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The Difference Between Blockchain and Fintech

So what is the difference between Blockchain and Fintech? Although blockchain plays a key role in Fintech innovations, they are not the same.

One thing is for sure: Both Blockchain and Fintech have the potential to change how financial institutes and various industries currently operate. So keep reading and understand this important distinction.


A technology originally designed with cryptocurrencies applications in focus, and specifically bitcoin. Blockchain was created to solve the "double-spending" problem (a potential flaw in a digital cash protocol in which the same single digital token can be spent more than once), allowing public transactions without the need of a trusted authority or central server. Since then it has inspired many other applications. Due to its nature and great capabilities, blockchain apps have shown great opportunities, not limited to finance. It can be applied in various industries and improve many departments within an organization. Blockchain is method of storing data in an open, decentralized and distributed ledger, across many computers, where information is stored in blocks linked together in a chain. It can record transactions between two parties quickly and efficiently. By design, a blockchain is resistant to modification of data: a record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network.


Financial Technology, known as Fintech, is a new and innovative approach that aims to disrupt traditional financial services. It refers to a new industry using technology to improve activities in finance. Fintechs consists of both established organizations and startups, aiming to enhance the services currently provided by existing companies in the financial sector, by redefining and creating new application, processes, products  and business models. In other words, Fintech is an umbrella term for financial sector technology. Fintechs face challenges in the financial sector: they are often in conflict and negatively seen by financial regulators like banks and governments. This is due to a a new approach that is not only more effective but can have major affects on such organizations. Some Fintech companies use blockchain as their primary technology, but noy all of them. On the other hand, most Blockchain & Crypto companies are considered as Fintech.

Types of Fintech:

  • Blockchain and Cryptocurrencies

  • Regulatory Technology

  • Insurance Technology

  • Mobile Payments

  • Robot-based Advice and Stock Trading

  • Crowdfunding

  • Personal Finance Management

  • Peer-to-Peer Lending and Borrowing

Fintech Uses and Examples:

  • Seamless Mobile Transactions

  • Alternative Consumer Banking Solutions

  • Better security with Blockchain

  • Support for Cryptocurrency

  • Various Online Payment Gateways

  • Automated Insurance Processes

Fintech is changing the the financial services industry with Chatbots for customer service, Machine learning and AI for fraud detection, Omni-channel banking and obsolescence of bank branches, Biometrics for stronger security and Blockchain for digital transactions. The most considerable application of blockchain is the disruption of payments for banks as well as customers by reducing the cost and time taken to transfer money. Fintechs that can offer what banks cannot will allow them to grow a new customer base and have high retention.

If you want a proper learning structure to grasp these differences and be able to apply blockchain and fintech solutions in your company, then check out our Global Master's in Blockchain Technologies:


Zigurat Global Institute of Technology