Article Image 30987

Is blockchain technology the future of financial security?

Personal data security is one of the most pressing issues in the financial technology world. Could blockchains hold the answer?

What is blockchain technology?

Blockchains are chronologically linear digital ‘ledgers’, collections of financial accounts, that are distributed across multiple computers at once. Digital ledgers record 'blocks' of data about events such as transactions and agreements; these blocks are bound together into ‘chains’ via an encryption process.

It's important to note that blockchains don’t contain specific details about the events they refer to, but instead document event occurrences alongside a digital signature called a ‘hash’. This hash is created only when a majority of computers in a given distributed ledger network verify an event using a mathematical proof – if the sums attached to transactions check out in the eyes of other computers, the relevant transactional data is encrypted and a new block is added to the chain.

What are the advantages of this tech?

The decentralised structures underpinning blockchains mean that a large number of computer nodes are involved in authorising new ledger entries, decreasing the likelihood that anything untoward will slip through. Making covert changes is nearly impossible, because an entry in the ledger can’t be altered without regenerating the blocks that preceded it. Hacking is also made difficult by the fact that every device a blockchain is stored on must be infiltrated at once. Original data can’t be accessed through the hash directly either, making for a near-watertight system of currency transfer.

Will the blockchain impact international money transfer?

There are plenty of cryptocurrency fanatics on the web, but its not just diehards that are getting excited. Major mainstream financial players such as Deloitte and Santander have recently predicted an increase in the adoption of blockchain-based security. The UK's Chief Scientific Advisor, Sir Mark Walport, has been urging the British government to investigate the benefits of distributed ledger systems, and even The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is looking into the implications of blockchain tech for international business-to-business transactions. 

While this wave of interest indicates that there are many benefits to using blockchains for international money transfer, there are also uncertainties associated with all groundbreaking financial technology. Laws surrounding use of distributed digital ledgers are still in their early stages of development, for instance, and its likely that the sheer novelty of the concept will put many institutions off.

Fortunately, it’s already possible to transfer money online securely with The Money Cloud, as all of our brokers have been carefully vetted by the Financial Conduct Authority – contact us to find out more about how our services could help you today.

Comparison tool

Sending Currency
Buying Currency
Send USD Receive

Latest Articles

Chloe Rogers

Your site is top, thank you. I was going to use my bank and but came across you on Forbes site, I am glad I did. I went on and used Torfx very good service got the rate right, saved me money compared to many others you list, they even helped me get an aussie bank account. Once again thank you for help!

Etta and Pierre Deschamps, Documentree Films

We regularly receive funds from overseas and used the Moneycloud to find an FX company who have helped us with a much better exchange rate than our high street bank. We're 3-4% better off as a result. Thank you the Moneycloud
regular overseas payments

MAKING REGULAR OVERSEAS PAYMENTS FOR YOUR BUSINESS

If your business makes regular overseas payments, the costs associated with fees and exchange rates can mount up. We show you the best methods for saving money and taking advantage of superior exchange rates. Demonstrate the considerable savings your business can make over time.

Purchasing overseas property - satisfying your currency needs for payment

EMIGRATING - TRANSFERRING YOUR ASSETS OVERSEAS

Moving overseas can be daunting, with many unexpected aspects to your move you might not have considered. We cover all the financial basics of moving abroad, from the expenses to consider to the most cost-efficient ways to transfer your bank accounts and financial assets to your new home.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter