Kimberly Rosales explains how the blockchain leads to financial innovation

The blockchain is a new reality that promises to change the way the financial and digital system is managed forever. This technology allows the transfer of data and capital in a completely secure way thanks to sophisticated coding and encryption. Aware of the change that this disruption could have on the financial world, Kimberly Rosales, cryptography expert, explains how blockchain brings an innovative aspect to the financial ecosystem.

You may have heard this term and still don’t know what it means, nor what impact it can have on your life. As happened with the penetration of the Internet, blockchain can change the way many people relate to the digital world of banking.

This favors, among other aspects, transactions, security or management of the electronic device. In addition, it allows a reduction of the bureaucracy required in financial operations and improves transparency.

The blockchain is a technology that makes it possible to create networks of devices without the need for a central and localized server to connect them to each other, explains Rosales. You can say that it works like a ledger, where purchases, sales or any transaction is recorded.

In order for these movements to be registered, they must be approved by the rest of the participants in the block network, in other words the users of this technology. And once the information is entered into them, it can no longer be deleted. Only new records can be added.

One of the advantages of this tool is that it allows to perform financial transactions quickly and securely against possible fraud and manipulation, since it uses encryption and coding. This allows companies to offer a more global payment option to customers, without jeopardizing the security of both parties.

Another great advantage it provides is the possibility of implementing a completely transparent business system where everyone can see the status of the accounts registered in this big book, or more simply, what comes in and what goes out in real time and at a low cost. But blockchain doesn’t just work for financial transactions.

With this technology, important company documents and information can be stored and transferred without the possibility of someone accessing it without your consent, claims Rosales. And what is more important: without the risk of it being modified. To guarantee the security and transparency of the vote, many companies use this technology to vote at the general meeting.

Transactions are stored in a tamper-proof public custody register organized in chronological blocks of strings. The tokens will represent trading assets so that all participating users or traders have access to the public blockchain. Accordingly, blockchain technology enables autonomous project execution, immutable records, and transparency of trading rules while enabling superior automation potential.

Blockchain has significant implications for future financial transactions. Information silos and excessively long waiting times are gone. Transactions are cheaper and more efficient. The transaction risk is reduced because the asset’s origin, credit history and other immutable elements of the record are inextricable. Lines of sight are also getting longer.

Trade is secured as it will be easier to verify and authenticate that each trading partner lives up to their respective end of the deal. Since audit trails are cryptographically stored and easily accessible, complex dispute processes become easier. Smart contracts implement binding agreements and negotiate in real time. DLT makes compliance possible and easier, says Rosales.

Therefore, financial institutions, regulators and key stakeholders in various industries are comfortable with the new infrastructure. Regulators, with distributed ledger technology, can access the shared trade and repository, and assist with the data they exchange and need.

About Kimberly Rosales

Kimberly Rosales is an entrepreneur and technology lover who early on understood the full possibilities that cryptocurrency could offer. She founded ChainMyne, a FINTRAC registered company, in 2020 as a means to provide an easier method to access digital currency as well as to empower cryptocurrency holders. While most of her time is devoted to ensuring that her business ventures are constantly running smoothly, she enjoys spending time with her family and exploring new places when she has some free time.