How Blockchain can disrupt the Fintech industry


There are many articles pertaining to such predictions.

For the uninitiated, Blockchain is comparable to an accountant’s general ledger, which are timestamped and annotated, but digitally log the entire life cycle of the transaction and creates a never-ending chain that continues on and on, and can never be edited nor deleted.

Fintech is an acronym for financial technology, used to describe any technology that delivers financial services through software, such as online banking, mobile payment apps or even cryptocurrency.


The most outstanding feature of blockchain is its unbreakable chain of digital ledger. It completely eliminates fraud. Its immutability means a blockchain can log a complete, unchangeable financial record of every transaction, offering huge protection from fraud. If the fraud goes back 100 years to a specific transaction and a specific person, you know who it was. That makes it a very potent competitor to human integrity and honesty, especially in the banking industry.

Another formidable feature is its “trust-less” component. There is no need to worry about reliability or trustworthiness of the other party when doing a transaction. That is where the DeFi (Decentralized Finance)is most useful in such transactions. Transactions that no longer require a 3rd party, effectively putting banks out of business for remittances, import-export, broker trades and many more. In 2020, multinational investment bank and financial service provider, Citigroup, mistakenly made a $900 million payment due to failures in their validation process. A Blockchain-enabled payment will never make such an error.

The most beneficiary of a blockchain is cryptocurrencies. Frankly, the people own the cryptos. No banks, no governments.


So, how can the Blockchain Technology disrupt the Fintech industry?

The most controversial word – Cryptocurrency. It is the most feared commodity or asset or currency or whatever you call it, that Governments are grappling with because it is mostly unregulated. There are more than 4000 cryptocurrencies competing to outdo one another. So far, the top 100 winners are without any banks or country's backing. The most popular being Bitcoin (BTC). Nobody has control on its pre-destined supply, unlike any crypto or fiat currencies like the USD, EURO or RMB. It is also unlike gold, which is a physical commodity that can be valued based on demand.


If the majority of Fintech industry embraces cryptocurrency, it will disrupt every country's economy. This would force each country to create their own Sovereign cryptocurrency before it becomes obsolete. It may also disrupt the banking system as we know of now. Especially, with a new concept known as the Decentralized Finance(DeFi) network.


So, what does Blockchain, Fintech and the Finance/Banking industry has in common?

Money. The common saying of “money makes the world goes round” may no longer be use if Blockchain find its way into mainstream. The technology is so cleverly designed that it may get rid of corruption, money laundering and misuse one day, if Governments implement their Sovereign Cryptocurrency.


Nobody knows for sure what is the future of cryptos. But we are all certain of one thing,

Blockchain will revolutionize the future of transactions.

Fintech must adopt blockchain or be extinct, just like the many cases of technological innovations we have witnessed over the last few decades.