Real-world finance needs an upgrade and regular banking is also taking a lot of steps towards using blockchain technology for their operations. Some banks have tied up with Ripple and have been able to provide country-to-country transactions seamlessly. Earlier things used to take a lot of days and now with the help of blockchain, transactions are much faster and better.
Understanding the regulations
Regulation is one of the biggest challenges in the real world. It can differ from one country to another and it can be hard to have a common regulation. In such cases, it is important to definite a regulation and ensure all the rules are met regarding integrations.
Choosing the right blockchain
Features provided by one blockchain can differ from another blockchain. Choosing the right blockchain is important because we have to define our needs and work based on our needs.
Building scalable solutions
The solution that we take should be scalable. The financial transactions are usually huge and there should be a facility in the blockchain to view the historical data. Some blockchains struggle to provide historical data in the format that the user needs.
Need for smart contracts and tokenization
Executing some financial transactions needs a smart contract. Especially when we are talking about the advantages that blockchain brings and decentralization, it is important to use smart contracts to do this. Tokenization is another thing that helps in adding additional features based on our needs.
Preventing Anti-Money Laundering with KYC
When blockchain is used in real-world finance, there are also many illegal transactions happening and people use blockchain for doing those transactions. There has to be a proper way to do things with KYC and prevention against AML. Just because it is convenient it shouldn't be comfortable to move funds from one country to another through illegal means.
Integrations with existing payment gateways
There are several existing payment gateways available that support multi-country currencies and at the same time, they are convenient for the users. If we talk about blockchain integration then the existing payment gateways should also be an option where people can choose to pay through a blockchain and fees should also be handled.
Providing proper APIs
One thing that banks currently lag on is the part where they are not fully online yet with all the features. Blockchain is a next-level technology for them and integrating it with blockchain will need a lot of proper APIs available for others to consume to check the data and integrate.
Educating users and improving user experience
Last but last least the important thing here is to make sure the users are comfortable with all these features. Having so many fancy features that are difficult for customers is also not good. All these new features should be convincing for the users and also usable for them. If there is enough educational material available and if users find it easier to use, it is a win-win and we will also be advancing in terms of technology.
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