Blockchain: digital financial database
What is blockchain?
Blockchain is a type of Distributed Ledger Technology (DLT) that enables the logging of transactions and tracking of files within a business network and provides a single source of banking information.
Global companies such as IBM, BBVA, and Santander already use this technology to improve operational efficiency and the traceability of their financial products.
Purpose
To log asset transactions without the need for a central authority, such as a bank or clearinghouse, ensuring that information is transparent and resistant to manipulation.
Decentering:
It's not dependent on a single server; the data is distributed through a global node network, which eliminates weak points.
Unchangeable:
Once a log is validated and added to the chain using cryptography, it cannot be altered or deleted.
Transparent and secure:
Only authorized parties can access the synchronized transaction log in real-time, reducing human errors
and fraud.
Key applications
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Cross-border payments: it enables near-instant, low-cost international transfers by eliminating banking intermediaries.
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Decentralized finance (DeFi): through protocols that automate loans and trades using smart contracts, allowing operations to be carried out without a central bank.
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Asset tokenization: digital representation of real assets (real estate, treasury bonds) to facilitate their purchase and sale in fractions.
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Settlement and auditing: to accelerate account reconciliation and auditing processes by using a sequential, chronological record of financial data.
Traditional international transactions with a SWIFT code
The money goes through the issuing bank, the correspondent bank, and the receiving bank; the transfer process takes between 2 and 5 business days, and different fees are charged by each intermediary involved.
International transactions with blockchain
The money is sent from point A to point B through a decentralized network. The process is nearly instantaneous and is available 24/7.
