Blockchain consulting company BlockchainArmy\u2019s Chairman and Co-founder Erol User moderated a panel on Blockchain at the Bosphorous Summit in Istanbul, Turkey. One of the participants, Mark Mobius, an emerging markets fund manager and founder of Mobius Capital Partners LLP, showered praise on Erol User. The other panelists included Coinarmy CEO Peter Von Dam, UN Blockchain Expert Professor Massimo Buonomo, and Chairman of Microfund Foundation Professor Aziz Akgul. After the panelists had concluded their deliberations, Erol User gave an insightful speech on how the blockchain technology could revolutionize the financial sector.\r\n\r\n\r\nProblems of Financial Sector:\r\nThe financial sector is plagued with delays, high costs, and cumbersome paperwork. The repetitive paperwork exposes it to fraud. 45% of financial intermediaries have instances of financial crime every year. Out of this, 37% impact the common man, 20% occur in professional services, and 27% in technology.\r\nGrowth of Blockchain:\r\nIt is estimated that blockchain could cut infrastructure costs in the banking sector, and security trading on the blockchain could go up to $15-20 billion by 2022.\r\nAreas of Interest for Blockchain:\r\n1. Fraud Reduction:\r\n\r\nIn the banking system, all data is centralized, which attracts hackers. Blockchain is a decentralized distributed ledger system, where multiple validators validate each transaction and prevent hacking & fraud.\r\n\r\n2. Know Your Customer (KYC):\r\n\r\nThough KYC norms are standardized, each bank collects and stores KYC records separately. With Blockchain, a single record of KYC data can be stored in one place. All banks can check and verify any user\u2019s KYC credentials on the blockchain. A single KYC record reduces duplication and increases transparency. Data recorded on a blockchain cannot be erased or changed.\r\n\r\n3. Trading Solutions:\r\n\r\nThe ASE and NASDAQ are exploring use cases for blockchain technology as its P2P model cuts out intermediaries, which increases transaction speeds and reduces the cost of transactions.\r\n\r\n4. Insurance:\r\n\r\nSmart contracts can be written on a blockchain for documentation of different functions like premium payment, filing claims, etc. This smart contract will execute once all the required conditions are met. The user can check on the blockchain to see the progress of his claim. A single record of documentation is visible to the insurance company and the applicant. It increases transparency.\r\n\r\n\r\nBlockchain Technology is the Future:\r\nBlockchain-related jobs have tripled on LinkedIn between 2017 and 2019. In 2019, $ 2.1 billion has been spent globally on developing blockchain solutions. Kevin Sherman noted that blockchain combines safety and security with faster and cheaper transactions.\r\nBenefits of Blockchain:\r\n1. Cheaper Banking:\r\n\r\nWith blockchain technology, parties on two sides of a transaction can execute the transaction on the blockchain and make payments instantaneously as no physical movement of fiat currency is required.\r\n\r\n2. Instant Settlements:\r\n\r\nSpot trading transactions take several days to settle. A blockchain can ensure instant settlements of spot trades as blockchain creates a P2P network that cuts out all intermediaries.\r\n\r\n3. Optimized Usage of Capital:\r\n\r\nBlockchain is a decentralized P2P technology, removes banks, credit cards, and other intermediaries, which reduce the cost of transactions.\r\n\r\n4. Improved Adherence to Terms of Contract:\r\n\r\nSmart contracts will make the whole system of filing and claiming transparent, which will reduce the chances of financial firms delaying payments, even after a customer has met all the requirements.\r\n\r\n5. Range of Financial Solutions:\r\n\r\nAs each cryptocurrency token is priced differently, it is possible to create financial products to cater to a range of industries.\r\nConclusion:\r\nBlockchain technology can bring down infrastructure costs and bring transparency to the financial sector. Due to its immense potential, there is enthusiasm among the financial institutions for blockchain.