Search
Recent News

Articles

thefintech.info

WHAT ARE THE DIFFERENT LAYERS OF BLOCKCHAIN TECHNOLOGY?

In 2021, US$6.6 billion has been spent on blockchain solutions. This technology not only underpins the global cryptocurrency market, but also provides unique utility to other industries, such as healthcare, logistics, and real estate.

Blockchain is a decentralized digital ledger made up of blocks that store data on a peer-to-peer (P2P) network. Once the information is stored on this ledger, it is virtually impossible to delete, modify and hack it. It is this unique feature of blockchain that has inspired many people to start their own blockchain-based businesses. But before thinking about how you can use blockchain in your business, it’s important to understand how it works. Let’s take a look at the different layers of blockchain technology to get the most out of what it has to offer.

Understanding the blockchain

There are two methods to comprehend blockchain technology, which is vital to keep in mind when discussing the levels of the blockchain. Understanding blockchain architecture is the first step. The hardware layer, the data layer, the network layer, the consensus layer, and the application layer are the five layers that makeup blockchain technology.

The second is the blockchain network’s split based on protocol. A network’s collection of rules is referred to as a protocol. There are four layers in the blockchain protocol: Layer 0, Layer 1, Layer 2, and Layer 3. Let’s examine each of these categories in turn.

1. Blockchain architecture

The hardware layer

Hardware components including network connections, network computers, and data servers make up the first layer of the blockchain. Data servers house the data that is kept inside a blockchain, and computers connected to the blockchain network can exchange this data. As a result, a P2P network is developed in which each network node (or computer) independently verifies the information.

The data layer

The second layer of this house is the data layer, which manages the information stored on the network. This layer is made up of blocks of information, each of which is connected to the previous layer. The only block that is not connected to another block is the genesis block (the first block in the network).

Each transaction written on these blocks is protected with a private and public key. A private key is an electronic signature known only to the owner to authorize a transaction; The public key is used to verify who signed the transaction. Simply put, if someone sends you cryptocurrency, they will need to know your public key; In order for you to receive crypto, you must use your private key to verify the transaction and prove your ownership of your blockchain wallet.

The network layer

This layer makes it easier for nodes in the blockchain network to communicate with one another. Additionally, blocks are created and uploaded to the blockchain in this layer. This layer is also known as the propagation layer as a result.

The consensus layer

This layer makes ensuring that the network’s rules are upheld consistently throughout the network. To add a transaction to the blockchain, all nodes in the network must concur on it; one node cannot simply do this. The likelihood of fraudulent transactions being added to the blockchain is reduced by this level of verification.

The application layer

This layer makes it easier to use the blockchain for many different things. Smart contracts and decentralized applications make up it (DApps). This layer serves as the blockchain’s user interface and is basically what a user would run into when interacting with a blockchain network.

2. Blockchain protocol

Layer 0

The network hardware, including the internet and any connected devices, coexists at layer zero. It serves as the base upon which the additional layers are erected.

Layer 1

The various transaction-processing blockchains (including Bitcoin, Ethereum, and Binance Smart Chain) make up the protocol’s initial layer. This layer of the protocol, which includes several consensus techniques like proof of work and proof of stake, protects the security of the blockchain.

Layer 2

The execution layer is another name for this layer. The volume of transactions carried out on a blockchain rises as it gets bigger. We require scalable (able to manage the increasing load) Layer 2 solutions to accommodate the increased number of transactions. The initial layer of the protocol’s problems is frequently solved via off-chain (or third-party) solutions. These techniques enhance rather than diminish the initial layer’s features.

Layer 3

The blockchain protocol’s application layer is represented by this. It consists of the various decentralized autonomous organizations (DAOs) and blockchain-based applications (Dapps) that are currently available on the market, such as Decentraland and CryptoKitties.

Read More
thefintech.info

HOW IS FINTECH SHAPING THE REMITTANCE INDUSTRY?

As the world becomes more connected than ever, money is rapidly becoming borderless. The rise of migration, coupled with the expansion of trade around the world, has fueled the enormous movement of money across borders – and much of this is remittances. Remittances often flow from developed to developing economies as migrant workers send money back to their families back home.

Remittances are so important that in recent years they have contributed more to the economies of some countries than foreign aid.

Data released by the World Bank in 2018 shows that remittance flows to low- and middle-income countries hit an all-time high of $529 billion, the result of exciting innovations for allows sending and receiving remittance payments globally.

Remittances: an industry in motion

While there have been some interesting recent developments in the remittance industry, the process needs to become fairer.

The costs incurred are often very high. In fact, in 2021, the World Bank reported an average cost of €6.38 for funds sent, which significantly reduces the purchasing power of the recipient. This is too high a rate, especially because it is more and more common for low-income workers to repatriate money.

Finally, some premium options appear. We have seen the immediate impact of alternative assets like cryptocurrencies reshaping the remittance industry. Due to its borderless nature, it has helped to facilitate fast transactions and reduce cross-border remittance fees. Digital currencies – including Bitcoin, Dash and Cardano – can be sent abroad at a fraction of the cost and time compared to what is offered traditionally. At the heart of improving the remittance industry is the implementation of the underlying blockchain technology – and the benefits cannot be underestimated. Blockchain can be used in many ways to seamlessly transfer ownership of crypto assets from one person to another. It allows peer-to-peer transactions without an intermediary, which often increases transaction costs and time.

New technologies will continue to provide a much-needed modern resource into a relatively backward industry, facilitating high-speed, high-speed transfers with no hidden fees. Existing market leaders like Western Union will struggle to keep up with what this evolving technology has to offer.

Unlocking the potential of emerging economies

For many developing countries, the remittance industry plays an important role in contributing to the health and growth potential of the economy. One report indicates that remittances are equivalent to more than 10% of the GDP of developing economies in a year. Once the money is in the country, it will boost national economic growth.

Perhaps the most important contribution of remittances to a developing economy is the provision of capital for start-ups. With higher disposable income in hand, recipients can pursue entrepreneurial ventures that enable developing economies to benefit from increased employment opportunities, increased competition, and increased innovation. and entrepreneurship. Remittances can also help countries achieve the 17 Sustainable Development Goals (SDGs) set out by the United Nations in 2015, at both the household and community levels. In the past, remittances contributed up to 60% of the recipient’s family income, providing many benefits in the future, and contributing to the achievement of SDG goals. This includes reducing the depth and severity of poverty, improving health and well-being, and providing quality education.

At the community level, it also stimulates progress. For example, remittances are more often used to improve homes than to buy homes, which means households have better access to affordable and clean energy. Furthermore, as families increase their ability to shop, communities change their consumption patterns, which in most cases leads to responsible consumption and production.

Remittances can therefore act as the backbone for the development of emerging economies at the national, community and household levels.

A fairer and more transparent future

We’ve seen fintech startups looking to capitalize on a booming opportunity in the remittance industry. Addressing unfair practices in the money transfer industry – such as high costs and hidden fees – will allow those who need it most to keep their hard-earned money. Increased competition in the remittance industry should be seen as a positive – it forces companies to offer fairer services, at lower rates.

Not only can it provide better solutions for users to transfer money, but it also offers lucrative business opportunities with plenty of space for disruptive and innovative businesses to create a conversion effect.

The use of blockchain technology in the remittance industry has certainly pushed the industry in the right direction – and in the years to come it will encourage a fairer, safer and more transparent alternative to what is currently available. currently available in the market.

Read More
thefintech.info

HOW THE MODERN CFO CAN LEAD TECHNOLOGY TRANSFORMATIONS?

Environmental concerns, economic uncertainty, the cost of living crisis and global trade issues are just a few of the macro issues facing businesses today. In this uncertain environment, the challenges faced by CFOs are constantly changing and so is the need for the best methods and tools to help finance teams be more agile.

Old-fashioned manual processes are no longer enough, and companies need to embrace technologies that provide a more accurate picture of the business to help make more reliable future predictions. CFOs are best positioned to harness the power of greater insight, informed forecasting, and strategic thinking – enabling businesses to manage and succeed in the face of unexpected change and provide a competitive advantage in times of uncertainty.

How the role of the CFO has changed

Over the past few years, we’ve seen the need for many businesses to go digital at scale, not just to keep the lights on, but to survive. However, digital transformation is not just about moving to the cloud or overhauling IT systems, it is about integrating technology into strategic discussions and processes throughout the organization. For finance leaders, this means moving away from manual processes and adopting financial automation – freeing up teams to spend more time on strategic tasks, but also empowering Get access to real-time data and gain visibility and control – all improving the bottom line.

Gone are the days when a CFO’s job was to be responsible for managing the finance and accounting departments of a company. Today, he wears hats more than ever. But as businesses navigate murky waters, it is essential for future-minded CFOs to harness technology to better prepare for the potential challenges of today and tomorrow.

Technology is allowing CFOs to do more

Traditionally, manual methods of managing business expenses have been frustrating and time-consuming. This can involve manual spreadsheet updates, email exchanges, and lengthy month-end adjustments. Paper invoices can be manually collected and checked before being stored in a filing cabinet. And when it comes to expenses, corporate cards can be shared among individuals, or employees can be asked to pay for meals or fuel before claiming a refund. These old data collection methods are unreliable and may produce incomplete or erroneous data. When this happens, it is difficult for finance teams to make an accurate assessment or adapt to new needs when conditions inevitably change.

In addition, tedious manual and administrative tasks are often repetitive and can make the most promising positions unsatisfying and frustrating. By adopting technologies such as cost management tools, unnecessary administrative work can be eliminated, making work more enjoyable and fulfilling as employees can focus on their work. creativity and strategy.

Unlocking a treasure trove of data

Enterprise-wide spending visibility and control are more important than ever as CFOs tighten their wallets in today’s economic landscape. CFOs need to understand spending in real time because they can no longer wait until the end of the month to realize cash in and out. Soldo’s expense management platform provides a deep dashboard – unlocking quick, data-rich reports without the risk of errors, repeat entries or data gaps – for managers Financial managers can be more confident to take action backed by clear decisions. As a result, the finance team can better control how a company’s money is spent while providing more strategic insight and more informed forecasting for other areas of the business. Together with these easy-to-use mobile apps for employees to file expenses, it reduces manual processing time and errors.

The businesses that succeed in today’s environment are those that use the right tools to maximize people’s time and productivity so they can be as productive as possible. Freeing financial teams from tedious data entry not only achieves nirvana but also provides full visibility to financial managers, enabling greater adaptability than ever before. With effective tools and practices provided, CFOs can not only overcome the series of challenges that continue to plague today’s uncertainties but also build business resilience through financial oversight. more effectively.

Read More
thefintech.info

5 TIPS FOR PROTECTING YOUR FINTECH DATA ASSETS

Nasdaq’s automated quotes in the mid-1970s and online shopping in the mid-1980s were disruptive technologies for the financial industry. The latest disruptive fintech innovation, cryptocurrency, is gaining popularity with consumers, businesses, and government agencies. Large corporations and governments are particularly interested in the underlying technology of cryptocurrencies known as the blockchain. In fact, many organizations have launched initiatives to test the feasibility of using blockchain to facilitate accurate, fast, and secure transactions.

The Latest Disruptive Technology in Fintech

Cryptocurrencies’ future is unclear, but prior performance suggests that the high-tech financial instrument has a promising future. As an illustration, the price of a single Bitcoin increased from $280 in 2015 to $1,000 in just two years, and by the end of 2017, it had skyrocketed to an incredible $17,000 per coin.

Cybercriminals, who perceive a growing market with widespread security faults, are also becoming interested in money. The passages that follow offer 5 practical suggestions to help bitcoin owners safeguard their fintech and data assets.

Tip 1: Don’t Provide Your Private Information in Public Forums

Cybercriminals often use the method of phone porting. Hackers hide on social media sites where cryptocurrency users may post personal data, including their phone numbers and email addresses, in order to interact with other users. The hacker calls the unwitting investor’s phone service provider after locating their target, pretends to be a victim, and has the number moved to a mobile device in their hands. Now the hacker has access to the victim’s bitcoin exchange account, can change the password, and can make off with any money they want. Hackers can quickly steal thousands of dollars using this technique.

Tip 2: Make It Harder for Hackers to Hijack Your Account

Dan Romero, vice president of operations at cryptocurrency exchange Coinbase, suggests disabling SMS account recovery as an additional safeguard against phone porting attempts. In order to transmit money out of the exchange, he also advises using a coin vault and turning on two-factor verification. Romero advises against discussing cryptocurrency in public, particularly online where anyone can steal from an investor. Adding an account passcode and seeking a “do not port” order for your phone are two further security measures you should take with your cell phone service provider. Finally, although cryptocurrency exchanges take security seriously, the operations VP cautions that they should not be viewed like banks because they are not.

Tip 3: Don’t Put All of Your Crypto Eggs in One Basket

Internet security expert Sanjay Beri advises diversifying digital financial holdings among a number of exchanges to minimize investor risk in the case of a hack for the best safety of your fintech assets. Additionally, the security expert advises investors to keep their money offline in a cold wallet. This restricts hackers’ ability to access money held by investors. Beri advises using a different hot wallet for daily purchases. The security expert explains that, in essence, a hot wallet is similar to a checking account and a cold wallet is similar to a savings account.

Tip 4: Exchange Your Currency With Caution

Amir Bandeali, the chief technology officer and founder of 0x (zero-x), advises cryptocurrency investors to only use centralized exchanges if they conduct several transactions, and to stay with decentralized exchanges when trading tokens on platforms like Ethereum. He argues that the main distinction between the two is that decentralized exchanges don’t hold users’ bitcoin. There is no method for a hacker to access an investor’s funds unless they are able to obtain the user’s private key.

Tip 5: Don’t Forget the Basics

While using the most basic security measures may seem like a no-brainer, many investors fall prey to hackers because they neglect to follow basic security measures. For example, crypto investors must create a separate account for each exchange. That way, if a hacker gains access to an account, they won’t be able to break in and gain access to other sensitive assets. In addition, investors should use strong passwords for their accounts and secure them in hard copy and only the account holder has access to the hardcopy password list.

The most aggressive hackers will not stop looking for cryptocurrency mining operations. To ensure the security of this powerful new financial instrument, the cryptocurrency market needs highly qualified professionals who can help investors prevent unauthorized access to their accounts. . As the popularity of cryptocurrencies increases, so will the need for cybersecurity professionals who can prevent attacks from persistent cyberattacks.

Read More
thefintech.info

9 THINGS TO CONSIDER WHEN INTEGRATING A PAYMENT GATEWAY INTO YOUR MOBILE APP

People increasingly look forward to paying various suppliers thanks to the use of mobile phones and numerous applications. Integrating a payment gateway is crucial if you want to create financial eCommerce software that will increase sales and enhance user experience. According to statistics, 73% of all mobile phone users have made a transaction and paid using their phones.

Additionally, if the checkout process is too challenging, 1 out of 5 users leave the app before finishing the purchase. However, in order to incorporate a mobile payment gateway into your application, you must make sure it functions properly and that you adhere to certain guidelines. You’ll discover some key ideas to think about in this blog.

What is a Mobile Payment Gateway?

A tool or procedure known as mobile payment gateway integration software enables buyers and sellers to conduct transactions on their applications easily and quickly. Users who integrate a mobile gateway onto their application can accept payments online.

Some of the important participants involved in the payment process through the payment gateway are the following:

The issuing bank: checks whether the buyer has the minimum required balance to make a purchase or not.

The merchant bank: checks whether the merchant has received the payment or not.

An international payment system that checks if someone is doing valid international transactions or not. Based on this it accepts and rejects the transactions.

You can enable the payment gateway and allow your customers to make payments through debit cards, credit cards, bank transfers, local pay, or wallets.

Some of the Popular Payment Gateway Providers are as follows:

  • PayPal

It is one of the best-known payment services which is quite easy to integrate and secure. It is used in more than 200 countries. PayPal is responsible to record all the transactions and help you to use monitoring invoices to ensure that your payments are sent at the right time.

  • Stripe

Stripe is currently available in only 46 countries. Users can use it to manage their online payments and make global payments. As per the official documentation, it supports over 135 currencies and multiple payment methods such as subscription billing, one-click checkout, and mobile payments.

  • Authorise.net

It is quite the oldest payment gateway among all others. It has listed over 430k merchants in different countries like Europe, the UK, Canada, and the USA. As per the statistics, it has managed over 1 million transactions every year. Also, it has partnered with the most popular companies that offer merchant accounts to accept payments from debit cards, credit cards, and much more.

Top 9 Points to Consider while Integrating the Payment Gateway into your Application

1. Understand your Market

Understanding your market’s needs and how specific locations handle mobile application payments is crucial. For instance, while Canadians in Canada use their bank account or bank card to make payments, Americans prefer to use their credit card or debit card on payment portals. It relies on geographical areas and their financial laws and regulations. You can conduct research and select the best payment gateway for your solution based on these two criteria.

2. User Interface Customization

You can change the UI based on the payment tool you want to incorporate. Make sure the design is simple to understand as you create the user interface for the payment services. It should also have a very organic and harmonious appearance. Simply put, you must pick a payment gateway that enables you to modify the user interface. You could, for instance, redesign the payment forms so that anyone can use them, regardless of their level of technical proficiency.

3. Look for the Extra Features

You might be able to incorporate a few extra features into your application. For instance, cryptocurrencies like bitcoin are now extremely well-known. As a result, you may include some extra features, such as enabling cryptocurrency payments. But in order to avoid any problems, it is imperative that you consider all the legal aspects of this.

4. Ensure that all the Security Measures are Taken Properly

Since people would be making payments using their credit or debit cards. Therefore, you must make sure that you perform a thorough security assessment before you publish the payment app. Some security guidelines, like PCI-DSS, should be strictly adhered to. This standard was established expressly to make sure that all financial apps are made with security concerns fully taken care of.

5. Provide all the Information of the Buyers

It is crucial that you include all relevant information regarding the payment procedure at each step. Additionally, be careful to convey all information on the authorization and verification processes, which may require some time. Therefore, thoroughly research how a mobile application payment gateway would share all of the user’s information with them before selecting one. Based on that, you can integrate contact support, attempt a later payment, and, if users are unable to pay, select another payment gateway.

6. Consider the Reputation of all the Payment Gateways Companies

For any company, its reputation is quite essential because that tells you how its product is doing in the market. Some of the factors that you can consider while choosing a company are as follows.

  • How old is the company in the market?
  • What are the reviews and feedback from different clients of the company
  • Are there any famous or big clients of payment gateway that you want to integrate?

7. What Products do you want to Sell

Integrating payment processors like MasterCard, Visa, PayPal, or Stripe is highly advantageous if you wish to sell any tangible goods or services. However, if you wish to sell digital goods, you may quickly complete all of your transactions through the Google Play Store or the App Store. The Apple ID or Gmail would be used to create all of the transactions. You could try talking to the company that develops iOS apps for further information.

8. Should be Easy to Integrate

For developers, integrating a payment gateway should be simple and quick. Think about the SDK size as well while selecting a payment gateway. It should ideally take up less room on consumers’ mobile devices. Additionally, they have to support the coding environment and framework you use to create the application.

9. Kind of Merchant Account

There are many merchant accounts that can support and accommodate your company’s needs. Aggregated seller accounts and specialized seller accounts are the two types of merchant accounts that are used the most. Each of them has advantages and limits of its own. A specialized seller account will meet your needs if you wish to use a quicker fund transaction and have greater financial control. But the dedicated seller’s account is more expensive in terms of price.

Read More
thefintech.info

HOW OPEN BANKING KEEPS DATA SAFE WHEN USING IOT DEVICES?

Open banking has opened up new possibilities for financial services and technology, allowing businesses to tap into consumer data like never before. For example, third-party service providers can now access customer bank account information, account balances, financial history, and more. through the bank link and the consent of the customer.

Growth and enhancement through in-depth collaboration

By closely collaborating with open financial technology, the Internet of Things (IoT) could develop and improve, bringing new uses and benefits to consumers.

Consumers can access their financial information, such as bank balances, through wearable technology and AI assistants. They can also make requested and automated payments through IoT devices. Benefits also include the ability to conduct more thorough credit checks and submit insurance claims more easily.

Data safety and cybersecurity in open banking

Consumers frequently express worries and mistrust about data security and cybersecurity when it comes to any new fintech invention. Consumers frequently hold the opinion that traditional financial institutions are better suited than fintech to safeguard their data.

This is probably because people have been using the same security measures for years without really comprehending what they mean or what “open banking” actually means.

Open banking is as secure as ever and disseminating its data security procedures and guidelines across numerous IoT case cases.

Current data protection practices in IoT

The rise of IoT and smart technologies has led to a constant improvement in user experience through daily operations that seamlessly respond to user needs. However, in terms of security, IoT has been heavily criticized for its built-in security features, and it often depends on the security of the network to which the technology connects.

Data collected, stored, and shared by IoT devices must be protected under the General Data Protection Regulation (GDPR). GDPR refers to a legal framework that sets out guidelines for how data should be collected and protected.

It is an important requirement for IoT application providers to adopt GDPR-compliant data privacy and data protection measures to ensure the safety and protection of their users’ data and to ensure that embedded sensors do not collect more data than necessary.

IoT tech has the potential to be targeted with malicious intent

Like any other connected device, IoT technology has the potential to be targeted, exploited, and used for malicious purposes. For example, in 2020, a study by Palo Alto Networks found that 98% of IoT data traffic was logged as unencrypted.

A 2021 global survey by IT security firm Trend Micro found that 86% of IT professionals believe their organization can do more to educate about IoT security threats.

With an estimated forecast of over 30 billion IoT connections established by 2025, security must be at the forefront of user and organizational concerns.

Open Banking will protect a specific part of the data

While open banking can only protect a specific part of data collected by IoT devices with the utmost certainty, the implementation of open banking policies and technologies mainly protects information related to IoT devices. finance and payments.

With smart payments, automated shopping, and direct banking links on the rise, finance is sure to become a fundamental aspect of IoT.

How open banking is kept safe

Security is one of the main pillars of open banking, and despite the security issues, it is still as secure as traditional banking.

The Open Banking API endpoints are actually developed by banks and have been rigorously tested for maximum data security.

Open banking also empowers consumers themselves, allowing them to share data only with third parties of their choice. Eligible banks have also implemented their own security measures, providing a multi-layered security wall.

Read More
1 … 7 8 9 … 46

Videos

Featured Video Play Icon

SPOTLIGHT ON SPOT MONEY

Spot Money delivers brand-agnostic banking, digital payments, and an all-in-one marketplace in South Africa. Andre Hugo, CEO of Spot Money, discusses how together we’re unlocking doors for users worldwide with open banking, market insight, and agility.

Read More
Featured Video Play Icon

THE KLARNA CARD IS HERE

The Klarna Card is here – now available in the US. Shop at your favorite brands the world over and enjoy the flexibility of Pay in 4 anywhere VISA is accepted. Pay nothing upfront and make payments every 2nd Friday. Track rewards, purchases, and payments in the app. Your first 12 months are free, then just $3.99 to keep your card active—and always interest-free.

Read More
Featured Video Play Icon

INVESTORS IN THE MULTIVERSE OF BEARISHNESS

The simultaneous rise of various risks has caused investors to experience heightened uncertainty, elevated cross-asset volatility, and weak market performances. Kishore Muktinutalapati, equity strategist at ADCB discusses the possible path ahead and how investors should navigate this extreme bearish sentiment in markets.
Read More
1 … 7 8 9 … 50

Whitepapers

Sorry, no posts were found.

Infographics

Sorry, no posts were found.