As Bitcoin and other cryptocurrencies take the global tech community by storm, technologists must not overlook the application of blockchain technology across other industries.

FREMONT CA: The immense popularity of cryptocurrencies on several occasions has reiterated the versatility of blockchain, which is often regarded as a distributed ledger technology. Blockchain has the potential to reduce cost owing to its high digitalization capabilities, allowing transactions to be carried out with much higher efficiency. Completely digitalized procedures can also reduce counterparty risk and the associated costs. Blockchain also houses excellent potential to reduce back-office resource requirements and enhance the efficiency of several processes. The technology finds particularly interesting applications in the financial sector, where it can be deployed for private banking, wealth management, and investments. In addition to cryptocurrencies, Blockchain can be employed for effective tokenization of assets. The tokenization of assets will motivate new groups of individuals to invest in the forms of assets that were historically only reserved for the rich. Financial institutions can then execute the democratization of wealth management and make alternative assets accessible to a broader market.

When individuals are offered seamless integration of digital assets by banks, this diminishes the entry barriers substantially, whether these are tokenized assets or cryptocurrencies. Investment in cryptocurrencies, to a certain extent, is a matter of faith and trust. Hence, education on the Blockchain, in particular, could reduce hesitations and make investors aware of the immense benefits of the technology in today's market scenarios, cryptocurrencies promise great ROI but are highly volatile, and thus, subject to market risks. Restraint by investors is hereby expected. However, blockchain technology could revolutionize the financial industry for the good and future-proof it for unprecedented events.

Analyzing more of its capabilities, one could say that blockchain will find several applications in not just the financial industry but other sectors as well, such as healthcare and pharmaceutical. In the wake of the digitalization induced by the pandemic, tokenization of assets will become an excellent tool for the financial industry to acquire new customers and upsell in their existing client bases.