According to a report by Juniper Research, the ‘Fintech’ will benefit over the next five years from three technologies: data extraction, decentralized applications, and quantum computing.
The final arrival of GDPR has been a big headache for most organizations. One of the technologies that have been revealed with great potential to help organizations comply with GDPR standards is blockchain. Electronic distributed accounting technology can create a permanent record to record a transaction history. Because the data is permanent, using blockchain as a database type to conduct transactions with PII could conflict with the GDPR rules. But, when the PII data is stored separately from the blockchain network on which it is processed, the technology becomes part of the solution for GDPR compliance.
With GDPR already in effect, the FinTechs are aware that data breaches will have more significant consequences than ever, and must maintain the client’s consent in front of their marketing strategies and campaigns. We are talking about infractions that represent up to 4% of total revenues, or 20 million euros.
“When it comes to collecting data, GDPR offers the opportunity to do so with a much more positive and open approach to consumer data without betraying user confidence,” said Lauren Foye, senior analyst at Juniper. “Such an approach, which combines transparency and honesty, will be well received, so companies should try to prioritize this, those that do not will face a negative reaction from the client.”
The second technology in the next year will be a significant expansion in the deployment of decentralized applications, such as Dapps, said the Juniper report. Using blockchain as its base, Dapps creates an innovative, safe and secure open source software ecosystem in which to develop new online tools.
“Dapps will gather resources in numerous machines worldwide, taking advantage of the power of thousands of inactive computers,” said Foye. “The results are applications that do not belong to a single entity, but rather are driven by the community.”
Dapps are distributed across many nodes, which makes them extremely tolerant to failures and, at the same time, transparent to users since decentralization will make piracy and fraud less frequent because the data stored in the blockchain they cannot be modified and modified at a later date.
“We believe that these features will lead to n-number of financial actors and third parties to seek to use this technology for practices where security is paramount,” said the Juniper report.
The Juniper report said that 2018 would see quantum supremacy, a quantum computer that can perform tasks that are not possible or practices with a traditional computer. Quantum computing has the promise of quickly solving complex algorithms, redefining areas such as FinTech, logistics and research and development.
“As a result, quantum computing can solve much more complex problems than current binary computers, with qubits capable of being in a state of 1, 0 or even both,” Juniper explained in his report. “This is known as ‘superposition’ and means that quantum computers are millions of times more potent than binary machines and have the potential to affect and disrupt processes in all industries.”