The role of bitcoin and blockchain in the future of Fintech

2 min reading
The role of bitcoin and blockchain in the future of Fintech
The role of bitcoin and blockchain in the future of Fintech

BBVA API Market world of mobile payments continues to evolve to make clear–along with the now classic credit cards–that, in the not too distant future, the use of cash will not be as usual as today. Meanwhile, blockchain–the technology bitcoin is based on– intends to revolutionize the business world so that, in effect, exchanges stop functioning with coins and notes.

According to a recent study by professional services firm PwC, 60% of banking professionals say they are already familiar with this protocol that could radically change the industry. Not surprisingly, the consultancy firm itself states that its use would allow entities to reduce their costs and facilitate that transactions are carried out with greater transparency, thereby promoting regulatory compliance.

All this thanks to the very nature of blockchain. The technology does nothing other than creating a system of public accounting, while preserving the anonymity of its users. In addition, the protocol provides security through private keys: a secret number that only users have in their bitcoin wallet allowing them to be the only ones to spend their money. Thus, each time a transaction occurs through the use of a private key, the exchange of bitcoins is publicly reflected in blockchain, that sort of log book in which, in addition, any input remains unchanged over time, being registered forever.

However, beyond the use of cryptocoins, blockchain technology can revolutionize Fintech, that mix of technology and finances, thanks to the so-called side chains. They are, so to speak, the spin-off of blockchain: their aim is to record transactions of specific markets beyond the bitcoins. After all, the assets that can be exchanged can be coins, property deeds or, why not, any type of contract.

In fact, that is the branch of the blockchain technology with the greatest potential in the future, and at the same time, the one posing the most challenges to the banking sector. At the end of the day, it could mean the end of economic transactions as they have traditionally been done.

The boom of this protocol–created in 2009 by Satoshi Nakamoto, the father of bitcoin and blockchain–is reflected in the surge of hundreds of start-ups based on this technology. The undeniable interest of the traditional banking sector in this branch of Fintech augurs alliances in the short term. In the end, the goal is shared: basically to facilitate payments and transactions.

That is precisely the purpose of Payments, the API of Spanish banking group BBVA. With it, developers responsible for third-party applications can offer users a personalized transfer service allowing them to enjoy the benefits of fast and secure money exchanges.

Read more information about bitcoin and APIs:

Ebook Bitcoin & APIs

The big business of bitcoin: make money with APIs

Blockchain: the bitcoin ecosystem based on APIs

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