Today, the fintech industry is recognizing the positive impact of blockchain technology for reducing risks, generating more revenue, and improving the user experience. According to a report, the fintech blockchain market is expected to reach a valuation of $36 billion by 2028, a whopping 60% YoY growth.
The arrival of Web 3.0, the third generation of the internet, has been the single most important factor in blockchain technology’s growing role in the fintech industry. It has also enhanced the need of finding an experienced Web 3.0 Developer who has fulfill the special requirements with expertise.
For the uninitiated, Web 3.0 is the next phase of the internet, where it becomes decentralized and gives users complete ownership over their online data. Web 3.0’s peer-to-peer feature makes it easy to set up decentralized marketplaces and gets rid of the need for middlemen to connect buyers and sellers.
This latest iteration of the internet is already changing the fintech industry, creating a plethora of new applications for areas like payments, personal financing, supply chain & logistics, real estate, insurance, cross-border payments, and much more.
As per a report, the demand for decentralized banking grew by 1500% in 2021. It’s possible to integrate finance with Web 3.0, and a Web 3.0 Development Company can build a new financial system that is completely decentralized.
Let’s take a look at the sectors where blockchain and Web 3 Development are positively impacting the whole fintech industry.
1 : Banking
Firstly, the centralized payment systems are not efficient. There is a rising demand for faster, cheaper, more secure, and more compatible payment systems. According to a report, banks could save more than $10 billion by using blockchain technology and an experienced Web 3.0 Developer.
And finally, blockchain technology can provide access to banking services to more than 2.5 billion people around the world through their smartphones. Web 3.0 Development allows people to send and receive payments while also providing access to microcredit.
2 : Supply Chain and Logistics
Supply chains and logistics integrated with Web 3.0’s automation are extremely secure by nature. This is because Web 3.0 in logistics incorporates other technologies such as artificial intelligence and smart contracts written in Web 3.0-specific programming language.
A partnership between a seasoned Web 3.0 Development Company and blockchain technology in the supply chain reduce the financial losses from gray marketing while improving accuracy and providing high-level end-to-end tracking. It also allows for an audit trail of documents, thus keeping track of all sales and purchase orders, bills of lading, manufacturing configurations, quality assurance, and other important supply chain reports.
3 : Insurance
There is a huge opportunity for the insurance sector to adopt and transform itself using Web 3.0 Development Services. This is because there is a potential for businesses to provide insurance to both the Web 3.0 economy and the traditional economy. For instance, insurance can be sold for theft insurance for crypto exchanges, as well as travel insurance can be custom-built using smart contracts.
Web 3.0 can make existing insurance products faster, cheaper, and better. Nexus Mutual is one such decentralized insurance provider that provides coverage against smart contract failures and exchange hacks.
4 : Real Estate
Using Web 3 Development skills in the real estate industry eliminates the inaccuracies and delays that plagued the industry while making transactions much quicker and more accurate. It reduces the need for middlemen in property deals, such as real estate agents, lawyers, and banks.
Apart from this, there are many potential uses and applications for Web 3.0 in the real estate industry, such as property ownership through NFTs, fractionalized investments in property, loan and mortgage securitization, buying virtual real estate in the metaverse, and much more.
5 : Stock Markets
Blockchain technology and Web 3.0 Development in trading allow traders to escape the process of three-day settlements, all while saving on brokerage fees. Buying stocks through dApps reduces the risks associated with brokers, speeds up the entire selling and purchasing of stocks, and enhances trade accuracy.
Autonio Foundation is one such start-up that offers AI-based crypto trading and allows automated sales and purchases of stocks and cryptos.
6 : Personal Financing
Blockchain introduces an efficient and transparent borrowing and lending process in the fintech industry. The borrowers use their crypto assets as collateral to obtain loans, while lenders give them loans at agreed-upon interest rates. It is estimated that more than $4 billion in crypto loans have been issued to date, and this number is expected to rise in 2023.
The fintech industry is evolving towards decentralization, and fintech applications are taking the industry by storm. It can easily be said that not just in banking and financing, but Web 3.0 is transforming non-banking financial services like insurance, real estate, supply chain & logistics, wealth management, and many more.
It is for this reason that financial institutions should integrate and leverage blockchain technology and Web 3.0 Development into their businesses to them more productive and provide more value to their customers.
Antier is the world’s best Web 3.0 Development Company that can help you build your fintech application by providing services like cryptocurrency exchange development, wallet development, ICO development, ICO marketing, STO development, new coin development, and more.
