Blockchain technology is the driving force of financial services.
It's the reason why we can get a mortgage without a bank, and why we can send money around the world for less than a penny. It's also why we don't have to go to the bank anymore to deposit or withdraw cash; all it takes is your phone and an app.
But what exactly is blockchain? And how does it work? Let's take a look at some of the most important things you need to know about this game-changing technology:
What Is Blockchain Technology?
Blockchain is an open, distributed ledger that allows transactions between multiple parties without requiring them to trust each other or any third party—and no one can tamper with it!
Blockchain technology can be used in many different ways, but its most common use is in cryptocurrency (i.e., Bitcoin). Cryptocurrencies are decentralized digital currencies that use cryptography techniques to prevent double spending. They're not controlled by any one entity like a bank or government; instead they're managed by everyone who uses them together as part of a blockchain network across many computers worldwide (called nodes).
Blockchain technology is the driving force of financial services. According to a report by PwC and Juniper Research, blockchain will save banks $11 billion annually by 2022.
For those who don't know what blockchain is, it's a distributed database system that allows users to interact with one another directly without an intermediary. It also ensures that transactions are secure, transparent, and permanent.
Banks can use this technology to streamline their processes, reduce costs, and increase efficiency. For example:
1) Banks can use smart contracts (programs that automatically execute when a certain condition is met) to automate tasks like securities trading and clearing.
2) Ethereum gives clients access to a decentralized platform where they can run applications on its network without having to go through centralized servers or third parties like Amazon Web Services (AWS) or Microsoft Azure.
3) Banks can use blockchain technology to store customer data securely and keep records of transactions—allowing them to provide better customer service while also reducing overhead costs associated with managing this information manually.