Businesses heavily rely on advanced data analytics and forecasting methods. Financial Investors use the data to find patterns about stock prices and understand the trend of market movement.
The Blockchain Distribute Ledger System (DLS) can significantly speed things up and reduce errors in sampling and modeling techniques Stockbrokers would find the application of blockchain to their domain very useful.
Some of the benefits of Blockchain for market data providers are covered here.
Transactions take days and weeks on the existing platforms due to cross-checking and verification between various stakeholders. A Blockchain based verification system would take less than minutes. Allowing parties to deal directly with one another could significantly enhance processing speeds.
Blockchain protocol is designed to keep a complete record of all the transactions that are executed on the ledger. This makes the audit process for the connected banks and institutes far easier and gives much greater transparency to the platform. Greater transparency would help build trust on the financial records.
Blockchain would drastically reduce risks for different stakeholders as transactions can be completed instantly. This would lower the chances that one party would default on meeting its obligation.
Effective Capital Management
Transactions on blockchain are very secure and can be trusted for reliability. Blockchain application in the financial services industry would remove the need for middlemen such as banking intermediaries. This would reduce interest and commission payments for investors while giving them more control over their capital.
Real estate and consumer retail are two industries that are highly dependent on market data gathering. A Blockchain based platform offers benefits to both industries.
Retail Consumer Data
If you are a regular shopper at larger retail stores you must have come across the loyalty and discount cards. These cards are advertised to help customers save them money on their shopping.
What many people may not be aware of is how these cards operate.
Loyalty cards are developed by data mining firms to create a record of the purchasing habits of shoppers. This data is used by marketers to make sense of the trends in the market and design promotional campaigns, determine prices and target customers better.
Banks have also starting using the method and create a record of their account holders’ transaction history. Telecom businesses similarly build and maintain a database of their subscriber’s cell phone usage to send out new deals and offers.
A Blockchain based platform lets data mining firms customize the information that their subscribers want to share with businesses. People are more willing to share their information when they have some authority over what information gets shared with marketers.
Real Estate Application
Investors, lenders, borrowers and realtors can all benefit from a Blockchain based lending platform.
Investors connected to the platform would be able to access liquid, collateralized securities that can be sold easily. Since the Blockchain is openly accessible and leaves a trail, investors can freely audit the record and feel more confident in the system.
A Blockchain platform makes it easier for lenders to quickly find borrowers looking to refinance their mortgage. The database would also allow lenders to find investors to offer packaged securities once the loan has been finalized.
This system would benefit the borrower by helping them find better interest rates and terms of payment. It would give borrowers access to lenders from different states, even from other countries who may be offering better terms.