Explore how blockchain integration is transforming next-gen fintech apps, enhancing security, transparency, and efficiency.
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Blockchain is a name that is well known if the world of fintech.
In fact, this isn’t just a trend. Over the years with its many applications and amazing performance, it has become a mega trend that has been changing the world.
Now, how can fintech startups and companies take advantage of this super secure technology?
Well, that’s what we are going to discuss in this blog today.
One of the greatest pain points in fintech is “security”. And that’s where this super secure technology comes in.
With this being said, let’s move forward and discuss how you can integrate and secure your platform.
Let’s get right into it:
To learn how to use it in fintech, you must first understand what blockchain technology is at its core.
“Blockchain” is simplest of words, it is a decentralized digital ledger system. With emphasis on decentralization here.
For those who don’t understand it, this means, the technology is not governed by any central authority what so ever.
And this is what makes it so secure to begin with.
In addition to this, what makes it amazing for fintech app development services, is – once a data set is stored to the ledger, it can’t be changed or tempered with EVER.
The reason why it’s called blockchain is, there is a chain made up of block, hence blockchain.
Now that you understand the meaning of blockchain let’s move to the next section of the blog.
Let’s talk about the main thing about how integrating blockchain technology into fintech mobile apps works.
But the main doubt point is, is it possible.
The short answer is, yes, it’s very much possible to integrate blockchain technology into fintech in various ways.
As to how it’s done, we shall answer that question in the next section.
The process of developing an app is a long process and also very resource consuming, from research to summoning app maintenance services.
But where does blockchain integration fall in this process? Alright, let us help you with that:
Now, it’s just a part of the tech stack. There are various ways to integrate it with your platform. Let us discuss what these different ways are.
These are, as mentioned below:
Blockchain Powered Payment Gateway Integration
Let’s start with the most basic form of integration mostly seen in fintech apps of all sorts, the payment gateway.
As the name suggests, payment gateway is a technology that allows a platform to accept and send payments, digitally.
Due to its sensitive nature and the amount of data involved, this is often the target of attacks.
Given the de-centralized nature of the technology, direct transactions do not require a middle man, which is often the bank. This makes everything faster and more secure since there are fewer parties involved.
In addition to security, it is that much more secure there are also other benefits for instance, cost saving.
This one is much cheaper than the regular payment gateway integration that you might be working with. That’s one of the reasons to go for it. One of the most common methods of leveraging blockchain integration on your platform.
KYC stands for KNOW YOUR CUSTOMER.
This is one of the most common fintech technologies that are being used across the world. In fact, if you have ever applied for any fintech service or in simpler words, let’s say an online loan, you must have heard of this or even been part of the same.
Now, it is crucial for fintech companies to know their investments are safe with you.
However, the issue is, it’s a very time and resource consuming process that cost these companies a lot. Something they can save with blockchain integration.
Here’s how it works:
With blockchain technology integrated into your fintech platform, you can streamline the process via self-soverign identities or what we can digital ID verification systems.
This ID data is stored securely on the blockchain and can be regarded a trustable resource.
Simple right?
It goes without saying that in the world of tech, fraud is one of the biggest issues.
The industry as a whole loses billions of dollars to cybercrime and other forms of fraud each year, it shows.
Now, nothing is 100% secure, but blockchain is the closest you get to it.
To answer how, we have to recall the simplest definition of the blockchain.” The data stored in blockchain cannot be changed or deleted”.
This is what makes it highlight secure.
Linking every single block to a digital signature which is – ofcourse- unique in nature, makes it super secure. And club it with timestamps, you have the security you yearned for.
How amazing is that.
This doesn’t only save money, but makes fraud prevention that much more secure. That’s what makes blockchain integration a trend in fintech.
If you have heard of blockchain and fintech, there are high chances that you have also heard of “smart contracts.”
This is one of the most popular and common applications of blockchain in our era.
Let’s see how it works: Smart contracts are self-executing contacts with TC written into the code itself.
This automation reduces paperwork, streamlines loan processing, and eliminates the need for intermediaries, reducing costs and potential errors.
Moreover, the transparency of blockchain ensures that all parties involved can view the progress of the loan in real-time.
These are the methods on how you can integrate blockchain technology into fintech app development platform. With that said, we have come to the end of the blog and concluded
Blockchain integration into fintech platforms revolutionizes traditional processes by reducing costs, enhancing security, and providing seamless cross-border operations. From payment gateways to digital identity verification and fraud prevention, blockchain offers scalable solutions that improve efficiency and transparency. With this being said, we are done with the blog. For more information on the same, it’s highly recommended that you consult a fintech app development company who can give you more details on the same.
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