In the past transactions where recorded in scrolls and then journals, which were what we now call a database. The invention of the computer though enabled banks to make all this information digital using a database. Finally, the idea of blockchain allows to turn these now obsolete means through a decentralized, distributed database in which a copy sits on every “node” and is continually reconciled with each transaction. This method’s immediate advantage is that it made the database virtually unattachable.
An ascending global force
Thinking about the future development of a distributed database is very important to understand how it may come to influence mostly industries that handle lots of information (for example Healthcare sector). This project could even lead at an entire decentralization of the entire world web databases.
Even online brokers as IQ Option, faces that problem (source : digitalbusiness forex brokers review). According to last IQ Option report, 80% of investments in their trading platform, came from ICO.
One the guaranteed advantages is security: with current database technology, based on centralized models, the safety of personal and reserved information is always so fragile that the risk you will have your identity stolen is real and it’s a serious concern. Applied to online trading, the situation becomes even worse. By using blockchain technology we could discover a totally new concept of the infrastructure that supports millions of transactions every day, and industries could really save money on the long run. As trading platforms are always searching for new methods to maintain their user’s information safe and highlight their security, this revolution may affect them on a large scale.
Other secure benefit of blockchain system is transparency: even since 1990’s, the period when online trading growth started to peak, individual traders and beginners have always felt easy pray for behind-the-scene frauds. Even with present technology, aware of the risks, traders continue their activity always hoping to not have to deal with this kind of theft, but knowing that it can be a possibility. That’s mostly because online trading is still an unregulated business, but a marked built on blockchain may really make a difference in this matter, and every platform’s image would gain in affidability.
Liquidity is a key factor for any market trends and it often determines success of failure. Blockchain technology seems to have a solution even for this important factor, increasing the system efficiency and lowering costs, and this fact surely contributes to a rise of liquidity.
Of course, switching to a blockchain online world is not so easy as it seems, and it’s best to not expect anything big for a couple of years, but it definitely will come a future when blockchain will dominate financial systems, but before that there are challenges that must be overcame. But the online trading community trust that these problems will be solved and more technological growth will follow, so let’s keep waiting for a bright future!