Modern financial technology, often called fintech, is a rapidly evolving field with new innovations emerging constantly. One of the most game-changing technologies in this space is blockchain.
It hasn’t just improved how fintech companies operate—it has also given rise to a whole new category called decentralized finance, or DeFi.
But what exactly is blockchain, and how is it helping fintech companies grow? In this detailed guide, we’ll explain how blockchain works, why it’s so important in fintech, explore its top use cases, and show you why launching a blockchain-based fintech app in 2024 is a smart move.
How Is Blockchain Connected to Fintech?
Let’s start with the basics—what is blockchain?
In simple terms, blockchain is like a digital chain of records that links every single transaction made with cryptocurrencies. Think of it as a virtual notebook that records and verifies every transaction automatically.
This digital ledger is shared across a global network, making all the information visible to everyone, but unchangeable. That’s why blockchain is known for being both transparent and highly secure.
In the late 2010s, blockchain started gaining major traction in the fintech space. This led to the birth of DeFi platforms—decentralized financial systems that allow people to buy, sell, and trade digital assets without going through traditional banks.
This era also saw the rise of stablecoins, which are digital currencies tied to real-world assets like the US dollar to reduce price volatility.
Fast forward to 2024, and there are now thousands of fintech solutions powered by blockchain technology. And the industry is still growing fast. Experts predict the blockchain fintech market will grow from $3 billion in 2022 to $58 billion by 2031.
This shows that blockchain’s role in fintech is just getting started. As demand for decentralized platforms continues to rise, so will the opportunity for entrepreneurs. That makes 2024 an ideal time to build your own DeFi app and tap into this booming industry.
Want to Build a Blockchain Fintech App?
We specialize in developing secure apps that meet important compliance standards like AML (Anti-Money Laundering) and PCI DSS (Payment Card Industry Data Security Standard). These ensure your app protects sensitive user information.
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Top Blockchain Use Cases in Fintech
From startups to global financial institutions, many companies are integrating blockchain into their operations. Let’s explore the six most impactful ways fintech companies are using blockchain today:
1. Crypto Payments
Apps like Coinbase make it easy for users to send, receive, and store cryptocurrencies. Digital wallets such as Trust Wallet allow users to transfer crypto instantly. Businesses are also adopting platforms like BitPay, which let them accept crypto as payment.
We developed a crypto wallet called Broex, where users can manage digital assets in just a few taps. We built the app from the ground up, designing an intuitive UI and integrating fast login and seamless performance on both Android and iOS.
2. Trading and Investing
Crypto investing is more popular than ever, even with Bitcoin’s price constantly changing. Platforms like Binance and Robinhood dominate this space, enabling users to buy and sell cryptocurrencies, view charts, and access learning tools. Some apps also offer premium features and trading communities.
3. Insurance
Traditional insurance claims can take weeks to process. But with blockchain, the process becomes automated and much faster. Claims are verified using smart contracts, so customers can get payouts without delay, and insurance companies can focus on more complex cases.
For example, Etherisc provides customizable blockchain tools for insurance companies, including automatic claim processing and smart contract features.
4. Lending
Crypto lending has become one of the most profitable DeFi models. Platforms like Aave made over $186 million in revenue in 2022. Their model benefits both lenders and borrowers—users can earn passive income by lending crypto, while borrowers get fast access to loans without needing credit checks or paperwork.
5. Fraud Detection
Because every transaction on a blockchain is permanently recorded and visible to all, it’s much harder to commit fraud without being caught. This level of transparency helps protect financial companies from fraud-related legal issues.
6. Identity Verification
Centralized services often struggle to keep personal data safe. Blockchain offers a better alternative—decentralized identity verification. Users can store encrypted personal data, like ID numbers or birth dates, and only share it with verified parties like banks or insurers. This improves privacy and reduces identity theft.
How Blockchain Is Transforming Fintech
Blockchain offers fintech companies tools and opportunities that simply aren’t available in traditional systems. Here’s how blockchain is revolutionizing the financial world:
New Business Models
Blockchain has created entirely new business opportunities—like crypto lending, NFT trading, and play-to-earn games. Fintech platforms can now support P2P transactions, smart contracts, and data encryption, all while making money from subscriptions, fees, or token sales.
We helped build Kaiju, a crypto wallet that includes Web3 games and NFT features. It wasn’t just a wallet—it was also fun to use. We designed in-app games, social features like leaderboards, and used vibrant colors to boost user engagement.
Higher User Engagement
Blockchain fintech apps often include gamified features like badges, progress trackers, and rewards. Some platforms even allow users to vote on new features. This makes users feel part of the project, encouraging them to stick around longer.
New Fundraising Methods
Platforms like Republic allow investors to fund startups directly using blockchain. Investors receive digital tokens representing company shares, which they can easily trade. These transactions are much quicker than traditional bank transfers, with fewer intermediaries involved.
Global Financial Access
With just a smartphone, users anywhere in the world can access blockchain services and convert traditional assets to crypto. As bank loan rates rise, more people are turning to DeFi for more affordable financial tools. If your DeFi app is fast, easy to use, and offers low fees, you could attract a large audience.
Better Resource Allocation
Blockchain automates tasks like identity checks and transaction approvals. This allows fintech companies to save on labor costs and focus more on growth and product improvement.
Key Benefits of Blockchain in Fintech
Now let’s highlight the biggest advantages of using blockchain for your fintech business:
Automated Transactions
Blockchain uses smart contracts, which are coded agreements that automatically execute once conditions are met. This system allows apps to process transactions 24/7 without needing human approval.
Platforms like Chainlink allow smart contracts to pull real-time data from external sources—perfect for verifying prices, weather data, or even insurance conditions.
Decentralized Data Ownership
In regular web apps, banks and tech firms often control business and user data. But with blockchain, you remain in control. No central authority can access or manipulate your data without permission.
We built a multicurrency crypto wallet as a user-friendly alternative to MetaMask. We redesigned the interface with easier navigation and integrated blockchain APIs for fast, secure transactions.
New Revenue Streams
Blockchain opens up creative monetization strategies. You can charge for premium features like smart contracts, offer access tokens, or combine several models to diversify your income.
Top Blockchain-Based Fintech Platforms
Here are some standout platforms in the fintech blockchain space:
- MetaMask: A secure, Ethereum-based wallet that acts as a gateway to DeFi apps. It doesn’t store private keys online, making it safer from hacks. It also works across multiple devices.
- CashApp: A simple mobile app for P2P crypto payments and investing. It allows users to send Bitcoin or buy stocks with almost no fees, making it popular among casual investors.
- ChainAnalysis: A powerful tool for B2B fintech companies. It provides transaction monitoring, risk alerts, and crypto market insights. It helps detect fraud and stay compliant with financial regulations.
- Coinbase: The go-to crypto exchange for beginners. Its clean design and tutorials make it easy to use. You can buy, sell, and store crypto all in one place.
- Onyx by JPMorgan Chase: A blockchain-based platform by one of the world’s biggest banks. It helps businesses conduct crypto transactions and streamline digital payments while staying compliant with financial laws.
How Blockchain Solves Common Fintech Problems
Here are a few major issues fintech companies face, and how blockchain helps solve them:
Weak Data Security
Traditional financial systems are vulnerable to data breaches. Blockchain’s distributed design ensures that no single server holds all the data. Every transaction is stored across the entire network, making it much harder for hackers to break in.
Identity Theft
Identity theft is a major concern in centralized banking. Blockchain uses encrypted identity verification, allowing banks to verify users without putting their data at risk. Platforms like Civic store verified identity data securely and only share it with trusted sources.
Lack of Transparency
Unlike traditional finance, where operations are often hidden, blockchain records all activity in a public and unchangeable ledger. This makes it easy to track every transaction, which builds trust among users and regulators.
Slow Transactions
Bank transfers can still take days to complete. Blockchain’s smart contracts approve transactions automatically, enabling faster transfers and reducing delays for both businesses and customers.
What’s the Future of Blockchain in Fintech?
Blockchain is just getting started. With tech giants like IBM and Amazon investing in blockchain systems, the technology is expected to go even more mainstream. By 2030, the decentralized finance market could grow at a 46% annual rate.
Fintech companies that start building blockchain solutions today are likely to see long-term profits as the space expands. Yes, blockchain development can be complex—but that’s where we come in.
At Purrweb, we’ve helped multiple fintech companies build user-friendly and secure DeFi platforms. If you’re ready to turn your idea into reality, reach out to us, and we’ll send you a budget estimate within 48 hours.
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