Post-COVID, the finance industry is ripe for decentralization. The traditional centralized financial system has been under immense pressure in recent years. That's the critical reason why most financial companies in the industry are switching towards blockchain consulting to get a clear road map.
As blockchain is also constantly evolving, it can be hard to keep up with all the changes and trends. However, especially for those new to the space, it is essential to know about the latest trends to make better decisions when consulting. Here are seven of the most robust decentralized trends in blockchain consulting for the finance industry that you should know to scale and secure your business:
Smart contract implementation:
With the increasing popularity of Ethereum, many companies are now looking to implement smart contracts into their business operations. Smart contracts can help to automate many processes and reduce the need for third-party intermediaries. This can lead to significant cost savings and efficiency gains. Moreover, smart contracts allow trustless collaboration and can be used to create tamper-proof records.
Initial Coin Offering (ICO):
An ICO is a way for startups to raise funds by issuing digital tokens. These tokens can be used to access the company's services or traded on cryptocurrency exchanges. ICOs have become extremely popular in recent years and have helped many companies to raise millions of dollars. The working of ICOs is similar to that of an IPO (Initial Public Offering). However, ICOs are rapidly fast and allow companies to raise funds quickly and easily.
Asset-backed digital tokens:
Asset-backed digital tokens are a type of cryptocurrency that is backed by physical assets. These tokens can be used to represent ownership of real-world assets such as precious metals, commodities, or real estate. This type of token is becoming increasingly popular as it provides a way to invest assets without purchasing them directly. This trend in finance is being followed by many companies such as GoldMint and Digix.
Non Fungible Tokens (NFTs):
NFTs are a type of digital asset that is not interchangeable with other assets of the same kind. They are unique and can be used to represent items such as digital artwork, collectibles, or gaming items. NFTs have recently gained popularity due to their ability to provide scarcity and proven ownership. Many companies are now using NFTs to create digital marketplaces for their products and services.
Decentralized exchanges (DEX):
A decentralized exchange is a type of exchange that does not rely on a central authority. This type of exchange is often used for trading cryptocurrencies. DEXs are becoming increasingly popular as they offer many advantages over centralized exchanges. Some of these advantages include improved security, privacy, and decentralization. In addition, DEX in finance is a very powerful tool that can help to reduce the risk of fraud and theft.
Central Bank Digital Currencies (CBDCs):
A central bank digital currency is a type of digital currency that is issued by a central bank. CBDCs are designed to provide a more efficient and convenient way to make payments and store value. They are also intended to reduce the reliance on cash and promote financial inclusion. Many countries are currently exploring the possibility of issuing their own CBDCs. Several financial bodies are also working on developing global standards for CBDCs.
Digital identity is a way of verifying the online identity of an individual or entity. It is used to authenticate the owner of a digital asset, such as a cryptocurrency. For example, digital identity can be stored on a blockchain and used to verify the ownership of assets, such as property or land. This trend is becoming increasingly popular as it provides a more secure and efficient way to verify identity online.
These are some of the most important decentralized trends in blockchain consulting for the finance industry. Moreover, these trends are likely to have a significant impact on the way businesses operate in the future. It is therefore essential that you keep up to date with these trends so that you can make the most of their potential.
Get started with Seven Bits!
Seven Bits is a leading blockchain consulting company offering a wide range of services to businesses in the finance industry. We have a team of experienced professionals who can help you to understand and make the most of these trends.
Be it smart contracts development, dApp development, DEX Exchange development, or anything else related to blockchain technology; we can help you! Moreover, we have a dedicated Blockchain Center of Excellence (CoE) that is constantly exploring new trends and developing innovative solutions. So, if you are looking for a partner to help you navigate the world of blockchain, Seven Bits is here to help! Get in touch with us at [email protected] to explore immense blockchain possibilities for your business's scalability.