How Blockchain is Shaping the Future of Finance

What’s a Blockchain?

A blockchain is a digital and decentralized ledger that contains data that is stored as a list of records, called blocks. These blocks link to one another in a chain through the use of cryptographic algorithms. From a simpler viewpoint, the blockchain can be seen as a layer of the internet that allows for secure records to be kept and trusted transactions to occur.

How Decentralization Amplifies Security

By design, the blockchain provides several advanced layers of security that strongly outperform more traditional cybersecurity systems. The use of cryptographic algorithms converts any input fed to the blockchain into a unique encrypted output of a fixed length that cannot be reverted to its original state. This public key cryptography method allows for the management of users’ identities, while still preserving their anonymity. Put differently, the technology enables people to prove who they are without the need for public disclosure.

Transparency Through Disintermediation

In the blockchain, every user owns their data. This is novel in comparison to traditional third-party transactions, where all transactional operations require a level of trust regarding the institutions’ ability to ensure their security and validity. The intermediary structure also entails that the middlemen possess all corresponding data, at least temporarily, which strengthens their position although they are rarely the most significant actors in the value chain.

Streamlining with Smart Contract Automatization

When parties sign contracts, they need to be able to specify conditions. The use of smart contracts makes it so that users can flexibly interact with the blockchain. Smart contracts are self-executed codes that offer the ability to define the procedure or the steps and the outcome of a process when some particular events or conditions occur.

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Liti Capital SA

Liti Capital SA

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Liti Capital SA is a fintech private equity company on the blockchain, providing a complete solution of strategy, case management and litigation financing.