What is blockchain?

Blockchain is a shared, immutable ledger that

facilitates the process of recording
transactions and tracking assets in a
business network.
In simple language, Blockchain is a Database,
Blockchain stores data in blocks and converts
this into the shape of a chain.

Why is blockchain important?

Business runs on information. The faster
information is received and the more accurate
it is, the better. Blockchain is ideal for
delivering that information because it
provides immediate, shared, and observable
information that is stored on an immutable
ledger that only permissioned network
members can access.
1. SMART CONTRACTS
Smart contracts are similar to physical contracts,
except the stipulations of the contract are fulfilled
in real-time via the blockchain. Smart contracts are
beneficial, especially to the finance sector, for
numerous reasons. These contracts are fulfilled
instantly after all stipulations are met, do not
require any middlemen, and add heightened
levels of security.
2. SIMPLIFIED PAYEMENT SYSTEM
One of the most attractive applications of
blockchain in fintech is its ability to process
payments almost instantly and in a manner that
protects data integrity.
Credit card giant Mastercard showcases
patented blockchain technology that processes
cryptocurrency payments on traditional credit
card systems. The company realizes that
blockchain-based payments are getting popular.
So Mastercard also aims to cut down on fraud
and risk with a hybrid payment method.
3. ADVANCED TRADING AND INVESTING
Blockchain technology can transform the stock
market by cutting down complicated and time-
consuming processes, high costs, and security
risks.
In a traditional stock market,
An investment can take up to three days to
process because of communication between
intermediaries, causing lag and uncertainty in
the process. Blockchain, featuring smart
contracts and a decentralized process, promises
to bring speed, accuracy, and efficiency to the
investment process.
4. LOYALTY AND REWARD PROGRAMS
It’s no coincidence that well-performing
companies — like Apple, Disney, and Amazon —
have expansive customer loyalty programs and
millions of diehard fans. Businesses looking to
increase revenue and retain customers have
found another solution: blockchain-based loyalty
rewards.
For most companies, current loyalty programs
are hard to keep data on, are outdated, and are
at severe risk of data breaches.
 In a 2018 study, IBM found that 73 percent of
respondents believe businesses value profits
over data security and that 75 percent won’t
even buy a company’s products if they don’t
trust the company to protect their personal
information.
Customer loyalty programs have become a
target of cyber attackers, but the blockchain is a
potential solution for making the programs safer,
larger, and more precise.
5. UPGRADE DIGITAL IDENTITY MANAGEMENT
One of the most serious responsibilities of
financial institutions is maintaining the integrity
of a customer’s digital identity, comprising some
of our most sensitive information. We trust
banks to safeguard our passport information,
biometric scans, social security numbers,
accounts, and addresses with the expectation
that these institutions will keep them private.
But Unfortunately Every year there are many
cases of cyber attacks in which people are
defrauded or some of their personal data is
leaked. Blockchain can stop hackers in their
tracks.
What are the Benefits of Blockchain in
Finance?
The blockchain enables more open, inclusive, and
secure business networks, shared operating models,
more efficient processes, reduced costs, and new
products and services in banking and finance. It
enables digital securities to be issued within shorter
periods of time, at lower unit costs, with greater levels
of customization

1. Effectively Control Risks

2. Security and Transparency

3. Instant Settlements

4. Better Auditing

5. Reduce Costs