What is a Blockchain?A Blockchain is a public record of transactions that are maintained by an entire network of computers, to validate transactions and provide reliability. The Blockchain is secure by design and efficiency because transaction records cannot be altered once they’ve been recorded in the blockchain without disrupting the entire network.What is a Blockchain Technology?Blockchain technology is an encrypted, decentralized, peer to peer database where the content files are broken up, encrypted, and stored differentially on thousands of nodes all over the world that communicate with each other to produce a seamless whole. Its strength lies in the fact that it is decentralized. For example, a bank keeps all their sensitive data regarding a foreign exchange transaction that took place in his computer or personal external hard drive which are saved and stored in multiple remote locations for safekeeping and future reference but what if the database is hacked, destroyed, or otherwise corrupted by a computer virus or an act of nature carrying out its course. Of course, the data even though backed up in several locations still remains vulnerable, and can be easily manipulated with by an unauthorized user. This makes fraud or hacking extremely difficult because changes to the transaction and authorized data or informationmust be agreed upon by a majority of all the pieces (blocks) to become valid.What is Forex?The foreign exchange market (Forex, FX, or currency market) is said to be a global decentralized or over-the-counter (OTC) market for the trading of currencies where one currency is exchanged for another as the market determines the foreign exchange rate. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. However, in terms of trading volume, it is by far the largest market in the world as over $3tn in exchange as FX cash daily and also about $3tn is used by FX derivatives utilized by large banks, cooperation’s, government, and institutions today. Is Forex Truly A Decentralized System?The FX market is considered to be ‘de-centralised’, but in actual fact, it is centralised with the administrator access held by the central bank(s). A currency is issued in the form of money, and distributed within an economy by the central bank. Currencies can be exchanged physically or electronically, from any place in the world, and through multiple banks, hubs, agents, brokers, and firms. Meanwhile,the millions of FX market participants that take part in FX trading are limited currencies remain under the tight control of centralized authorities and are subject to multiple centralized reporting ledgers otherwise known as repositories.Reasons To Incorporate Blockchain Technology Into The Forex MarketHere are several reasons why Blockchain technology should be incorporated in the forex market;Low CostThe existing Forex system today utilize a worldwide chain of traders, commissions, generated bills, repositories, fees payment and a lot of paperwork is required to keep track of these transactions which are done by us humans and are highly computer intensive, as well as cost heavy. The use of the current system in play now requires the transaction to pass through a lot of official bodies which at each and every process a fine is levied on the various processes.Improved AccessibilityBlockchain technology brings to play decentralization of record-keeping and greater availability of the information being stored. It being a multi-layered FX trading environment where all the trade information can be factored into one distributed ledger and can be accessed remotely with ease. Blockchain technology can be applied to any type of product, not only for currency transactions. Direct settlement as well as direct ownership are the results of decentralizing ledgers and encouraging greater access. The regulators can easily have access to the layers of all available transactions’ and market participants’ information instantly as the information is stored in blocks on the network.High SecurityAll of those transactions’ information, like volume and price, can be passed onto blocks of single or multiple trades. A sequence of such blocks can then be published on the global and openly distributed ledger in the form of a blockchain to the network as the block information’s are also encrypted. Versatility And Risk ReductionBlockchain has the potential to not only transform markets, but to rebrand them from the ground up. Portfolios can be diversified with clients able to leverage their positions by gaining exposure to new markets by leveraging the markets themselves, not the capital invested. Several blockchains have been developed globally based on the blockchain technology that is public, private or consortium blockchains for various purpose but the need for a universal public blockchain for FX transactions is there and I know it is already being developed as the financial profit percentage turnout of bitcoins and other cryptocurrencies last year 2017 has been huge as all new and old investors looking forward to a remarkable new year have their gaze set on one cryptocurrency or the other to invest. Such a blockchain could become a true global FX network, with the capability of integrating hybrid solutions, like multilayer or multi-ledger add-ons used by FX brokers to reduce risk.SpeedThe number of transactions and speed used by the current DLT can be considered as scarce and slow. An example of it is the execution speed i.e. milliseconds in the real markets, which it is still limited as the in the real market a lot of processes and channels are required. Technological developments and global acceptance of these innovative methodologies will help towards achieving efficiency muchsooner as it’s not just about disruption and innovation butabout solving current problems by developing a just way ofexchanging goods and services.