In the old days, the Internet was a platform where things were mostly non-material, at least in theory. We could send or receive e-mail, reply, post in several forums or read different articles. Today, we connect our most valuable assets in an encrypted way to networks that cannot be silenced and intervened and blockchain networks.
In the coming years, blockchain technology will radically change many things, from the way we do business, to our habits of managing our assets, from our habits of using our machines and tools, and how we can vote securely. It is even included in this change in our ways of proving our identity information about who we are. In this transformation, there will be sectors and institutions such as hospitals and governments that will completely differentiate from their current state and working methods, as well as many institutions and business lines based on brokerage, such as insurance and banking.
What can blockchain do and what can it mean to you?
Blockchain and finance
Cryptocurrencies or digital currencies are the currencies that can be transferred over an electronic network with the simplest expression. There are many methods for money transfer today. You can write a check, place a payment order, use a credit card or make a transfer. Or you can use any of the thousands of cryptocurrencies such as ethereum, litecoin, dash, or bitcoin that almost everyone hears.
Naturally, the more money we transfer, the more we want to keep it safe. In the traditional financial system, an intermediary institution, such as a bank, undertakes this security service for us. The people living on the island of Yap had a different solution; The information such as who got what, how much debt and how much he would get, was kept in the memory of the people living on the island. A kind of distributed registry. Blockchain, on the other hand, realizes this idea by keeping a copy of this registry on a digital network and on all computers connected to the network and by confirming every transfer made by each computer on the network. Banks’ logs are in their own hands, regulate themselves, and we believe and trust that they do not make mistakes or fraud. We pay a fee for this trust.
How is it working?
Before each transfer is approved and joined by the network, it joins a set of transfers digitally known as “blocks”. The transfer must be approved before it can join the network. Network it in; If money is really there, the sender and the recipient look for real questions.
Blocks are formed automatically in a certain time. Transfers made during that time belong to that block. For example, this time is 10 minutes for bitcoin. The 10-minute period is almost unchanged, all transfers made within that 10-minute period enter that block. The network prepares a mathematical question that will take 10 minutes to solve in order to keep this time constant. The difficulty level of this problem varies according to the computing power in the network so that the 10-minute duration never changes. Here, the “miner”, who first found this mathematical question and published his proof, becomes the owner of brand new crypto coins. Of course, other computers on the network verify and confirm the proof before receiving the award. After this confirmation, the block is connected to the previous blocks and added to the chain formed. This technology can prevent frauds and theft and allow money to be transferred very quickly regardless of time or place.
Our traditional financial systems are bulky and tend to make mistakes mostly. Stock brokers and brokers exist to resolve disputes arising from these errors and earn tons of money from this business. This situation costs time and money for people. Blockchain offers a more transparent, cheap and reliable alternative. Nowadays, an increasing number of financial institutions have started to offer smart bonds that pay the holders or smart contracts that can also be executed between individuals and institutions thanks to blockchain technology.
Blockchain application examples in finance:
Asset Management: Business Transactions and Reconciliation
In asset management, traditional trading processes, and especially when cross-border transactions are involved, the situation becomes more complex and increases in cost and risk. Each brokerage and settlement manager institution involved in the transaction maintains its own registry, which creates serious inefficiency and is open to errors. Blockchain technology completely eliminates the need for intermediaries by keeping this registry open and flawless.
Insurance: Processing Requests
The processing of demands in the insurance industry is frustrating and tedious. Insurance workers have to face and differentiate many things from false claims, erroneous data to policies that must be abandoned. The probability of error is very high. Blockchain technology enables the management of these processes with the least risk.
Payments: Cross-Border Payments
Today’s global funds transfer systems are error-prone and costly. It is best that the money you send reaches the other end of the world, and it may take weeks as well as days. Blockchain has already created companies like Abra and Align Commerce, which provide end-to-end encrypted instant money transfer services.
Every asset, from cars and real estate to company shares, patents and copyrights, can have intelligent technologies in itself. Blockchain technology protects the assets of those assets and those authorized to use or view them, as well as protect them. With smart contracts, the properties can be rented much more safely, and their usable rights can be transferred. A property added to the blockchain can only be accessed by authorized people, thanks to a smart key assigned to it. The need for an intermediary institution to sell or rent smart property is completely eliminated.
Smart Contracts and dApps
Smart contracts services are essential to building dApps. A Smart Contract is a distributed code set, stored on a blockchain network. Its usage needs no middlemen or a single designated server. The code is executed dynamically, when triggered by pre-programmed events. Our developers team codes Smart Contracts using the Ethereum networks.
DApps or Decentralized applications, are the next advancement of the Smart Contract. DApps combine a number of correlated Smart Contracts, united by programmed logic working with a Blockchain network. From backend to front-end development, we can assist you on a wide range of dApp projects.
As blockchain usage continues to gain adoption we are excited to help our clients expand into the space. From full development to consulting, we are happy to discuss any project.
Let’s talk about your dApps – contact us!
Enkronos Marketing Team