Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Cryptocurrency»How Blockchain Technology Is Impacting Financial Planning
    Cryptocurrency

    How Blockchain Technology Is Impacting Financial Planning

    October 19, 20245 Mins Read


    peshkov / Getty Images/iStockphoto

    peshkov / Getty Images/iStockphoto

    Blockchain technology, the technology that keeps cryptocurrency secure, has come a long way since its inception. Today, the technology doesn’t just power popular cryptos like bitcoin and ethereum — it is also the vehicle for storing and trading non-fungible tokens (NFTs) and supporting the tokenization of real estate and fine art.

    Explore More: 5 Expert-Recommended Alternative Investments: How They Work and When To Invest

    Read Next: 9 Things You Must Do To Grow Your Wealth in 2024

    Blockchain is faster and more secure than traditional transactional methods and is playing a tremendous role in financial planning and wealth transfer, which only promises to grow with time. For instance, the market for tokenized assets could reach $2 trillion to $4 trillion by 2030, according to a recent McKinsey & Company report. This is a far cry from numbers of $10 trillion previously projected by Boston Consulting Group. McKinsey reported that we may see the most growth in assets like mutual funds, bonds, ETFs and loans.

    “Blockchain technology is still in early days and requires a material amount of integration with existing processes and standards,” Anthony Moro, CEO of Provenance Blockchain Labs, told CoinDesk. “Most institutions recognize tokenization needs to be a large part of their business moving forward, but technical integration is where the rubber meets the road.”

    Here’s a look at the role blockchain might play in key areas of financial planning.

    It’s Going Viral: Want to Retire Rich? Suze Orman Says You’re Missing This Key Money Move

    What Is Blockchain Technology?

    First, let’s back up for a quick review of exactly what blockchain is and how it works.

    Blockchain is, essentially, a permanent, shared record book in digital form, or a decentralized ledger of transactions conducted over peer-to-peer networks. The ledger tracks transactions and also aims to build a consensus about whether the transaction data is valid. With blockchain technology, users can confirm transactions without requiring a central clearing authority.

    Check Out: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You

    Why Is Blockchain Important?

    Blockchain aims to deliver stored information immediately and transparently on a ledger that can be accessed only by network members. Members share a single view of orders, payments, accounts and other information, which helps build trust, efficiency and financial opportunities.

    Blockchain eliminates the need for central recordkeeping, and because the ledger is made public, everyone involved can easily gain access. This transparency helps accelerate the verification process, reduce the need for back-office functions, and promote security.

    How Does Blockchain Work?

    One key element of blockchain is that every transaction requires a security measure to protect the identities of transacting parties. To secure transactions of bitcoin and other cryptocurrencies, two keys are required — a private and a public key.

    The public key is shared permanently in the log. It can be used to sign and encrypt a message. The private key is only known to users and acts as a pin code. A recipient uses this key to decrypt a transaction. The technology introduces speed, efficiency, security and reduced costs, albeit at the expense of tremendous environmental impact.

    Processing transactions on the blockchain requires sophisticated computers that tend to be energy hogs. If this drawback can be addressed, we will undoubtedly see blockchain play an even larger role in financial planning. Here are a few ways it’s being used today.

    Tokenization of Real Estate, Commodities, Fine Art and Illiquid Assets

    Investors in fine art, commodities and real estate face several challenges. When you invest in art, you need a place to store and preserve the pieces, as well as insurance to protect it. By creating NFTs of artwork, these assets can be easily tradeable. They can even be duplicated, although this will diminish their ultimate value.

    Tokenizing real estate via blockchain technology enables investors to deal in fractional shares, making investing in high-rise apartments or other commercial real estate more accessible to retail investors.

    Streamlining Loan Funding and Dividend Payments

    Smart contracts operate on the blockchain, with the terms of the agreement written into the code. Smart contracts eliminate the need for intermediaries for loan issuance or dividend payments. Blockchain can facilitate faster loan funding, as well as automatic dividend payments at faster speeds and lower costs.

    Facilitating Faster Cross-Border Transactions

    Because blockchain transactions are deregulated — without a central government authority behind them — cross-border transactions can take place quickly and seamlessly, with lower fees, according to a LinkedIn Pulse article by Charles Lau of Digital Perpetual.

    P2P Lending Platforms and Crowdfunding

    Likewise, blockchain is playing a role in facilitating peer-to-peer lending and crowdfunding transactions. Its security, transparency and speed can facilitate transactions at faster speeds and lower costs, with a smaller risk of fraud.

    Whether you’re launching a business or seeking to invest in start-ups, blockchain can make it easier and more accessible.

    Final Note

    As much as blockchain has evolved this century, the technology is still in its relative infancy. As younger generations explore the possibilities, cryptocurrency, NFTs and other tokenized assets could play a large role in the transfer of generational wealth.

    More From GOBankingRates

    This article originally appeared on GOBankingRates.com: How Blockchain Technology Is Impacting Financial Planning



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Zelensky introduced special anti-Russian sanctions for cryptocurrency payments — EADaily, July 6th, 2025 — Politics, Russia

    Cryptocurrency

    Next Cryptocurrency to Explode, 6 July — Story, Alchemy Pay, Injective, MX Token

    Cryptocurrency

    Ukraine imposes sanctions on Russian financial, cryptocurrency schemes

    Cryptocurrency

    BAY Miner Announces Major Launch: Free Mobile Cloud Mining App Drives Global Expansion into Eco-Friendly Cryptocurrency

    Cryptocurrency

    Trump’s net worth surpasses $10 billion, fueled by cryptocurrency and media holdings

    Cryptocurrency

    Why More Aussies Are Switching to Digital Forex Platforms

    Cryptocurrency
    Leave A Reply Cancel Reply

    Top Picks
    Property

    Transcript : Delta Property Fund Limited, 2025 Earnings Call, Jun 03, 2025

    Fintech

    La fintech tricolore Younited entre à la Bourse de Paris

    Precious Metal

    Paris Olympics 2024 highlights: Torri Huske takes gold in 100 butterfly; U.S. wins men’s basketball opener

    Editors Picks

    PAN GLOBAL INTERSECTS 6.5M OF 1.22 G/T GOLD AND 14M OF 0.46% COPPER, EXPANDING MINERALIZATION AT CAÑADA HONDA DISCOVERY, ESCACENA PROJECT, SOUTHERN SPAIN USA – English USA – English

    July 18, 2024

    Utilities Quietly Walk Back Commitments to Diverse Hiring, Social Justice

    April 30, 2025

    Top UK Cities for Property Investment and Rental Yields

    July 3, 2025

    Property scams: what are they and how to avoid them

    May 6, 2025
    What's Hot

    Property by the Pound – PropertyWire

    April 1, 2025

    Dubai: Dirham drop helps British, European, Indian property investors save millions

    June 10, 2025

    Bengaluru man attacked and robbed of Rs 2 crore while attempting to convert cash into cryptocurrency

    June 28, 2025
    Our Picks

    qu’est-ce que le cadmium, métal cancérigène présent dans nos aliments de tous les jours ?

    June 5, 2025

    Ghana’s President John Mahama’s 𝕏 Account Hacked, Used To Promote Fraudulent Cryptocurrency Scheme

    March 18, 2025

    Luxaviation investit dans les carburants durables avec Haffner Energy

    June 18, 2025
    Weekly Top

    BAY Miner Announces Major Launch: Free Mobile Cloud Mining App Drives Global Expansion into Eco-Friendly Cryptocurrency

    July 6, 2025

    la station d’énergie portable qui veut tout faire, partout

    July 6, 2025

    DTD: Dividend Investing Makes More Sense Than Ever (NYSEARCA:DTD)

    July 6, 2025
    Editor's Pick

    Tax on overseas property – Which?

    April 5, 2025

    Cook County property tax bills up 78% as values rise 7%

    March 28, 2025

    La fintech reprend des couleurs au premier semestre, selon une étude

    July 1, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.