Learn About Blockchain Applications In Banking
Banking and Technology are related very closely. With the rapid digital innovations banking sector has changed to a large extent. The blockchain technology has changed this sector globally.
This technology makes use of a shared distributed ledger which does the task of storing business transactions in a permanent chain which is unbreakable. This chain can be seen by the different parties which are involved in the transaction.
Blockchain has applications that are very useful in the financial sector. The organization like Chainyard provides block chain services to the businesses. Their services include education, technical workshops, user interface design, network support services and various other activities that are very useful for businesses in different sectors like banking, medical, etc.
Table of Contents
Blockchain Improves The Efficiency Of Banks
Banks witness positive implications if these implement blockchain in the working. Many of the banks allow that there is a connection between their services and crypto. The options like bank transfers and credit cards can be utilized when the bitcoin purchasing is done. It offers various advantages to the banks.
The functions of this technology are used in different industries and have got a success rate. The different spheres of blockchain offer compatibility with financial services. The blockchain network allows communication among the participants who are present within the system. Important information can be shared.
Transactions Are Irreversible
The ledger accounts maintain the records of all the transactions and the necessary details within it. It is not possible to reverse the transactions and tampering cannot be done with the data.
The smart contracts in blockchain services secure the network from any sort of fraud and mismanagement. The banks are connected with their customers with the help of smart contracts that promote accuracy.
The use of a shared electronic ledger minimizes the costs and also promotes transparency. The execution, processing becomes instantaneous. This eliminates back-office processes. The use of smart contracts helps in automation of banking tasks. The blockchain technology helps maintain transparency between its members.
Banks That Use Blockchain
Some banks made theirs in house solutions which include blockchain. Swiss-based banks are actively researching blockchain technology.
UBS implemented this technology in 2015. Their project was financed by IBM. It was possible to perform live transactions with corporate clients. Two transactions were done and this includes car sales in Germany and the other one is textile sales in Austria. These were cross border transactions and passed through the UB’s blockchain network.
It also announced the desire to implement this technology. It makes use of technology through smart contracts to fulfil transactions. In the coming future, it is also going to include an entire customer network and even cryptocurrency within its system.
The banks are showing interest in this technology. So it is clear that the future is bright for the banks which are making use of this asset of technology. The various benefits of the blockchain cannot be ignored in banking like smart contracts, decentralized transactions and a unified currency.