Blockchain Technology in Banking

If Bitcoin was developed into the blockchain network to facilitate financial transactions, how come the banks haven’t taken full advantage of this technology yet?

Well, we still don’t know why and when banks will do the complete transition to the blockchain world. But we know that this disruptive technology can improve all the different processes of a bank, from money transitions to paperwork.

Enterprise Blockchain Technology Solutions

Let’s look at the characteristics of blockchain that can improve the banking sector:

• Tamper-proof: blockchain functions as a digital distributed ledger, so all the information in the network is saved in different nodes all over the world. This means that to forge any data, it is necessary to have control of over 51% of the computers that hold the nodes. 

Improvement: With no possibility of hack attacks, banks can become more reliable institutions, giving more security for their clients and dodge money loss.

• Immutable: Once the data is recorded into the chain, it can’t be changed, avoiding frauds and loss of information.

Improvement: This feature can help banks save their client's information and all the contract’s data online, reducing paperwork.

• Transparent: Blockchain is an open-source network. Any movement, transaction or action in the chain is accessible for everyone, giving transparency to data sharing.

Improvement: Transparency is very important to avoid problems like money laundering.

• Decentralized: There is no third-party in the blockchain, as we mentioned, the data is stored in a distributed way and all transactions happen directly, peer-to-peer.

Improvement: Without the need of the middleman, the financial transaction can happen faster and in a cheaper way.

As we can see, the disruptive technology can only bring advantages to the banking sector. Blockchain App Factory, the leading company in the blockchain market, offers end-to-end solutions for your business.