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Risk-Free Banking with Blockchain Technology

By CIOReview | Thursday, May 3, 2018

Confidence and trust are the two most essential things banks are supposed to ensure for their customers. Over the years with the growth of technology grew the number of hacking techniques as well.

The old school method of authentication is not up to the mark as paperwork might get lost; records could be hacked or deleted which can also lead to chargeback fraud. All these possibilities have made financial sector to turn their attention towards the decentralized method of storage which can be tracked and recognized. 

Blockchain with its decentralized storage approach uses securely shared ledger to track, approve or reject transactions, providing a complete record of any asset transfer. Blockchain can offer better security for all sectors including financial, real estate, contract management, and medical records.  When it comes to secure banking, blockchain banking is the only answer. The more layers of security, the more room for errors, although blockchain can eliminate the multilayer banking system, which is exposed to banking fraud by the decentralized approach. The big-time promises blockchain gives to the banking sector includes real-time monitoring which keeps records transparent, each block with the customer information can be linked and can avoid identities hidden. Blockchain also eliminates third party approval and can replace stressful paperwork that can be easily bypassed and hacked. 

Blockchain that is closely associated with “bitcoin” and other cryptocurrencies has the potential to take over banks and provide a secure transaction method which can precisely cut any widespread banking fraud. The cryptographically authenticated ledger record tracks and makes it easier for transactions to be made in real time at low cost at the more risk-free environment.