Key Benefits of Using Blockchain in Banking

November 28, 2020

KaylaTurner
29
Blockchain is a technology that runs Bitcoins, the world’s first Cryptocurrency. Once meant for Bitcoin, Blockchain has now found its application in many sectors. Sectors that use Blockchain technology are finance, defense, payments, food industries, etc.
After that, it is also used in health care, humanitarian crises, elections, fashion, and jewelry. However, in this article, let’s discuss the use of Blockchain in banking.

Use of Blockchain in Banking

Blockchain has various advantages that make it popular in the financial sector. The banking sector has already started using Blockchain. In addition, there is a great potentiality for Blockchain use in banking. Therefore many financial industry giants have already started using Blockchain.
 
Blockchain is very secure for financial transactions. It can reduce time, cost, and energy. In addition, it can reach a very large customer base with security that is hard to break. Above all, technology offers many beneficial features. Therefore, it creates a win-win situation for the banks and the customers.

Key Benefits of Blockchain in Banking

Given below are some of the key benefits of Blockchain in banking. Let’s discuss them!

Very Fast Transactions

In Blockchain transactions, no use of real money happens. Only a ledger entry is enough to make transactions. Customer verification, fund deposit, receipt, and transfer. All these could happen in a few seconds. Customers would get a real-time transaction experience.

Superior Security

There is a logical sharing of ledgers in Blockchain. It makes the transactions secure. The data once verified is not possible to delete anymore. It is a decentralized system. There is no third-party intervention. The transaction time is quick. It gives less/no chance for others to intervene. Your deposited amount will be safe. No government can seize your money kept in crypto form. To enhance the security level, some use 2 security keys. One for public access and the other one is for private access. It is a shared ledger. So the changing of data is not possible. It is possible if you could hack into every user’s account and change the same thing at the same time. You can now understand how difficult it is to alter data in Blockchain.

Accountability

There will be a high level of accountability. It would reduce fraudulent activities and mishandling of assets. Every party behind a transaction is banks would get to enjoy this aspect.

Transparency

Blockchain uses a shared ledger. Nobody can escape from the notice of other users of their doings or misdoings. There is utmost transparency in the transactions.

Reduced Cost

Banking operation is a spread-out one. You need to have many branches, employees, infrastructures, etc, to function. But by using Bitcoin they can decrease their cost. The cost for a bank to bank transactions would be less.

Reduced Time

The transactions happen at lightning speed. Both the bank-to-bank and bank-to-customer dealings have become quicker. The time to access banking history is very easy and quick.

High-Quality Data

Data related to all transactions are orderly and safe. Access to large data is possible. Accessing data like historical data is quite easy.
Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.

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