While there are still hurdles to overcome before blockchain completely transforms finance and banking, the potential cost and labor savings it could create for the global financial market are so appealing that many major institutions are investing millions in resources to research how best to implement it. Essentially a ‘distributed, digital ledger’, organizations have found that the blockchain allows them to become more democratic, decentralized, efficient, and secure. Avalon Life, a leading global crypto community, discusses the wide-reaching implications of the technological advancement, and how it will upend the financial services industry for the better.
To help gain a better understanding of the recent technology, Avalon Life explained that the blockchain is similar to a traditional database — one kept in a specific location and accessible by a small number of users — but everyone within the community can see when a transaction occurs. The records are stored on tens of thousands of computers, including both home and business servers, providing an unparalleled level of transparency. The immense visibility generates trust and honesty among participants, who use virtual currencies to transfer ownership of soft products including photographs, songs and other files in a peer-to-peer network. Members will have an account to store their cryptocurrency, similar to one at a bank, but protected with a complex, secret code to give the individual owner control over only their own transactions.
In the financial world, banks traditionally act as central intermediaries for financial exchanges. They store funds, track transactions and offer additional services including credit cards, loan consolidation and credit monitoring. By undermining the entire concept of a community needing a central authority to control funds, blockchain is beginning to eliminate the need for a middleman in the form of brick and mortar banks. Users can complete exchanges immediately and trust that it is secure because of increased transparency and advanced encryptions. In the near future, expect traditional financial institutions to adjust their current services to meet the new needs of customers using blockchain. This can already be seen in The World Bank, who recently appointed economist Rosanna Chan to lead a team of 60 employees in researching global blockchain solutions. As of April 2017, 75 banks around the world had signed with a blockchain service community. As society begins the process of disintermediation, as the need for a central authority is decreasing, banks will need to provide more services to compete within the current financial industry.
Avalon Life is a novel, dynamic company with fresh ideas and innovation based on blockchain technology and decentralization. Driven by the goal to achieve financial independence for all people, they offer state of the art blockchain technology solutions and global education programs on cryptocurrencies and the shifting financial landscape. With over 168,000 members, Avalon Life’s crypto community is one of the most robust, fastest growing blockchain programs in the world.