Hive Inside Traditional Banking Systems
Hive has two exciting features that make it a valuable source of money transfer in the banking industry. Hive has meager fees for transferring the money from one bank to another internally and externally. In the Hive case, you may also find that speed is reasonable compared to even the typical popular cryptocurrencies like Bitcoin and Ethereum. Though banks are pushing for the Stellar Lumens and the XRP, however, those systems are centralized and are open to scams.
So how can Hive be adopted by the traditional bankers or the systems? How would traditional banks benefit from the low-cost and fast-speed Hive blockchain? How can they use it while making the data private and using the blockchain for the transactions? Most of our concern is how the industry can use the Hive while keeping the content aspect away from everyday usage. So this post is about how this would be possible in execution.
Let us discuss how the Hive can benefit the financial and banking sectors.
Hive as SWIFT Payment Alternative
SWIFT has been the most used payment network around the world. The thing is that system has many loopholes, and also, political control has been done to use there. Some of the time, the SWIFT payment has excellent usage, but the thing is that we need to find a payment alternative. SWIFT is a sound system nonetheless, but it is not something we can have control and influence on political ways for combating the sanctions.
Hive is a good solution in this case because that transaction privacy and speed can be easily managed there. Banking requires something that does not get controlled by NATO or the US-based organizations that want to control the payment system for their gains. Hive is not something they can control using their political influence. In this case, the Hive needs to watch out that it does not have political leaning on the blockchain level.
Private Hive Fork for Banking Transactions
Keeping the banking transaction on the current public chain may not be the thing. You may have to fork it on the personal level with the banking needs as required. Because as it is current state, putting those details on the public chain may not be a good option. In that case, the fork of the Hive and its potential changes can be a good option for banks and any other banking type of entities. That you may easily find.
Most private chains make use of those IBM-based frameworks like Aries etc. However, many public chain codes are being forked and turned into private chains these days. Moreover, that is being developed. So the people in the process of banking or cross-border transactions should consider private to have more control over the chain.
I feel the mutual funds, bonds, and bank deposits will likely be put onto the blockchain data. This can be a good option for anyone to make a fork for their specific bank and keep it as data. Moreover, considering it would be on the blockchain, this would be safe and transparent for data.
Non-USD Dependency for International Transfers
USD as a reserve for the world has cost many nations bankruptcy times. You may notice that Sri Lanka and many other nations will be at the edge of bankruptcy. So something needs a change. I have realized that international transfers will be changing their direction and will be less dependent on USD shortly. So they may need some crypto reserve or some other nation's reserve.
In that case, Hive can be a good option for them to have a private chain where they can keep track of the non-USD reserve and put it on a chain for specific data reasons. So Hive has one more way for a use case like this. Many people are in the process of transferring value and currency in this case as well. So we have to consider that for the long-term plans.
Hive has more benefits in Finance Sector; what do you think?
I have yet to explore many other benefits of deploying the hive blockchain into the financial sector. I am sure many other use cases can make things a bit more useful in that context. So hopefully, you find this article helpful, and if yes, please let me know if you see the usefulness of Hive in use mentioned above case or any other use cases I have missed.
What do you think?
Posted Using LeoFinance Beta
