Transfer of money has always been an expensive and slow process. This is particularly true for cross-border payments. Process involves a number of banks and currencies before money is transferred to local account of recipient.
Buying and selling stocks and shares has always involved many middlemen, such as brokers and the stock exchange itself. They cause reduced profits and added liability in event of trade loss.
Fake customer identity causes fraud transactions, especially in Loans, mortgages, insurance which require a higher level of security for the financial institution to comply with Know Your Customer (KYC) regulations.
Loyalty and reward programs are not realizing its full potential due to factors like inactivity of the customer account, low redemption rates, time delays in delivering rewards and points.
Smart contract is a code that is stored, verified and executed on a blockchain system. Smart contracts can be used as a substitute to legal contracts to implement transaction’s validation in blockchain network while avoiding any middle man. In simple words, smart contracts work on the principle of "if X happens, do Y" without any human intervention. Using this technology, business transactions, anything from a vehicle or house rental, through to loyalty points distribution can be automated and made more secure and transparent. Every retailer today pays a high cost to make sure the validity of the exchange of goods, money, and data. They must compensate third parties for their services and wait for each party to finish its work before receiving payment or a transaction confirmation. Blockchain-based secure transactions can reduce the need for such third parties.
Reduced time to complete and ensure transaction integrity as execution does not require human intervention.
Reduced cost required to complete and ensure transaction integrity as system require no middle man.
Prevents identity fraud by ensuring integrity between transaction participants.