wk 7 - fintech

Question 1

Reasons for fin tech innovations

Answer 1

• Easy to set up an account

-More attractive rates/fees

-Access to different products and services

-Better online experiences and functionality

-Better quality of service

-More innovative products than offerings from traditional banks

-Greater level of trust than traditional institutions

-Future of finance

-Available 24/7

Question 1

Fin tech (def)

Answer 1

FinTech is the application of emerging technologies, such as AI, blockchain, etc to the creation of new products, services and business models within financial services

Question 2

why is fin tech on the rise?

Answer 2

-Financial crises
-Banks, fees, and obsolete processes
-Growth of mobile devices and the internet
-Technological advancement

Question 3

What is blockchain

Answer 3

Blockchain can be described as a data structure that holds transactional records while ensuring security, transparency, and decentralisation

Blockchain is the technology that enables the creation of a distributed leger

Blockchain permits transactions to be
gathered into blocks and allows the resulting ledger to be
accessed by different servers

Question 4

History of blockchain

Answer 4

On October 31, 2008, Satoshi Nakamoto released the Bitcoin White Paper outlining a purely peer-to-peer electronic cash/digital asset transfer system

Question 5

what is block chain continued

Answer 5

Blockchain is a system comprised of..

Transactions —-Encryption processes
Consensus mechanisms — Immutable ledgers
Optional Smart Contracts — Decentralized peers

Question 6

why do we need blockchain

Answer 6

Resilience:Blockchains is often replicated architecture. The chain is still operated by most nodes in the event of a massive attack against the system.

Time reduction:In the financial industry, blockchain can play a vital role by allowing the quicker settlement of trades as it does not need a lengthy process of verification, settlement, and clearance because a single version of agreed-upon data of the shared ledger is available between all stack holders.

Reliability:Blockchain certifies and verifies the identities of the interested parties. This removes double records, reduces rates, and accelerates transactions.

Security:Attacking a traditional database is the bringing down of a specific target. With the help of Distributed Ledger Technology, each party holds a copy of the original chain, so the system remains operative, even a large number of other nodes fall.

Transparency:Changes to
public blockchains are publicly viewable to everyone (some blockchains are private to certain groups). This offers greater transparency, and all transactions are immutable.

Collaboration– Allows parties to transact directly with each other without the need for mediating third parties.

Decentralized:There are standards rules on how every node exchanges the blockchain information. This method ensures that all transactions are validated and all valid transactions are added one by one.

Question 7

Encryption

Answer 7

Standard encryption practices
Some Blockchains allow for “BYOE” (Bring Your Own Encryption)
Only as good as the next hardware innovation
All blocks are encrypted
Some Blockchains are public, some are private
Public Blockchains are still encrypted, but are viewable to the public
Private Blockchains employ user rights for visibility, e.g.
Customer – Writes and views all data
Auditors – View all transactions
Supplier A – Writes and views Partner A data
Supplier B – Writes and views Partner B data