Implementation of Blockchain in the Banking Sector

Abstract

Blockchain technology is transformative, and is expected to have a massive economic impact similar to the one the Internet has had in the past few decades.With the increasing innovation in technology for modernizing our lives, new ways to make day to day life effortless and quicker have been introduced. Banking industry is one such field that has been majorly impacted by the digital transformations with the aim of providing quicker transactions for enhanced customer services, cost efficiency and security. Banks have been used as the intermediary third party for carrying financial transactions from early history. With the advancements in technology, the banking industry has adopted one such technique to overcome this third-party intervention. Blockchain is a digital technology that offers decentralization, security and transparency of transaction records. Bank transactions are often considered non-transparent, inefficient and expensive, blockchain is a data structure that ensures that all of the above problems are taken care of. Blockchain gained its popularity after the introduction of the first cryptocurrency which is bitcoin. Almost every sector and domain have been trying to work with this technology to solve their complications. And this paper is a brief study of how blockchain works and can be used to revolutionize the banking industry.