A blockchain is a time stamped series of data which is managed and distributed by computers. Whereas, fintech is a program or any type of technology that is used to enable or support financial or banking services. Although Blockchain plays an important role in Fintech innovations, it cannot be called the same thing, but a factor within a larger equation.
Blockchain was originally made with crypto currencies applications, in order to solve the issue of ‘double spending’. Due to the system’s great capabilities and nature, it has shown any good opportunities, other than finance. It can be used in different industries and has the ability of improving the conditions of any department of your company. Blockchain is a distributed ledger and functions openly. It records transactions between the parties involved in a quick and efficient manner.
On the other hand, Fintech, an abbreviation for Financial Technology, is an innovative and new approach that disrupts traditional style of financial services. Fintech consists of startups and established businesses that are aiming to modify and enhance the services they are currently providing. This approach serves the purpose of creating and redefining new processes, applications, business and product models.
It faces many challenges in the financial area, as it is seen from a negative perspective by financial regulators like governments and banks. This approach focuses more on the accessibility of its service for the general public. Proof Systems is a business that understands blockchain, fintech and crypto unlike other agencies. The best application of blockchain is its ability to disrupt payments for customers and banks. Whereas, Fintech has added Chatbots to their services, like; Ai and machine learning.
Conclusively, it has been proven through these points that Fintech and Blockchain are two different approaches, which work together in the financial sector of the market.