.

The different applications that our models find in the financial sector and that are best adapted to blockchain technology are:

• Financial instruments: cross-border payments, private equity, derivative products, business registries, expense registries, mortgage and loan registries, and microfinance.
• Process: clearing networks, international transfers, clearing and settlement, audits, reconciliations, reporting, settlement, and asset ownership.

Blockchain for the financial market

Trading, clearing, and settlement functions can be automated on a blockchain network using smart contracts (smart contracts) and oracles, as shown in the following image:

The market we find exchange applications where they can live on the blockchain or outside the blockchain. i.e. tired off-blockchain applications they are often more centralized, but are likely to offer better value for money.

The final clearing/settlement of financial assets can be automated through smart contracts, which provide direct access to the assets defined by the padlock.

And finally, the oracles its off-blockchain services that integrate on-chain contracts with existing systems; network participants do not interact with oracles directly.

Blockchain and fintech ecosystem in financial services

We can find multiple fintechs already on the market that work in different sectors such as smartphone or digital payments, capital markets, banking corporations, analytics and big data, cryptocurrencies and bitcoins, financial platforms, crowdfunding and crowdlending, finance management personal and blockchain technology.

But the adoption of blockchain technology in the financial market started in October 2013.

From which collaboration strategies of traditional entities are formed that can forge alliances and create laboratories, hubs and accelerators to promote innovation, adopt emerging technologies to participate in the fintech ecosystem, through the fintech banking synergy that allows prioritize the strengths and experience of each sectorTherefore, the bank allows fintech models to scale through infrastructure, capital and clients, and fintechs are the innovation and disruption that help the bank offer more value and services.

We can highlight the following banking laboratories:

Examples of Blockchain Fintechs of Payments

The first fintech project that I would like to highlight would be ‘2gether’, a collaborative financial platform, which works with a card where the exchange of cryptocurrencies to currency of the market (euros/US dollars) to make payments through conventional card payment terminals.

Other fintech pages that our platforms will find is ‘Marketpay’, a platform of intelligent pages for digital negotiations, in the same way you can make custody pages, count votes, crowdfunding campaign pages, pages in solutions for Internet of things (IoT)second-hand sales payments and smart payment platform.

Lastly, the wallets which is the software designed to store, send and receive cryptocurrencies. In the wallets we can carry out transactions with digital or virtual currencies and they can be comparable to a bank account. As an example we can name a ‘Coinbase’.

Blockchain example in capital markets

The company that wants to stand out within this point is ‘Symbiont’ where it develops smart contract products and distributed ledgers for use in capital markets.

Provides an interface for specifying the terms and conditions when issuing smart values, as well as the integration with market data. The smart values ​​their self-executing smart contracts. Auto-execution reduces the time and cost of managing and transacting with traditional systems.

Examples of Blockchain in legaltech

The first project I want to highlight is ‘Finboot Tech’ which is a digital platform for signing smart contracts for corporate use. The actual applications that are working:

• Black Labs: certifies the quality of petroleum products and the monitoring of their production as they exchange hands between the different actors in the supply chain.
• SALMA: use the blockchain for the protection of data, returning control of their data to the user and helping companies adapt to new regulations.

On the other hand, we can find the company ‘Chainalysis’ that allows us to track block chain transactions and helps identify and stop those who misuse cryptocurrencies, i.e. illicit activities, fraud, extortion and money laundering.

These are the latest news that the financial market brings us with the union of technology, if you liked it and want to know more about Fintech and BlockChain, we encourage you to watch the Webinar where you will learn everything you need to get started on the subject.

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