Fintech needs crypto and blockchain to blossom
Fintech needs crypto and blockchain to blossom
For those who don't know, Fintech is short for financial technology, a term that has been thrown around quite a lot in recent times with numerous startups and project developments. It isn't uncommon that many individuals have come to realize the secret of running an institution that takes money from people and acts like it's doing anything relevant - essentially, being a bank.
I've always found it weird that projects will raise millions of dollars to simply replicate
regular bank apps without any distinction in their products and services, and the funny part is how people fall for it, I mean, you're excited about a company with no physical branch, emerging as a centralized institute looking to revolutionize banking? What reason can it do that doesn't already exist?. The same limitations and sometimes more of the banking system are faced by these companies and before you know, along the line, they close their doors as they'd inevitably not attract any significant growth being a copy of a pre-existing system with huge flaws.
We've only managed recently to slip through the cracks of the banking system's cold embrace as cryptocurrency and blockchain technology began to expand its utility. Certainly, this isn't something many would like to acknowledge, but when we talk about "Fintech", crypto and blockchain typically breathes a lot of meaning to that word.
Unending Development Curve
Before blockchain emerged, finance, even with the digital banking system, was quite restrictive. The secret which is no longer a secret is that these flaws weren't exactly subject to technology limitations, but simply a business strategy which has been employed for years. The bank wouldn't be the bank without these restrictions, this is what typically makes this system seem real.
I mean, look at it this way, you wish to send money to your family in foreign place, or perhaps you're the one in the foreign space and want to send a money bank home. Now, you understand the cost of simply flying back when you have unfinished business here, so, you result in finding a system that mitigates that cost right? So you turn to the banks and it doesn't matter what difficulties you have in the process, the bank understands what brought you and that's leverage for them.
They could simply make the process seamless, but what's the fun in that? Plus we all know that making something appear harder that it is simply makes the person who is helping solve it seems extremely relevant, which in this case - the banks.
This applies to so much in life, every system will do anything to remain relevant, the doctors will invent diseases to remain relevant, the armed forces will organize crimes to remain relevant, it's all a game of relevance and is pretty simply what the governments are doing - acting relevant.
So you see, we are really just beginning to see actual innovations of financial technology with blockchain and cryptocurrency developers building flexible applications for savings, spending and investing, all without having control over the actual size of value that flows through the network. Financial technology - Fintech, with decentralized finance(DeFi) and its limitless smart contracts is taking mere borderless transactions that are double spend proof to investment products of wide varieties with lots of room for sustainable and expansive wealth generation.
Posted Using LeoFinance Beta