You all have the question in your mind - why the financial industry range is more preferable for Blockchain Technology? And why this is the most wanted technology? Here we discuss, the reason behind the success pattern of Blockchain technology.
In this blog, we going to explain the facts about blockchain and why it is the most preferable technology?
Come let's enter into the topic
1. A Concise Overview of Blockchain:
Blockchain - It is the distributed ledger, shared the digital record, open technology, transparent and designed by a hi-tech secured service provider. Each and every industry is serving its business model with the combination of a blockchain.
It is the universal search term for all successful business person, for that best example shown in this screenshot. The blockchain is a one-man army to hold all industry most search term to solve data from hacking issues.
2. How Potential Does Blockchain in Banking gets Benefits:
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.
In this video, they show how blockchain works in financing sector; which was created by Financial News
Source: Financial News
3. Major Use Case of Blockchain in Banking:
Smart contracts - To know about Smart contract in one line, It is the line of code which stored in blockchain and will take an action, when it meets its predetermined terms and conditions applied. The benefits of the smart contract are the most apparent in business collaboration, which typically enforced with some type of agreement. It takes place in several intermediates in terms of lack of trust among the transaction.
Know your Customer - This KYC process executed independent verification for each client with the help of blockchain technology, these regulations help to money laundering of each client by one bank or financial organization by having requirements for businesses to verify and identify their clients. The tenacity of blockchain in KYP process is to avoid the duplication.
Cryptographic Wallet: For Crypto Exchanging business, the digital wallet is the mandatory source. If you want to use bitcoin or any other cryptocurrency. This crypto wallet stores the program as public and private keys to interacts with various blockchain blocks, while enabling it the users can send and receive the digital currency also they can monitor their perspective balance.
A technology we Focused:
We are experts in various cutting edges in Technologies, we provide distributed ledger services. Those ledgers have no centralized storage data or administration functionality. Which the transaction data and their details are recorded in multiple stations by using distribute ledger technology.
Our supported Platforms are
Ethereum - a Private Blockchain framework
Hyper ledger - Supported by a Linux foundation
Technologies for Front End - Angular JS , VUE.JS , React.JS , HTML
Technologies for Back End - Python,.Net, Laravel, Node.JS, PHP
4. Issues Faced on Banking without Blockchain
There are many challenges may occur while blockchain is not taken place in banking solution. some are listed below
Human Error Can't Ignore - It is the basic nature for every human they may be wrong, but their developments and successful invention won't go wrong. Statistics says that one-quarter of these outbreaks were caused by the human, such as the employee who downloads a suspicious file or else unleashing malware into the system.
We can't monitor each and every single human through their work to make it smart and secure we need technical support and guides
Third Party Agreements - Middle man process is always placed in some risky terms, We can’t suspect anybody situation can tune them for some serious problems.
When it comes in the Financial sector hacking process may be sure for there. So it is our responsibility to protect the data with cybersecurity and to hold the data in encryption format
Mobile Banking - In recent times, the transaction via mobile gets increased when compared to the past 3 years. In the point of scale in 2017, there were over 720 million mobile payment users worldwide. Also, they say in 2021 surely will touch 1.1 billion users.
When the whole world turns the head towards this mobile transaction then definitely hackers too turn their heads. Make a quick call to blockchain and save your banking data.
Spoofing - It is one of the major drawbacks, hackers simply create fake websites by using your same logo, banners, fonts, colors also they mimic as the original page. Easily they fooled your customer, so be aware of them.
Skimming - In this method hackers may track your account number and PIN number. When a customer swipes their credit cards their skimming device will be attached to the machine. It stores your private banking data, they can do the online transaction and also they change your PIN number too.
When Blockchain technology takes place these issues can also be rectified in the fraction of seconds
5. Benefits from Blockchain Technology in Banking
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 send 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.
This faster cash transaction suits to every kind of currency can also implement with cryptocurrency too.
Improved Security - Share the ledgers helps to keep banks transaction in a secure manner while using blockchain it transacts fastly. Here two keys exist public key that is available to every user, and a private key that is shared only by the parties to the transaction.
Here, Public key is only used to view the user’s account balance and transaction history, they won't have access to identify the account owner’s identity or make any changes. In private key, the linked person to the user’s account number, and can only be used once. If a hacker tries to steal the private key and decrypt it, it won't enable them to make further transactions.
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.
How Pulsehyip help with you?
Pulsehyip is the top most leading award-winning blockchain development company. Here we serve the best solution for these distributed services. Our experts provide the top end to end solution with the binding of innovated technology. Our IT leaders provide the prevailing legacy systems; our delicate developers delivers an affordable, adaptable and scalable framework to back to your firm’s.
We are the best in developing blockchain in banking solution, our high efficient tracking systems help to check your updates and gather feedback about an earlier project and we make sure to transfer data in a secure way.
Our Experts are here to provide a 24/7 support system for your queries. Talk to our Experts!!