The Blockchain Revolution in Banking

What is blockchain?

Many of you may be familiar with Bitcoin, it is a type of digital currency that operates independently from a central bank, but the technology behind that system most people are not familiar with is blockchain. There are many different blockchains public and private and they allow anyone to send value anywhere in the world where the blockchain file can be accessed. Think of each chain as an online database stored in a distributed, peer-to-peer fashion. The storage devices for the database are not all connected to a common processor and each block ordered records have a timestamp and a link to a previous block.

You might have got a blink doubt How is this Blockchain going to help in the Banking sector?

Fraud Reduction

When it comes to Fraud reduction our mind instantly runs into the topic of cyber attacks. Here in the banking sector, there are chances to have cyber attacks because the data will be stored in the centralized system where the all the data will be in a single storage when it comes to blockchain technology the data will be stored in a decentralized manner. It means the whole data will be in the blocks. for blockchain technology also there are threats but yet now nothing happened to this technology because the cryptography language and private keys are being protected.

Smart Contracts

Because blockchains can store any kind of digital information, including computer code that can be executed once two or more parties enter their keys, blockchains enable us to have smart contracts. This code could be programmed to create contracts or execute financial transactions once a certain set of criteria has been achieved—delivery of products could signal an invoice to be paid for example.

Trading Platforms

It’s exciting to contemplate the changes that might occur with our trading platforms if they relied on blockchain-based technology. There’s no doubt that the risk of operational errors and fraud would be dramatically reduced. NASDAQ and the Australian Securities Exchange are already exploring blockchain solutions to reduce costs and improve efficiencies.

Blockchain Standards

The blockchain is Internet latest technology. As such there are no set standards as people don’t know what blockchain is fully capable of. Some believe there will be a maximum of two types of blockchain and the rest will be like smaller intranets.it’s becoming apparent that blockchain will be available open source for anyone to adapt and customize to suit their own needs and standards

Conclusion

The blockchain is in the very early stages and people first need to understand clearly what the blockchain use before mass adoption begins. At the moment the speed of development is very slow as a result of knowledge gaps and limited talent in the blockchain industry. But, in today’s digital age this is beginning to shift and those willing to innovate will jump leaps and bounds ahead of their competitors.

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