How Blockchain Is Changing The Banking And Financial Industries

It’s not often that new technology with the potential to change the world as we know it comes around. When something is described as such, many of us often think of it as hyperbole. That’s true enough in most cases. However, blockchain technology is an exception to that. Notably, blockchain technology is not super new either. The aforementioned technology was invented back in 2008. Although it has been a while since we’ve been introduced to the concept of blockchain, it’s only now that we’re starting to see its full potential. We’re also learning how it could greatly change the banking and financial sectors as we know them currently.

If you work in one of those sectors, you may need to work with a localisation service sooner rather than later. Introducing your clients to blockchain technology properly will likely become an essential task moving forward.

Understanding Blockchain

When financial translation services get started on introducing blockchain to your target clients, they will introduce it as a digital ledger and go further from there. The term “blockchain” hints at the structure of this form of technology. The different blocks comprising the structure contain various transactions. They tally the transactions that have been made along with corresponding timestamps. All those blocks also contain a cryptographic hash similar to what the block preceding them featured. The presence of that similar cryptographic hash connects the two blocks to one another.

What truly sets blockchain apart is the fact that it works as a decentralised form of technology. Since blockchain relies on a peer-to-peer network to function, there is no one point of vulnerability that can be targeted by potential thieves. It also empowers the participants in the blockchain. Furthermore, specific blocks along the chain cannot be changed without affecting others. That makes it tougher to enact fraud upon the participants because the transactions can be verified quickly and easily.

The Appeal of Blockchain

Now that we know a bit more about blockchain, let’s talk about why that technology has proven so intriguing to companies in the banking and financial sectors. If you’re in one of those industries, you may require the assistance of banking translation services to better elaborate the benefits of blockchain to your existing clients.

Blockchain Offers Convenience

It’s no secret that a lot of people are hesitant to participate in banking because of how inconvenient it can be. Banks are only open during typical working hours and not everyone can spare a day off from work. Here again is where blockchain can prove helpful.

Thanks to the security provided by blockchain, banks can become more flexible when it comes to accepting customer transactions. Requiring someone to show up at the bank just to make a deposit may no longer be necessary. Transactions can be completed securely off-site with the blockchain infrastructure in place. Banks can attract more customers if they start to operate that way. Off-site transactions are more convenient, but they present potential issues too. Customers may struggle to understand certain concepts if the features of blockchain are poorly explained.

Partner with a reliable localisation agency if you intend to offer off-site transactions via blockchain. Make instructions as clear as possible and avoid simple errors that could slow down your services.

Blockchain Tracks Transactions Accurately

Financial institutions have done a great job of insulating themselves against potential fraud and similar targeted attacks. Their ability to keep close tabs on their records allows them to do that. Blockchain will only prove helpful from that perspective. Considering how difficult it is to alter information on blocks without getting noticed, pulling off a nefarious trick such as fraud becomes significantly more difficult. All records can be secured better with the help of blockchain. Work with insurance translation services to communicate that distinctive benefit of blockchain to your insurance partners. You can also use the services provided by localisation services to accurately translate the contents of the transactions. Doing so guarantees that your business and your customers will always be on the same page with regards to the completed transactions.

Blockchain Heightens Security and Minimises Risk

Another reason why so many financial entities have taken an interest in blockchain is because of the security it provides. Remember that blockchain is decentralised. It’s harder to target that type of system because hackers won’t be able to just focus on a single entity. Spreading out the security to multiple nodes minimises the chances of thievery taking place. Even the transactions customers perform will become more secure with a blockchain buttressing it.

It’s important to communicate this aspect of blockchain to your clients so they understand how mutually beneficial it can be. Utilise financial document translation and rely on agencies such as elionetwork if you need assistance in that regard.

Are There Potential Downsides to Using Blockchain?

We would be remiss if we failed to address the potential risks of using blockchain technology that currently exist. For instance, there are still concerns about privacy since a lot of transaction details are made open to the public. Scalability is also a possible issue that must be tackled especially if banks will be adopting blockchain to continue serving a global audience. There’s also the not so small concern of energy efficiency because keeping blockchain operational requires a lot of power. Completely satisfying solutions to those potential problems do not exist at this time.  The saving grace here is that blockchain is still in its early stages. Developments and innovations will continue to arise. Possible solutions for blockchain-related issues could emerge along with those developments and innovations.

How Localisation Boosts Blockchain

Localisation can help increase blockchain adoption beyond making it easier to understand for external clients. As a business owner, you should also understand how important proper translation is to maximizing the potential of blockchain. Given the highly technical nature of this particular form of technology, even minor alterations in meaning can make a big difference. The meaning of a technical term may not be conveyed properly through incomplete or haphazard translation. You need software engineers to fully understand what they’re working with. After localisation, they will be able to extract the precise meanings of specific terms more accurately. Localisation also matters for the purposes of innovation. Software engineers can hand over their reports to translation services and highlight exciting discoveries or solutions they may have found. The growth of blockchain will speed up with the help of proper localisation. Over the course of development, different engineers and teams will also have to work with the blockchain framework your company uses. With data moving from one team to another, it is crucial that information be conveyed clearly and completely. That can only be done with the help of translation.

The Role elionetwork Can Play In The Increasing Adoption Of Blockchain

Blockchain is spreading throughout the banking and financial sectors, but the reality is that it remains a topic of great befuddlement for many people. It’s up to companies based in those industries to introduce the concept of blockchain better if they want their customers to accept it. That is where we at elionetwork can help out. We have a large network of linguists and translators spread out across five different continents. They are immersed in their respective cultures and are fully capable of translating information so it becomes easily understood by the masses. Choose us to be your localisation agency and let us work on all your technical and marketing documents. Communicate properly with your target customers and show them what you and blockchain have to offer.

Blockchain can be a remarkably complex topic and it remains unfamiliar to the majority of the population. People tend to fear what they do not clearly understand. Eliminate the confusion surrounding blockchain by using a translation service. Please feel free to contact us at elionetwork if you need more information. Reach out to us for a free quote or a free trial of our services!