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Fintech Notes

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24 views4 pages

Fintech Notes

Uploaded by

murmusupriya1818
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What is a dApp?

A decentralized application (dApp) is a type of distributed open


source software application that runs on a peer-to-peer (P2P)
blockchain network rather than on a single computer. DApps are
visibly similar to other software applications that are supported on a
website or mobile device but are P2P supported.
The decentralized nature of dApps means that once a developer has
released a dApp's codebase, others can build on top of it. The app is
free from the control of a single authority. A dApp is developed to
create a variety of applications, including those for decentralized
finance, web browsing, gaming and social media.

What is dos?

A Denial-of-Service (DoS) attack is an attack meant to shut down a


machine or network, making it inaccessible to its intended users. DoS
attacks accomplish this by flooding the target with traffic, or sending
it information that triggers a crash. In both instances, the DoS attack
deprives legitimate users (i.e. employees, members, or account
holders) of the service or resource they expected.
Victims of DoS attacks often target web servers of high-profile
organizations such as banking, commerce, and media companies, or
government and trade organizations. Though DoS attacks do not
typically result in the theft or loss of significant information or other
assets, they can cost the victim a great deal of time and money to
handle.

What Is a 51% Attack?

A 51% attack is an attack on a cryptocurrency blockchain by a group


of miners who control more than 50% of the network's mining hash
rate. Owning 51% of the nodes on the network gives the controlling
parties the power to alter the blockchain.
The attackers would be able to prevent new transactions from
gaining confirmations, allowing them to halt payments between
some or all users. They would also be able to reverse transactions
that were completed while they were in control. Reversing
transactions could allow them to double-spend coins, one of the
issues consensus mechanisms like proof-of-work were created to
prevent.

What is the EVM?

The Ethereum Virtual Machine (EVM) is the computation engine for


Ethereum that manages the state of the blockchain and enables
smart contract functionality. The EVM is contained within the client
software (e.g., Geth, Nethermind, and more) that you need in order
to run a node on Ethereum. Nodes on Ethereum keep copies of
transaction data, which the EVM processes to update the distributed
ledger. Generally speaking, nodes on Ethereum natively support the
EVM as the client software implements this functionality.

What Is Financial Technology (Fintech)?

Financial technology (better known as fintech) is used to describe


new technology that seeks to improve and automate the delivery
and use of financial services. At its core, fintech is utilized to help
companies, business owners, and consumers better manage their
financial operations, processes, and lives. It is composed of
specialized software and algorithms that are used on computers and
smartphones. Fintech, the word, is a shortened combination of
“financial technology.”
Fintech also includes the development and use of
cryptocurrencies, such as Bitcoin. While that segment of fintech may
see the most headlines, the big money still lies in the traditional
global banking industry and its multitrillion-dollar market
capitalization.

What Are Distributed Ledgers?

A distributed ledger is a database that is consensually shared and


synchronized across multiple sites, institutions, or geographies,
accessible by multiple people. It allows transactions to have public
"witnesses." The participant at each node of the network can access
the recordings shared across that network and can own an identical
copy of it. Any changes or additions made to the ledger are reflected
and copied to all participants in a matter of seconds or minutes.
A distributed ledger stands in contrast to a centralized ledger, which
is the type of ledger that most companies use. A centralized ledger is
more prone to cyber attacks and fraud, as it has a single point of
failure.
Underlying distributed ledgers is the same technology that is used
by blockchain, which is the technology that is used by bitcoin.
Blockchain is a type of distributed ledger used by bitcoin.

What Is Insurtech?

Insurtech refers to the use of technology innovations designed to


find cost savings and efficiency from the current insurance industry
model. Insurtech is a combination of the words “insurance” and
“technology,” inspired by the term fintech.

Importance of Insurtech

Insurtech plays an important part in changing how coverage is


applied and paid for in a number of different ways:

1. Insurtech enhances the customer experience. By leveraging


technology, customers are more engaged in selecting their
coverage, understanding their needs, and getting personalized
service. Instead of having to travel to a branch or speak to a
representative, the future of insurtech is moving towards self-
serve, online dealings where customers have their choice of
engagement channel.
2. Insurtech promotes efficiency. Policy-seekers and policy-
holders can often research and explore options using the
internet and apps. Without having to wait for business hours or
an available representative, many insurtech companies
empower users to quickly access the information they need
without being bogged down in processes.
3. Insurtech emphasizes individuality. Due to the innovative
nature of information gathering and data processing, many
new tools (discussed below) are now available to better
understand each individual's true needs. This not only
improves pricing but delivers more reliable, consistent
coverage based on historical data.
4. Insurtech improves flexibility. Modern insurtech offerings are
more likely to have flexibile, customized, short-term, or
transferrable plans. Instead of needing to lock into long-term
arrangements, insurtech is more likely to give individuals
specific coverage for a specific need over a specific duration.
5. Insurtech reduces operating costs. Traditional insurance
companies relied on brick-and-mortar locations that
necessitated manual labor. Now, insurtech companies can
operate remotely with staff engaging with customers around
the world. The operating model of the online company is
similar skimmer with less overhead.
6. Insurtech may decrease fraud. By leveraging data, analytics,
trend analysis, and machine learning, insurtech companies may
be able to detect fraudulent activities if inconsistencies in data
arises. In addition, big data may also be able to discover
potential loopholes that insurers can seek to close to avoid
exploitation.

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