Blockchain is a fairly new concept in the fintech industry, but it is already has a significant presence. The technological development was created as the backbone of bitcoin, which is also enjoying vast recognition as the leading cryptocurrency today. Despite its financial origins, blockchain has become popular for purposes other than sending or accepting payments. New entrepreneurs are now using blockchain to disrupt things such as e-voting, gaming, gambling, data management, market forecasts, content and media distribution.
The blockchain is becoming a rock star in the technology industry. As new developments are announced, it is clear this innovation could disrupt more than a few industries. Blockchain has already contributed massively to tech even if it remains relatively under the radar.
Giving New Ideas Value
Blockchain allows companies to crowdfund innovative ideas by having an initial token sale (ITS) using their own tokens as a virtual stake for customers. Firms can utilize one of the classics such as Bitcoin, Ethereum, Dash, or Ripple or create their own unique digital coin. Investors will buy the coin with the hope that the underlying service will be strong enough to drive up the demand for it. ITS and this new form of crowdfunding have created incentives to foster business growth, and companies can retain control of their ideas while still finding the capital they need to succeed. Blockchain is quickly entering the conversation as a legitimate avenue for capital raising.
Improving Remote Security
Blockchain has been giving single-server platforms a run for their money as its technology offers a more secure yet decentralized manner to store and share data. Rather than have all the information on one server, blockchain relies on a P2P (peer-to-peer) network. A transaction or a request is turned into a block and joins an existing chain once it is complete. Blockchain uses an open ledger which updates any transaction on the chain instantly across all nodes, so information is hard to crack, manipulate, or delete.
Additionally, blockchain uses an algorithmic system known as cryptographic hashing which verifies the authenticity of data like password or file by producing a checksum. This tool can determine whether two files are the same if their checksums are also identical.
These two characteristics ensure the platform’s safety from single attacks, as the information would be much harder to find. Furthermore, the cryptographic hash function gives clients the control over their identity, replacing services which consider their job done if the password entered matches the one inserted upon registration.
Democratizing the Asset Markets
Before blockchain’s decentralization, asset markets such as stock exchanges were limited by borders, government policies, and centralized control. To buy or sell any asset, stock, or commodity, investors had to leap through several obstacles and deal with much bureaucracy. Even then, their platform was still restricted to a single currency and a few asset classes. Blockchain, however, opened up the floodgates and can allow anyone with cryptocurrencies and access to the internet to trade without being pigeonholed in such a manner.
There are already innovative fintech companies using blockchain to deliver the next generation’s trading infrastructure. Naga Group AG is one of these, and besides being trailblazers in the crypto space, also host a plethora of cutting-edge fintech solutions like their proprietary SwipeStox platform. Currently. Naga services aid hundreds of thousands of traders on a daily basis and support $4 billion in monthly trade volume. Now, the company is looking to bring blockchain into the fold with their seminal cryptocurrency Naga Coin (NGC).
NGC is the next step for the digital asset trading industry, and a perfect fit for Naga’s already well-rounded ecosystem. The company recognizes the equalizing power of cryptocurrency, both to give traders everywhere an inlet into assets of any kind, and for fund managers to get creative with the financial instruments that they build. Naga’s platform will provide users a channel for buying and selling countless assets like stocks, bonds, ETFs, indices, currencies, and even virtual property within a unified ecosystem.
A chief concern for Naga is to build convenience into the provider side as well. Crucial to their expansive blockchain trading environment is Switex, a game developer portal and API that lends devs the ability to digitize, decentralize, and source demand for their in-game property. With Naga Coin, players can participate in new markets surrounding digital armor, weapons, and other property.