Blockchain in banking
- 2. Introduction Blockchain technology is creating hype from the day of its invention and it has gained a lot more attention in recent years . Because of its transparency and flexibility nature, blockchain is being adopted in many industries for its growth and development. Then how Banking sector will alone be in an exception ? There are thousands and thousands of transactions and funds across various regions , which shows that the Banking sector is also one which is predominantly used by the people. This increases the challenges in Banking and use of blockchain can resolve some of its challenges.
- 3. Major Challenges in Banking Markets 1 . Continuous Monitoring : As the world is becoming digital , every transactions and payments are becoming digitalized and this increases the responsibilities of banking sectors to monitor and record details periodically . 2 . Time Delay : The involvement of third parties while transactions can take 2 to 3 days or a week to complete the payment process . This time taken to process each single transaction is too long and results user in dissatisfaction .
- 4. Major Challenges in Banking Markets 3 . Payment Costs : The involvement of third parties and long duration for transactions , results in high costs for each and every transactions . This payment costs are enormous and this creates challenging situation for Banking sectors to engage its users. 4 . Difficulty in Managing Records : Day by day the users of Banking Sector increases on a huge rate and maintaining the complete ledger for storing all the transaction records is becoming a complex task . This in turn increases the payment process time .
- 5. Blockchain in Banking Sectors Banking sectors performs many steps to keep the payments secure and safe which requires a more mediators. The process of involvement of more middlemen increases expensive of banking sectors.In turns involvement of many people will create a chance for errors and frauds. The use of blockchain in banking eliminates the use of middle men and provides secured transactions with low costs . Blockchain provides high level of security for exchanging data and money.Blockchain is safe, secure, decentralized, transparent as well as low-cost .The use of blockchain in banking , has the potential to solve a lot of problems.
- 6. Benefits of using Blockchain in Banking 1 . Reduction of Fraudulence/errors 2 . Easy retrieving / storing of Data 3 . Smart Contracts 4 . Know Your Customer 5 . Low cost and Reduced Payment time
- 7. Challenges in implementing Blockchain with current Banking Sector Interoperability: The implementation of blockchain with current banking system completely to process smoothly is actually a great challenge.Thus if adoption of this blockchain technology allows multiple system to work effectively , smooth operations of systems can be achieved . Privacy and Security : The use of blockchain provide decentralized public ledger in which providing access and permissions for each individuals must handled with greater care .
- 8. Challenges in implementing Blockchain with current Banking Sector Energy Consumption : The proper implementation of blockchain in banking will result in high amount of energy consumption and this high computing power will leave large amount of carbon footprints . To know more about Blockchain in Banking Sector , read this article : Blockchain In Banking
- 9. Future of Banking with Blockchain Technology Even the biggest jumbos in banking sector have started testing and finding out the best use cases of this blockchain technology . Other than that many banking organizations started investing huge amount for R and D process for blockchain based solutions to solve their issues .Thus the entry of blockchain in banking sectors can resolve lots of problems and issues in banking sector and make banking system transparent and more reliable . Let us all hope for the best changes in Banking System with the use of Blockchain !!!
- 10. To Build a Blockchain for your Banking or any other organization, Contact Bitdeal