Will blockchain change the way we do banking
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The document discusses the potential impact of blockchain technology on the banking industry, emphasizing its ability to enhance security, eliminate procedural flaws, and streamline transactions. It highlights the shift from centralized trust to a distributed system and suggests that blockchain could revolutionize tax payments and banking practices within a decade. However, challenges such as integration and the need for collaboration with non-banking sectors remain obstacles to widespread adoption.
Will blockchain change the way we do banking
- 1. RWaltz Software Pvt.Ltd. | 2019 Will Blockchain Change The Way We Do Banking?
- 2. Table Content 1. Synopsis 2. Blockchain Making Tidal Waves in Core Banking 3. How exactly is this drive immutability helpful to the banks? 4. Money will stop hopping the borders requiring a visa. 5. Blockchain Banking
- 3. Synopsis Currency Has Three Eras: Commodity based, politically based, and now, math-based. The physical appearance of money in any form is a satisfactory sight, holy contentment. But the changing technology demands this satisfaction to shift the gear in every decade or so. The new luring scenery is that of the “Blockchain ecology,” about which almost all of us are aware. But has it become that popular to take the place of the modes of our daily transactions? Well, the answer, for now, is a ‘No,’ but, it can and certainly will be a ‘Yes’ tomorrow. This is no exaggerated claim. An insight into the workable global trends is replete with proofs. RWaltz Software Pvt.Ltd. | 2019
- 4. It is expected that in less than ten years, Blockchain will be used to pay and collect the taxes. Banks among all other industries are the first one to adopt the Blockchain technology, J.P Morgan is first such enterprise. Imagine if in a way, community pooling is digitized and each of its members is like the nodes on this virtual ledger, internally and secretively aware of their transactions; this reference makes it easy to understand how the peer to peer transaction in the Blockchain through cryptocurrency, like bitcoin, works. The generated blocks are compounded in a single ledger accessed by all. RWaltz Software Pvt.Ltd. | 2019 Blockchain Making Tidal Waves In Core Banking System
- 5. Looking at the simple utility first, we can say that Blockchain technology will help to bridge a unifying link between the banks, avoiding the need of the correspondent banking. Eliminating the need for a centralizing agency like a ‘Central Bank’ for a database and a management systems banks will be able to formalize and secure the digital relationships among themselves. With the uncopiable digital code designed by the bitcoin, there cannot be repeated scores of money either transacted or received. The workability of blockchain benefits for bank lies in the fact that to a major extent it is able to eliminate or skip the procedural flaws as well as the cost. Accounting and auditing have never been hassle- free domains, but wouldn’t it be great if they are not needed at all? Blockchain databases are built from their own transaction history. In this self-contained system of record, the tactful survey of transactions is just not required. Regulatory compliance- the fear of money laundering is one of the bank's nightmares. To get an edge over it, banks have to undergo severe reporting obligations to their respective anti-money laundering agencies erected by the countries. For example, every single time they authorize a transaction above $10,000, there arises a need to inform the FinCEN, who has to upgrade its anti- money laundering database regularly. RWaltz Software Pvt.Ltd. | 2019 How Exactly Is This Drive Immutability Helpful To The Banks?
- 6. Blockchain helps in creating the straightest line between the two points on a banking circle, who would use a shared ledger for transactions, contracts, and relevant documents. The ease of simultaneous entries between two banks parted by a border, disrepute the need of the complex bank structures and transactional delays and the errors. RWaltz Software Pvt.Ltd. | 2019 Money Will Stop Hopping The Borders Requiring a Visa
- 7. Well, Blockchain banking today is very much a reality, as big banking entities have opened their windows though partially. To make it function flawlessly, however, a lot is yet to be done. For example, there has to be a substantial nexus between the banking and the non-banking sector, which could lay its foundation on the Blockchain fostered ‘smart contract’ phenomena. We should never forget the contribution of the non-banking financial sectors in spreading the roots of digital Transformation to remote parts of the globe. Blockchain has amicably changed the concept of trust, from ‘centralized trust’ to that of the ‘distributed trust’. The pooled interest of the bank is imminent, to make Blockchain banking a reality in any country in the immediate future. Well, inceptions have voids, so does blockchain technology in banks. The most prominent being the issue of integration, as every face has ahead and there is a great deal of struggle to make all accept, what is acceptable to a few. The same is with blockchain technology in the banking sector, and if this new revolution has to come in the way we do banking, we all have to accept and embrace the change. RWaltz Software Pvt.Ltd. | 2019 Blockchain Banking
- 8. RWaltz Software Pvt.Ltd. | 2019 USA Office: 5910 Shiloh Rd East, Suite 123, Alpharetta, GA 30005- USA. India Office: Plot No.23, Aatmavishvas Colony, Near Rathachakra Chowk, Indira Nagar, Nashik - 422009. Address : Contact Details : Contact No.: +1 404 973 2223 +1 678 298 8244 +91 7499345429 Email: contact@rwaltz.com Website: www.rwaltz.com RWaltz Software Pvt.Ltd. | 2019