When many of us see blockchain for the future of fintech and traditional finance one of the biggest questions that many people raise is the idea of security alongside blockchain technology. The truth of the matter is that blockchain is extremely transparent in the fact that it offers an extremely powerful level of security for users.
Data security is massively improved with blockchain technology because there is an ongoing record that makes transparency in any type of financial trade much easier to have a record of. While many types of transactions today go somewhat unlogged in terms of shopping, political exchanges and even banking, blockchain technology would easily expose any type of breach, scandal or mismanagement. Investors and any type of financial consumer can start to see a true benefit to using block chain technology especially when an ongoing record of all transactions from every user could be logged and easily recorded. Preventing mismanagement and fraud with finances is bound to be a huge concern for anyone that has been the victim of something small like a mischarged credit card all the way down to a person that has had the unfortunate luck to work with an investment company that may have mismanaged their money.
This level of transparency can not only help with security but it can help to make the market much more competitive through blockchain. Because all of the records from one specific investor or person will be available through blockchain technology, it’s possible that any user could follow a specific investment strategy or see where they could potentially invest with someone else to offer a competitive advantage.
As an added benefit to security blockchain offers a decentralized version of data ensuring that every transaction can be logged. There’s no centralized data set that was something that generally occurred with any other type of financial institution. All of the personal and transaction data is recorded into a singular block and then that block is sent out to every other stakeholder computer for full verification. With multiple computers verifying the data recorded as a full authentic set, there are many checks and balances to the level of security that is provided with the exchange of data. This means there is less of a chance of any type of fraudulent exchanges and it also ensures that every block that is added into the block chain can be recorded and verified as soon as it takes place. Through this up-to-the-minute data recording and verification it’s possible that any type of fraudulent information would be tracked very quickly and detected equally as quickly.
A keyless security infrastructure and extensive encryption also works to protect every customer using blockchain style financial products. Data security using this type of encryption is much more secure than other types of alternative technologies which are currently in use by financial institutions.
Ultimately this type of financial technology represents the future of secure transactions and data security not only for finance but for any application where data verification is needed extremely quickly.
