BBlockchainhas indeed several advantages and is therefore preferred much for monetary transactions. One must focus on these advantages to appreciate value of blockchains.
What are the advantages of blockchain?
- Efficiencies that result from DLT can also indeed add up to some very serious cost savings.
- DLT systems thus do make it possible for businesses as well as banks to be able to streamline internal operations which help in reducing drastically the expenses, mistakes and even delays that are caused by the traditional methods for the reconciliation of the records.
- The widespread adoption of DLT will indeed bring about enormous cost savings.
- Electronic ledgers will become much cheaper in order to maintain as compared to traditional accounting systems.
- The employee headcount in back offices also do get reduced drastically.
- Nearly fully automated DLT systems do result in far fewer errors and also the elimination of repetitive confirmation steps.
- It helps in minimizing the processing delays which does imply that less capital will be held against the risks of pending transactions.
- In addition, some smaller number of millions will also be saved by shrinking the amount of capital that broker/dealers are required to put up to back unsettled, outstanding trades.
- There is greater transparency as well as ease of auditing .
- Blockchain’s removal of almost all human involvement in processing is in particular beneficial in cross-border trades, which do usually take much longer because of time-zone issues and the fact that all of the parties must also confirm payment processing. Blockchain systems can also set up smart contracts or even payments that have been triggered off when certain conditions are met.
Blockchains are very essential in modern day-to-day transactions. They are becoming quite popular these days