Fintech is constantly in the process of innovation. A decade ago, it was digital-only. Nowadays, it is decentralized also. UNICA, the first-ever digital decentralized bank in the world, is the best example of innovation in this domain of finance.
What Is Digital Decentralized Banking?
Correct understanding of this fintech innovation is possible only through the understanding of this financial trend’s origin.
It is an alternative to the traditional centralized financial system. This is likely to replace the traditional centralized financial system. The emergence of cryptocurrency banks like UNICAS has already turned this utopian dream into an unimaginable reality.
Some Examples of Virtual Decentralized Banking Systems:
The list contains but is not limited to the following only:
- The Swedish Bank.
- The currency’s role in China.
- The development of Bitcoin in 2009.
This is something you must know about it. This will help you understand the concept of digital decentralized banking.
Blockchain is a decentralized ledger technology designed and developed to maintain records of decentralized financial transactions carried out digitally. It is a chain of blocks connected together. This chain of blocks contains the information related to the transaction carried out.
More importantly, this digital ledger technology safeguards transaction-related information. It makes it hard for financial criminals to gain access to the information of the transaction carried out.
This form of innovation in the domain of virtual finance is now being embraced by the government in all parts of the world. They have devised their own strategies to leverage the potential of this technology in all walks of life.
Decentralization and blockchain together are the two most important powerful features of a virtual decentralized banking system.
Coming back to the point, digital decentralized banking is a new banking concept. It is based on blockchain, a digital ledger technology.
Our next post in this regard will guide you about the way blockchain and decentralized digital banking are innovating users’ financial experiences in many ways.
Therefore, keep coming back to learn more about it in detail.