The importance of Blockchain in the Fintech ecosystem and digital business

Blockchain technology is a growing list of records running on a network. Its system is not unlike that of a database, but much more secure. The records are called blocks cryptographically linked together to form a chain.

Its use has contributed significantly to the fintech ecosystem, reinforcing its security and that of digital businesses. As it is a distributed technology, where each network node stores an exact copy of the information in chain, data availability can be guaranteed at all times. 

In the event that an attacker attempts to cause a system failure, he must override all the nodes in the network. With only one node being operational, the information will be available, this creates a very important cybersecurity reinforcement, WeLiveSecurity explained.

Recently, Dataintelo.com conducted an analysis report on the global Fintech Blockchain market detailing the increase in its use in the market. It is estimated that the impact provided by COVID-19 in the world made companies put the financial security of digital banking in the spotlight and strengthen it. 

In the analysis, Dataineldo identified a growing share of this technology in the Fintech sector in payments products, exchanges, smart contracts, identity and compliance management, cyber liability and content storage management, to name a few. 

One of the most important features of the Blockchain is that it has its own security system to monitor and track the multiple transactions that occur daily in the banking industry and now more with the increased presence of digital businesses. Thanks to this, data loss is reduced, in addition to preventing hacking and other fraudulent activities, Fintech News assured.

In Colombia, the pandemic generated a significant increase in the use of technology in transactions, which is why companies focused on digital development such as Nuvu continue to create financial products such as Wisse, a financial core, the brain of a digital platform, which is responsible for generating the necessary transactions of an application. This alternative reinforces security by reducing the risk of impersonation through facial biometrics and Artificial Intelligence, among other features. 

The future of Blockchain technology is expected to be used to further increase security and transparency helping platforms to grab the attention and trust of users in digital banking and digital business .