With the digital technologies dominating in almost every industrial sector in the 21st century, the banking and financial sector is not an exception. But, the question is: How fast is the banking sector able to catch up with the latest advancements in technology? When compared with other industries, the banking and financial sector is getting digitized only at a slow speed because it still runs on the traditional centralized system which is controlled by only a few players.
Why the banking & financial sector still needs to be centralized when we are living in a digital world of fast transmission speeds, cloud computing and more? That’s a brilliant question. Very soon, the banking industry will be experiencing the most innovative revolution of this century which will completely disrupt the traditional banking & financial services. And, that concept is called Distributed Banking System which will clearly emerge as the banking solution of the next generation.
What is Distributed Banking? At present, the individual clients/companies need to depend on only few banking & other financial institutions to meet their financial needs. However, a distributed banking system will allow a large number of financial institutions to enter the market.
This will result in competitive prices for all the financial based services and provides more benefits to the clients. Plus, the distributed banking will build a new P2P (Peer-to-Peer) communication model across many sectors, regions, accounts, and subjects. Simply, the distributed banking system will completely eliminate the intermediary by replacing the tree-like structure of the existing banking system with a flat structure.
As a first step towards that revolution, a new blockchain based system namely DCC (Distributed Credit Chain) will be launched. Because it utilizes the blockchain technology for making the financial transactions, the credit data and transactions cannot be altered/deleted and become immutable. Also, the whole transaction process will be completely encrypted to prevent the data from getting intercepted. To learn more information about the platform, please visit http://dcc.finance/file/DCCwhitepaper.pdf
Even though it may 5 to 10 years to fully replace the traditional banking with the distributed banking system, it is considered as an important node of new finance because it provides the following benefits:
- Eliminate the existing monopoly by few financial institutions
- Decentralized P2P financial service to all
- Establish distributed standards for various businesses
- Provide equal returns to all the players
The concept of DCC can be used for different areas in the financial sector like mortgages, asset distribution, consumption loans and more. As DCC is based on an open-source strategy, every financial institution has the flexibility to create their own smart contracts and develop the DApps based on their requirements. DCC will be establishing a new type of user account system based on the DCCID.
The DCCID is a decentralized id and will ensure that all the transactions carried out using the id are secure and no information can be modified or tampered in any way.
Sounds interesting? Read more at http://dcc.finance/ to learn more about the disrupting technology and follow the Telegram channel.