This blockchain-as-a-service (BaaS) provides the easiest, lowest-risk gateway to experimenting with distributed ledger technology in the cloud. Eliminate the need for a large upfront capital investment and fast-track blockchain implementation across your business.
Traditional systems tend to be cumbersome, error-prone and maddeningly slow. Intermediaries are often needed to mediate the process and resolve conflicts. Naturally, this costs stress, time, and money. In contrast, users find the blockchain cheaper, more transparent, and more effective. Small wonder that a growing number of financial services are using this system to introduce innovations, such as smart bonds . The former automatically pays bondholders their coupons once certain preprogrammed terms are met. The latter are digital contracts that self-execute and self-maintain, again when terms are met.
Examples of blockchain financial services applications
1 Asset Management: Trade Processing and Settlement
Traditional trade processes within asset management (where parties trade and manage assets) can be expensive and risky, particularly when it comes to cross border transactions. Each party in the process, such as broker, custodian, or the settlement manager, keeps their own records which create significant inefficiencies and room for error. The blockchain ledger reduces error by encrypting the records. At the same time, the ledger simplifies the process, while canceling the need for intermediaries.
2 Insurance: Claims processing
Claims processing can be a frustrating and thankless procedure. Insurance processors have to wade through fraudulent claims, fragmented data sources, or abandoned policies for users to state a few – and process these forms manually. Room for error is huge. The blockchain provides a perfect system for risk-free management and transparency. Its encryption properties allow insurers to capture the ownership of assets to be insured.
3 Payments: Cross-Border Payments
The global payments sector is error-prone, costly, and open to money laundering. It takes days if not longer for money to cross the world. The blockchain is already providing solutions with remittance companies such as Abra, Align Commerce and Bitspark that offer end-to-end blockchain powered remittance services. In 2004, Santander became one of the first banks to merge blockchain to a payments app, enabling customers to make international payments 24 hours a day, while clearing the next day.
Three Companies Leading the Blockchain as a Service (BaaS) Revolution
Ethereum Blockchain as a Service by Microsoft Azure: In November 2015, Microsoft and ConsenSys entered a partnership to create Ethereum blockchain as a service (EBaaS) on Microsoft Azure. The service is aimed to empower corporate clients, partners and developers to experiment with distributed ledger technology by offering them “a single-click, cloud-based blockchain developer environment.
In addition to the opportunity to experiment, it allows them to create private-, public- and consortium-based blockchain environments using industry-leading frameworks very quickly, distributing their blockchain products with Azure’s World Wide distributed (private) platform.
Rubix by Deloitte: Rubix provides solutions for clients to understand and capture the power of blockchain for their businesses. The solution allows to prototype, test and build customized blockchain and smart contract application for any use case.
They build blockchain-based apps more rapidly on Rubix because its blockchain as a service API allows us to focus on user experience and business domain.”