Fintech Terminology 2021

fintech terminology

As financial technology is increasingly entering the daily life of millions, much of its terminology remains difficult to understand.

FinTech terminology is your knowledge of FinTech that depends on understanding a lot of terms.

The growth of digital financial technologies is investing all over the world.

Online markets like AjkerDeal and Daraz and mobile financial technologies like bKash are redefining the way people do business at a pace never experienced before. At the same time, technologies like bitcoin, blockchain are conquering the financial world. Many experts predict that the world of finance will be very different in the coming decades.

As a result, if you do not want to lag behind, now is the best time to understand how fintech terminologies work. To help you get started, here is a list of 10 words related to fintech.

Fintech Terminology 2021:

  • Marketspace
  • Cryptocurrency
  • Cryptocurrency portfolio
  • Blockchain
  • Crowdfunding
  • Ledger Permission
  • SaaS
  • Bitcoin Cash
  • Payment gateway
  • Mining
  • P2P

 

Marketspace:

Fruit of digital technology.  Marketspace refers to online markets that eliminate the distance between buyers and sellers in terms of how transactions are performed. It is basically an exchange environment based on the information and online communications. Here, only the exchange of products takes place in the physical world; but all transactions are processed electronically.

Cryptocurrency:

Type of digital currency that uses cryptography and can be spread on the web. Ensures the security of financial transactions.

Cryptocurrencies use decentralized control, unlike centralized electronic money, through accounting technology distributed as a blockchain.

A digital currency that is based on cryptography to validate and protect transactions. There are different types of cryptocurrencies. Bitcoin and there are among the best known.

Cryptocurrency portfolio:

Crypto wallet is software that stores public and private keys used to receive and spend the cryptocurrency.

  • These keys allow the owner to write on the distributed ledger which, in effect, means the expense of the associated cryptocurrencies. The portfolio also shows the balance, expenditure, and acquisition of digital assets.BITCOIN

a digital or cryptographic currency that allows payment in a decentralized peer-to-peer (P2P) network not regulated by any central or intermediary authority.

Bitcoin is the first cryptocurrency in the world. It is both a digital currency and a payment network. You can buy products online or transfer funds via mobile financial technology with bitcoins.

Unlike traditional currency, Bitcoin is not regulated by any central bank or regulator. It is sent by the peer-to-peer without intermediaries and the transactions are recorded in a distributed public accounting system (eg blockchain).

Blockchain:

Is a type of distributed accounting system in which cryptocurrency transactions, such as bitcoins, are recorded and recorded. This technology has been tested by the bitcoin community.

Software that emerged for the first time as the system behind bitcoin. Also known as DLT (distributed ledger technology), it is a shared record of information that is managed and updated by a computer network rather than a central authority. It is protected and protected by advanced cryptography.

Records on a blockchain are publicly accessible. But the data is structured by extending it across the network using cryptography, making it impossible for a single part to manipulate it.

Crowdfunding:

When small amounts of money are collected by a large number of individuals to finance a commercial enterprise or a particular project, it is called crowdfunding. Although a relatively new fundraising way, the statistics show that there were an estimated $ 34 billion collected in 2015 from crowdfunding around the world.

Crowdfunding makes use of the easy accessibility of large networks of people through social media and crowdfunding sites to bring together investors and entrepreneurs and has the potential to increase entrepreneurship by expanding the pool of investors from which to raise funds beyond the traditional circle of owners

Ledger Permission:

A distributed ledger that requires authorization to access. The register is managed only by a limited number of parts. This is the kind of blockchain technology that large companies, like banks, are more likely to use due to data privacy needs.

SaaS:

Software-as-a-service or SaaS are centrally hosted web applications to provide services to users. Under a SaaS model, the software is cloud-based, allowing users to access it over the Internet.

The software is usually licensed by subscription and does not need to be downloaded or installed. The Google apps, Dropbox, Salesforce are examples of SaaS.

Bitcoin Cash:

 A bitcoin alt-coin clone that was created in August 2017 when a group of Chinese miners started a bitcoin blockchain fork.

Bitcoin Cash brings money to the world, fulfilling the original Bitcoin promise as “peer-to-peer electronic money”. Traders and users are enabled with low rates and reliable confirmations.

Ethereum:

 A type of blockchain network. Ethnoum blockcoin and blockchains differ mainly in purpose and capacity. While bitcoin blockchain is used to track the ownership of bitcoin digital currency, the Ethereum blockchain can be used to create decentralized applications. The virtual currency associated with Ethereum is called Ether.

Payment gateway:

A payment gateway is a service where payments made by a buyer to a seller are automated. Usually, the payment gateway service is provided by third-party e-commerce application service providers that process, authenticate, and release or reject card transactions on behalf of the merchant through secure Internet connections.

Mining:

Cryptocurrency mining is the process of verifying encrypted transactions in a cryptocurrency network. The distributed public accounting system (eg blockchain) used by cryptocurrencies is publicly available but not freely accessible.

To do this, technology experts are needed. These experts are called miners who receive a fee to decode each transaction and keep the process in rotation.

The process by which transactions are verified and added to the blockchain and new bitcoins are created.

P2P:

Abbreviation of peer-to-peer. In computing, a P2P network is a distributed application in which the peers make available a part of their resource (for example, network bandwidth) to the other participants without the intervention of the servers.

In Fintech, P2P is defined by direct transfers between two people rather than through an intermediary bank. When you send money through the Bkash app to a friend who also has a personal Bkash account, this is a P2P money transfer.

 

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