What exactly is blockchain used for?

Blockchain technology in finance is used for a variety of purposes, including: 1. Secure and transparent transactions: Blockchain technology allows for secure and transparent transactions by creating a distributed ledger that records all transactions in a tamper-proof manner. This helps to reduce the risk of fraud and increases trust in the financial system. 2. Cross-border payments: Blockchain technology can be used to facilitate cross-border payments by enabling faster and more cost-effective transactions. This is particularly useful for international trade and remittances, as it eliminates the need for intermediaries and reduces transaction fees. 3. Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. These contracts are stored on a blockchain and automatically enforce the terms of the agreement, reducing the need for intermediaries and increasing the efficiency of transactions. 4. Identity verification: Blockchain technology can be used for identity verification, allowing individuals to securely store and share their personal information without the need for a centralized authority. This can help to reduce the risk of identity theft and improve the efficiency of KYC (know your customer) processes. 5. Asset and securities trading: Blockchain technology can be used to facilitate the trading of assets and securities, such as stocks, bonds, and commodities. By creating a decentralized and transparent trading platform, blockchain technology can reduce the risk of fraud and improve the efficiency of trading processes. Overall, blockchain technology has the potential to revolutionize the financial industry by increasing security, transparency, and efficiency in transactions and reducing the need for intermediaries.