Every industry is revolutionising by technology in the digital economy and has led to drastic changes. The banking industry is no different. Banks have successfully embraced the continuing future of digitization. We’re on the apex of a radical revolution and yet the majority are unaware. Even those individuals that appreciate the potential of blockchain technology often look no longer than bitcoins. Once someone digs deeper and understands how blockchain functions and its implications they will inevitably realise its importance.
Blockchain is a distributed ledger that retains a thorough and an unedited record of relevant information linked to an electronic digital transaction blockchain. This ledger allows to be in transactions instantly and firmly. Blockchain is a blockbuster in banking because it reduces the period of time it requires to complete a payment and eliminates redundant processes. Blockchain technology gets the potential to unsettle banking. In a global where billions of men and women don’t have access to banks, blockchain technology may have a heavy impact. Residents of developing countries with limited access to banking would get to be able to create an account and make transactions at an international level. It will also enable citizens to truly have a secure and trusted transactions between participants without the need for a centralized monitoring or an intermediary.
It’s not surprising that financial institutions are exploring the unique capabilities of blockchain. The financial organizations can also utilize it to gain improved insight into market moves and increase transparency. Blockchain technology can reduce bank’s infrastructure costs and enable faster processing time. Data management is a real problem in banking, but with the help of blockchain technology, banks can store any kind of data, and allow that data to be accessed only in line with the predefined rules.
Trade finance is a major area within banking that could transform consequently of blockchain technology. The outdated processes in the banking areas must be updated, with regards to cost and efficiency. Blockchain is the greatest platform to bring parties together in a secured network without a third party and by making each transaction securely.