Blockchain Technology Hitting Hong Kong Market
With the emergence of Blockchain technology the exchange operator system along with global financial economy is going through a new phase of evolution. Hong Kong companies are showing a special interest in blockchain because of its varied impact on global infrastructure and financial sector. Elucidating non-financial problems like simplifying loyalty scheme, decentralising versions of Airbnb and liberating companies off Facebook log-ins is accelerating the popularity of blockchain in Hong Kong market.
What is blockchain ?
A blockchain is basically a distributed database that is in the form a digital ledger showcasing all agreements, transactions, contracts or any independent event hardened against alteration and tampering. Not only eradication of third party need and decentralisation of technology is provided by blockchain, but recording loyalty points, rent accommodation payment and severing Facebook log-in ties are also adding to its reputation.
Bitcoin exchangers are now extending blockchain solution consultancy to help companies choose tools based on blockchain technology.
Block money-laundering with Blockchain:
Hong Kong market regulators claim that blockchain being a distributed public ledger reduces fraud and duplication risks and can be even applied to prevent cases of money laundering. Benedicte Nolens of Hong Kong Security and Future Commissions claimed Blockchain can be employed to strengthen Know Your Customer (KYC) regulations by reduction of errors through automation, removal of duplication and creation of check databases for each client. The adoption of virtual currency Bitcoin which is a manifestation of Blockchain technology can successfully avoid suspicious transactions and lower transaction costs.
Bitcoin declaring cashless revolution:
Digital wallets and digital payments are gaining skyrocketing popularity and Bitcoin is the catalyst of the process. Blockchain feature of built-in cryptography enhances the reliability by distributing copies of same data to multiple parties while guaranteeing consensus. The use of a cryptographic key to access apartments and cars has scopes of being heartily accepted by customers because of its ease and effectiveness and can endanger cash transactions. Blockchain with its automatic transactions replace document and data checking and efficiently handles current bank proceedings.
Hong Kong Blockchain confluence and changing face finance:
A spokesman of Hong Kong monetary authority claimed that Hong Kong is going explore blockchain application in finance sector and also possible regulatory implications in near future. Larry Salibra’s Blockchain project deals with backed identities which reduces company’s vulnerability by escalating social media independence. It establishes a pathway to access various services using exclusively one set of log in id and password in a way that the services won’t be aware of the customer’s log in. In that way reliance on the company server can be eliminated.
Hong Kong is following People’s Bank of China and Bank of England’s interest in Blockchain technology and once it gains impetus financial sector of Hong Kong will undergo through major changes.