Angelo Babb explains how the financial world is innovating through blockchain

There is no doubt that the blockchain is a new reality that promises to revolutionize the way the financial and digital world is run for the foreseeable future. As a result of sophisticated coding and encryption, this technology allows the transfer of data and capital in a completely secure way. Angelo Babb, a cryptography expert, explains how blockchain offers an innovative aspect to the financial ecosystem in light of the disruptions that may affect it.

You may have heard of the term blockchain and not fully understood what it means, nor what impact it can have on your life. As happened with the penetration of the Internet, blockchain may change the way many people relate to the digital banking world in the near future.

In other words, it is a great help to the electronic entity, not only in terms of transactions, security or administration, but also in terms of reducing the amount of bureaucracy necessary for financial operations and improving transparency.

Blockchain technology was developed by the team at the University of Toronto and it makes it possible to create networks of devices without using a central and local server to connect the devices to each other, explains Babb. You can say that it works like a ledger, where purchases, sales or any transaction is recorded.

This is because the movement of these people is part of a block network, which means that every movement to and from that network must have been 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.

In addition to offering the ability to perform financial transactions quickly and securely against possible fraud and manipulation, this tool also offers the ability to encrypt and encode them to prevent possible fraud and manipulation. By using this technology, companies can provide their customers with a wider range of payment options, without compromising the security of both parties.

In addition to being able to implement a completely transparent business system, it allows everyone to see in real time and at a low cost what comes in and what goes out in the accounts registered in this big book, or so to speak. simply, what comes in and what goes out of the business. However, the blockchain does not only work in financial transactions.

Babb explains that this type of technology makes it possible to store and transfer important documents and information without the possibility of someone accessing it without your consent, and that it is completely protected. Moreover, many companies use this technology to vote at their general meetings to ensure that the vote is secure and transparent. To ensure the security and transparency of the vote, many companies make use of this technology.

As a result of the public blockchain, any user or trader can access the public blockchain, which will be organized chronologically into blocks of strings. The tokens will act as means of trade so that all involved users or traders have access to them. As a result of blockchain technology, projects can be executed autonomously, records can be immutable, trading rules can be transparent, and automation is possible to a greater extent.

A major advantage of blockchain is that it eliminates information silos and unnecessary waiting times, making transactions cheaper and faster. Blockchain will have a significant impact on future financial transactions. Due to the immutable nature of the asset’s origin and credit history, transaction risk is reduced and horizons are extended as a result.

Trade will be secured as each trading partner is more likely to honor their end of an agreement if it can be easily verified and authenticated. Since blockchain smart contracts are able to execute binding agreements and negotiate in real time, complex dispute processes are simplified as audit trails can be stored cryptographically and easily accessed. It is possible and easier to comply with DLT, concludes Babb.

The emerging infrastructure has therefore attracted financial institutions, regulators and key stakeholders in the various industries. Using distributed ledger technology, regulators can access a shared trading and custody system, helping them obtain and exchange the data they need.

About Angelo Babb

Angelo Babb is a cryptocurrency and blockchain legal consultant who helps new and established organizations strengthen their digital asset interactions. A certified attorney and Scrum Master, he works with all categories of businesses to ensure that cryptocurrency endeavors substantially meet their obligations. When not furthering his education in the cryptocurrency and blockchain fields, Babb enjoys relaxing on the beach with his family.