Blockchain Technology in Banking
Merge shared databases and cryptography, blockchain allows multiple parties who do not know each other in different ways, and Blockchain Technology in Banking can also access digital ledgers that are constantly updated.
Blockchain technology, which is considered very powerful, is capable of acquiring currencies in an open manner. When it comes to currencies like Bitcoin, Litcoin, Dogecoin. The blockchain is a database in every bitcoin transaction. People have the metadata of the transaction when the transaction occurred. Cryptography is used to prevent tampering from transactions.
It will be possible to edit only the parts of the blockchain that they do themselves and this is done only by cryptography, this keeps the distributed blockchain in sync by writing files and having the necessary private keys.
By implementing blockchain, the bank can be made more profitable and valuable. One step would be to reduce banking transaction costs and paper. And by reducing processing costs, banks can save a lot of money.
If blockchain is implemented in the future, it will reduce fraud and many other technologies will be known. Today, services like money transfer are very vulnerable to fraud and most of the banking system in this world is more vulnerable in cases like cyber-attack and can get rid of existing crimes.
Know your Customer (KYC)
According to a survey, other institutions spend millions of dollars per year, this makes it easier to identify the customer and helps reduce crimes like terrorism and money laundering. Blockchain allows the organization to reach out to other organizations. Compliance department cost will decrease.
Blockchain provides a facility in which they can store any type of digital information called Smart Contracts which are made from computer code. This code is executed by two or more parties. This code is programmed under the criteria and the transaction is executed.
Clearing and Settlement
That the dirty web costs to run the record investment of trillions of dollars of debt and securities The best example of this Australian Securities Exchange which aims to clear and dispose of our business on the blockchain system.
Most of the work in trade finance is still based on paper such as bill delivery and faxes are sent by post to people all over the world. People say that blockchain is the obvious solution especially many parties have access to goods information. This is a very important element.
When his company raises funds through a syndicated loan, it takes them 20 days to deal with that transaction. When the loan banks change hands, fax is used for communication there to connect with each other. Finding avenues for blockchain for which ownership loans are quickly trained.
Blockchain Interruption Payments can also be transformational. It makes banks work more securely between organizations and customers.