Blockchain technology is being discussed all over the world nowadays. Every major economic forum hears about it. It may be a stranger to the common people, but in times to come, it will have the greatest impact on the common people. That’s why we tell you about Blockchain Technology from the public eye today. You must have heard of cryptocurrency and bitcoin. It has been a topic of discussion among investors around the world for the past two years. Blockchain is the technology used in bitcoins, but it is different from cryptocurrencies. It is used in many ways to build a secure digital transaction system. India is also eyeing this technology.
Banks’ spending may decrease
Whether the craze of cryptocurrency will last for a long time is a matter of dispute, but blockchain technology is here. Using blockchain technology, it protects transactions from a great extent that can cyber-detect the system and alter transaction data. Moreover, with the increase in security, the technology also reduces the cost of online transactions. It is mainly because of these factors that banks want to use blockchain technology for their future transactions. So let’s take a look at some of the benefits from this blockchain.
Online Fraud Will Reduce
In this technology, there is a series of blocks that record data and these blocks are shared anonymously with stakeholders within a network. All transactional data is verified with each stakeholder on the network, eliminating the scope for vulnerability arising from cyber-related threats. So it becomes almost impossible to steal the customer’s information. Transactions in this system take place between two parties without the intervention of a middleman.
Banks’ efficiency will increase
This technology can enhance the efficiency of banks through shared books between the parties. Devices on this system can interact peer-to-peer, without any third-party intervention. It keeps the human factor out of the banking system’s scrutiny, making it easier and faster to monitor transactions. This will also substantially reduce the overhead expenses of the banks, making the entire system more efficient.
Increase in data security
The existing centralized IT of banks. Infrastructure poses a threat to the security of customers’ data. Phishing, hacking, spoofing are all some of the cyber security challenges faced by banks. Basically, KYC involves a third-party service provider to help banks and financial institutions deal with highly sensitive processes such as collecting documents, authentication, etc. Using blockchain technology will eliminate the need to authenticate transactions using passwords. Decentralizing the network will help the parties gain consensus through blockchain-based SSL certificates. All data will be recorded throughout the network and cannot be overused to the previous block of a network. So, to breach security and to steal data of a single transaction, the entire order of the block has to be re-set, making it almost impossible for anyone to violate it.
Coverage of multiple digital products
The technology can be used in many other places, apart from money transactions. It can be used to deal with other digital products like insurance, investment, etc. This will not only help increase data security but also reduce costs and save processing time.
These Are The Challenges Of Blockchain Technology
Blockchain is a new-age technology that is many times more beneficial than many other systems but there are also challenges in terms of compliance, enforcement and regulatory problems such as how banks will complete the KYC process and try to legalize black money. How to follow the law to rein in it.
Where to Learn & Earn BlockChain Technology Certification.
Blockchain institute of technology