How Blockchain is Innovating the Finance Industry
Digital transactions are becoming part of every aspect of daily life. Smartphones are included into decisions about attire. From entertainment centers to automobiles and the work environment, most things occur on, or originate over, a digital medium. It is this type of environment that is occurring alongside the rapid transformation of the global financial system.
A Solution for the Times
Is this year’s 16% fall (since January) in the Hong Kong stock market just a downswing? Consider recent headlines about the largest cryptocurrency mining company in the world, Bitmain Technologies. The Wall Street Journal reported on their IPO interests in Hong Kong. This may be a sign of cryptocurrencies becoming a viable financial alternative during a failing global economic climate.
After all, blockchain technology was born out of the financial crisis of 2008. It conceivably holds the key to bridging the gap between old world finances and the digital age. Cryptocurrencies are not bound by the national borders that banks and governments must contend with. Hopefully, it won’t take a complete market collapse to realize that cryptocurrencies offer benefits in terms of a common ground from which the financial markets can operate unimpeded.
Blockchain Technology and the Future of Finance
Now consider social media and online retailers. Facebook accounts are global but concentrated in the United States. Other social media giants are regionally centered or isolated behind national barriers. There are a growing number of blockchains tailored for social media. As far as online retail giants like Amazon and Alibaba, both are turning to their own blockchain solutions. Putting these types of applications on blockchains may diminish national barriers, but they may also promote private ones.
Whether an Amazon/Alibaba blockchain has a global reach may not make much of an impact to digital finance if private barriers arise. Industry giants like these are sometimes likened to the monopolies that staunch the growth of business enterprise. The early days of Apple and Windows, as well as, Apple and Android, illustrate how technological advancements can bring about barriers. Distributed and decentralized blockchains, like Bitcoin, offer an unbiased neutral ground. This is essential for the future of digital finance to remain a burgeoning global system.
Cryptocurrencies are becoming more Prevalent in Business
Several companies are filing blockchain patents. Notice that three of the top spots are held by Fintech giants. Here are the ranking by iPR Daily in order of their blockchain-related patent applications:
- Alibaba – 90
- IBM – 89
- Mastercard – 80
- Bank of America – 53
- People’s Bank of China – 44
According to Cointelegraph, since 2017, the overall patent filings by country amounts to 225 from China and 91 from America.
Why Mining Cryptocurrencies is Important
Cryptocurrency news makes fewer mainstream headlines of late. Stable Bitcoin prices are part of the reason. Still, there is much growth in crypto mining companies and private companies developing their own blockchain technology. Miners ensure the validity of blockchains. They protect against malicious users by preventing them from forging transactions. It is a decentralized alternative to the centralized transactions of banks that are checked by people and software.
Among the most common blockchain protocols are Proof of Work. This is what Bitcoin uses and is considered the most secure. The original blockchain is a decentralized, transparent, and immutable means for exchanging value. It achieves its ends through the immense computational power expended by mining rigs to validate transactions.
Innovating Digital Transactions
Nando Caporicci recognized the importance of cryptography for digital transactions. He is part of the community which is pioneering the new fintech validation mechanism that enables cryptocurrencies to trade globally. Nando’s business dealings focus on building customer relationships in the computer industry. From there, Nando went on to build mining rigs for Bitcoin. People like him are still needed if the modernization of global finance is to succeed on a systematic digital platform.
About Nando Caporicci
In addition to his experience in building Bitcoin mining rigs, Nando Caporicci used his B.S. in Political Science and Masters in Business Administration to contribute to Chalice, online advertising, and virus removal. He is a family man with two children. For recent news about him, visit his Crunchbase page. Also, connect with Nando on twitter and Facebook.