Blockchain is changing the operations of financial institutions
A stable economy will require that transactions are carried out constantly between business men and consumers, between companies and retailers and these transactions require that there is a form of established trust between the two parties, these parties who may have not seen each other before begin to see it as a necessity to transact and as such there are established boundaries that make transactions easy even between strangers. These established authorities are often regarded as financial institutions, they are the ones who make transactions very convenient and business operations very easy even between the strangest of all humans.
Problems with existing financial institutions.
These financial institutions who are supposed to be great intermediaries between business partners and companies have failed in meeting the needs of everyone as a result of the following reasons. These financial institution is not usable by everyone, there are still people who do not have a bank account because they do not have sufficient money to run required business transactions, opening a bank account means that you need to have some money to have one and there are people in this world currently who cannot afford one because they basically feed from hand to mouth.
The financial institutions operates on a centralized system and this means that at any time banking operations can be easily hacked.
Transactions are usually very slow, it usually takes several days before funds get delivered successfully to people’s account, it is not an easy process at all some people have their business funds delayed for several days before it finally gets to the designated account.
Blockchain provides a better solution.
To provide a solution to this continuous problem, a smart man invented the idea of a digitalized currency, the digitalized currency does not require any huge financial institution to serve as an intermediary between people, and it rather builds a system of trust through several chains of connected computers that are safe and secure.
Chains of blocks are closely related which means if a certain block is to be hacked, the hacker will have to be able to break through the chains of several other blocks and this differentiates the system of blockchain from other financial institutions.
The blockchain system is a very transparent one that do not have hidden charges like what we have in various financial institutions today, most financial institutions have hidden charges where they rip off customers but a blockchain offers a completely transparent system and everyone can check out the complete details of transactions.