November 23, 2024

How Businesses can Navigate the Complexities of Crypto Technologies for Banking and Finance

Aletha Kautzer April 22, 2022

EarlyBirds, an Australian company that manages an open innovation ecosystem that offers a way for early adopters, innovators, and subject matter experts (SMEs) to meet and develop partnerships to speed up technology advancement and adoption, wants to point out that they can help businesses in navigating the complexities of crypto technologies for banking and finance. A recent World Bank podcast has examined how blockchain can help revolutionizing various aspects of economic development from trade to remittances. In this podcast, it is pointed out that crypto technologies include all the technologies used for crypto, from blockchain to cryptocurrency and smart contracts. Meanwhile, technological innovators can learn more about how they can use the EarlyBirds open innovation ecosystem to their benefit going to https://earlybirds.io/en/innovator.

Crypto technologies are based on blockchain, which is a kind of decentralized database that is shared among many different computers that are not centrally controlled a government or bank. These computers function as a system where they interact in order to process, verify, and perform transactions. Blockchain is the basis for many cryptocurrencies and it can also be used for many other things that need secure, fast, and decentralized transactions, such as smart contracts that can make cross-border remittance payments easier, especially the technology that secures and guarantees the transaction. It can also be used to ensure transparency in monitoring aid payment transfers and in land registries.

It is important to note that the move to low or no-cash economies based on central bank digital currency (CBDC) appears to be inevitable and when this happens, this will prove to be disruptive for the banking industry, opening up competition from asset-light, nimble, fintech companies that are focused on creating value within the ecosystem. This new model has the advantage of reaching more people with faster and better services and offering credit to businesses with better terms while preserving efficiency and liquidity for the capital markets.

The problem is that some financial institutions may be reluctant to adopt blockchain technology because it is a relatively new technology. Unfortunately, if they fail to find a way to integrate blockchain into their operations, it would be challenging for them to adapt and remain viable in the rapidly changing financial environment. Companies that are finding it difficult to understand blockchain and how they can use it to their advantage can find out how they can adopt new technologies checking out the EarlyBirds website at https://earlybirds.io/en/early_adopter.

There are many challenges that organisations need to resolve with blockchain and crypto technologies, such as security, potential privacy leakage, scalability, government laws, regulations, energy consumption, and privacy. Furthermore, there is also a rapidly rising number of solutions becoming available for all sectors in blockchain. For cryptocurrencies alone there is a broad range of solutions that can be used for decentralized finance (DeFI), which includes decentralized exchanges and decentralized financing apps. Businesses can have EarlyBirds as a partner of choice that can help them navigate the complexities of crypto technologies and blockchain and find solutions for these difficulties and possibly grab opportunities for increasing or capturing new market share.

The EarlyBirds open innovation ecosystem has two primary components. One is the Explorer program that is designed to hasten the process of technological innovation for the whole company as a service. The Explorer program has several valuable features, such as: regular webinars to help stimulate innovation in the organisation; a nominated SME for the business; a platform enterprise license; a focus on certain innovations; and quarterly and monthly innovation days. The second component is the Challenger program, which is for those who want to focus on specific issues of the business one at a time. EarlyBirds also has the Edzility framework helping businesses with continuous improvement that enables the organisation to have a better competitive edge and organisational agility.

People who would like to know more about the Early Birds Marketplace and how it can help businesses and better understand the complexities of crypto technologies can visit the EarlyBirds website at earlybirds.io.