Banking sector using Blockchain Technology – Crypto soft Malaysia
A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the current part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.
To use conventional banking as an analogy, the blockchain is like a full history of banking transactions. Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Meanwhile, blocks, are like individual bank statements.
Blockchain in Banking Sector
The blockchain in banking keeps a comprehensive and unedited data of all relevant information related to an online transaction. This application is a blockbuster in financial sectors, as it reduces the time length and makes a fast transaction. It takes place at end-to-end payment systems and avoids unwanted processes.
The use of blockchain technology in the banking sector will lower the cost of financial transactions. The truth is; the long time required completing financial transactions results in high monetary cost. Fast-paced transaction and eliminating payment gateways will result in low financial transaction cost. More so, this will end third-party charges from all financial transaction in the banking industry. This will benefit businesses as well as individuals who perform financial transactions daily.
The use of blockchain in the banking sector can help reduce fraud. Blockchain offers hope because 45% of financial intermediaries are prone to economic crime. Across the globe, banking systems are designed to function via a centralized database. Hence, they are vulnerable to serious cyber-attacks due to its many points of failure. The truth is; all a hacker needs to gain access to the system to breach it. Once this happens, fraud is eminent if such breach is not noticed on time.
Blockchain technology has the ability to store enormous digital information. Thus, it establishes a smart contract in a given transaction once parties involved insert their unique keys. Hence, banks and blockchain companies can collaborate to create contracts for any completed transaction.
This unique technology offers the banking industry many unique opportunities. But certain challenges must be overcome for noticeable impacts to occur in the banking sector. To deploy this technology in the banking sector, it must conform and follow recent privacy laws. This is necessary to protect individual and organizational data as well as the safety of such data.
Benefits from Blockchain Technology
Faster Transaction - Blockchain helps to move your assets faster and safer, it transacts through your ledger entries. If you share the money through the traditional way it verifies your ledger and sends your money in 1 - 3 working days. While we prefer Blockchain entries it receives verification in hours or minutes and transacts occurs in real time.
Improved Security - Share the ledgers helps to keep banks transaction in a secure manner while using blockchain it transacts fast. Here two keys exists public key that is available to every user, and a private key that is shared only by the parties to the transaction.
Improved Data Quality – Data Quality is a bit more complex to handle, Data quality is a big deal to banks. In the modern Blockchain technology it is capable to store any type of data this is also called as smart contracts. By moving any of the various types of banking information into shared ledgers, that information inherits all of the benefits of blockchain technology, including the security features and fast transaction speed.
Reduce Cost and Maintenance - While blockchain technology enters into the concept it also brings smart contract along with it. By implementing smart contracts within the blockchain platform, banks can reduce interactions with counter-parties and intermediaries, which can reduce costs for maintaining and executing contracts.
Thanks for reading our content. For more details, kindly visit our website mentioned below,
Unit3, Level 22, The Gardens South Tower, Mid Valley City,
Kuala Lumpur 59200
Report this ad
Useful Info* Avoid scams by acting locally or paying with PayPal.
* Never pay with Western Union, Moneygram or other anonymous payment services.
* Goruncit.com not responsibility for any kind of dealing risk. All have to be done at your own risk.