Blockchain beyond Bitcoin: how is the technology transforming financial services?

The technology blockchain, widely associated with Bitcoin, has already demonstrated its potential to transform sectors beyond cryptocurrencies. 

This is because, in financial services, the use of blockchain offers more transparency, security and efficiency. 

Therefore, as banks and other institutions seek innovation, blockchain stands out, enabling new business models and optimizing traditional processes.

That said, this text explores how blockchain beyond Bitcoin has a direct impact on various financial applications. 

From smart contracts to international remittances and audits, this technology could revolutionize the way we manage assets and conduct financial transactions. Therefore, with current data and detailed analysis, we will understand how blockchain is already shaping the future of financial services.

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Smart contracts: simplifying agreements and eliminating intermediaries

Smart contracts, or smart contracts, are one of the main uses of blockchain beyond Bitcoin, transforming the way financial agreements are made. 

This is because, developed on the blockchain, these self-executing contracts eliminate the need for intermediaries, such as lawyers or notaries, guaranteeing the execution of the agreed conditions. 

For example, in a loan, the contract is automatically terminated when payment is completed, without human intervention.

Deloitte’s research on blockchain shows that smart contracts reduce the time and cost of completing transactions by up to 50%. 

After all, in a traditional scenario, the execution of financial contracts involves a series of bureaucratic processes that can delay transactions and increase costs.

Comparative table of costs and times with and without smart contracts:

Therefore, the implementation of smart contracts can reduce costs, and also improve trust between parties. 

As Vitalik Buterin, creator of Ethereum, states, “smart contracts minimize dependence on trust, promoting a fairer and more transparent environment”.

Reinternational messes: efficiency and savings in global transactions

In the traditional financial scenario, sending money between different countries involves high fees and long processing times. 

However, with blockchain in addition to Bitcoin, it is possible to carry out cross-border transfers quickly and at significantly lower costs. 

This is because this process is done in a decentralized and secure way, which avoids additional intermediary fees and reduces waiting time.

Data from the World Bank shows that international remittances total around $715 billion annually, with transaction fees representing up to 7% of this value. 

So, by adopting blockchain, it is estimated that these fees can be reduced to less than 1%, promoting savings for both individuals and companies.

Therefore, the reduction in fees and accelerated transaction times make blockchain an attractive choice. 

After all, international remittances, previously seen as complicated and expensive, become more accessible with this technology, democratizing access to global financial services.

Audit and compliance: simplification and transparency in financial processes

Auditing is essential to ensure the transparency of financial operations. However, conventional audit processes can be complex and susceptible to human error. 

With blockchain technology in addition to Bitcoin, it is possible to store information in an immutable and traceable way, simplifying audits and ensuring greater accuracy.

Large auditing companies, such as PwC, already use blockchain to monitor transactions in real time, and this allows operations to be viewed in more detail and reduces the need for manual reviews, streamlining compliance and inspection processes. 

According to a PwC report, the use of blockchain can reduce audit time for complex transactions by up to 30%.

Furthermore, the transparency provided by blockchain is a valuable resource in the financial sector, as data cannot be altered or corrupted. 

For audits, this represents a solid source of verification, increasing trust between financial institutions and their customers.

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Loans and financing: greater agility and security for granting credit

Granting credit and financing is a fundamental process for the economy, but it often involves bureaucracy and a lack of security. 

That said, blockchain, alongside Bitcoin and other cryptocurrencies, enables new credit models that reduce analysis time and increase security. 

This is because, on blockchain-based platforms, it is possible to create transparent and immutable credit records, which facilitates risk analysis and speeds up the approval process.

According to research from the Boston Consulting Group, using blockchain for credit analysis reduces approval times by up to 40%, as well as enabling greater financial inclusion for individuals with limited credit histories. 

Furthermore, the use of credit tokens ensures that each customer’s financial history is easily accessed, preventing fraud and inconsistencies.

Therefore, by ensuring greater transparency and security, blockchain makes the credit granting process more efficient and accessible, contributing to the democratization of financial services.

Gare of digital assets: security and transparency in high-value transactions

Blockchain, in addition to Bitcoin, also stands out in the management of digital assets, such as bonds and shares, allowing direct trading between investors. 

This eliminates the need for intermediaries, reducing costs and promoting greater transparency in transactions. 

Furthermore, asset tokenization allows anyone to have fractional ownership of an asset, making the market more accessible.

An analysis by the World Economic Forum estimates that 10% of global GDP will be stored on blockchains by 2027. 

This data highlights the potential of technology to expand asset liquidity and simplify property transfer operations. 

However, regulation is still a challenge for the full implementation of this practice.

This is because, by simplifying asset management and offering security, blockchain expands access to investments, facilitating the market for small investors, and this transformation can directly impact the way capital is distributed and managed.

Insurance: innovation in contracts and claims processing

The insurance sector is known for its complexity and often slow claims processing. 

The blockchain beyond Bitcoin has been transforming this area, especially with regard to smart contracts. 

This is because, with them, insurers can automatically define claims compensation criteria, speeding up payment.

According to the Accenture study, the use of blockchain can reduce claims processing time by up to 70%. 

Furthermore, fraud becomes less frequent as transactions are recorded on a public and immutable platform.

This advancement allows for a more agile and effective customer experience, in addition to reducing administrative costs. 

Insurers can thus optimize their processes, ensuring greater transparency and security for customers.

Final considerations: the future of blockchain beyond bitcoin in financial services

Blockchain beyond Bitcoin is already bringing significant transformations to financial services, from contract fulfillment to asset management and audits. 

In this way, these applications are opening new paths for innovation in the sector, allowing greater inclusion and efficiency. 

However, blockchain technology still faces regulatory and public acceptance challenges, but its adoption is growing.

The quote from Don Tapscott, author of “Blockchain Revolution”, illustrates this scenario well: “Blockchain is not just a technology; It’s a new way of seeing the world.” 

As its applicability expands, blockchain has the potential to reshape financial services, fostering an era of transparency, security and innovation.

The following table summarizes the main benefits of blockchain in different financial applications:

Finally, blockchain beyond Bitcoin is creating new paradigms of efficiency in financial services, enabling an approach that prioritizes security, accessibility and financial inclusion.

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Roberta 24 de January de 2025