Can Blockchain Really Make Banking Transactions Paperless? How Does It Work?
Blockchain is overtaking the various sectors. In Banking sector, and the various other implementations, it acts as a roadmap to secure the transaction. At every step of Blockchain implementation, it involves both authorization and authentication.
The process advances only when the previous step gets executed first.
Blockchain has helped by many folds especially in the banking sector. Many people misinterpret the implementation of Blockchain in banking to be an elimination of paper bills. But, it is way more than that. It involves the authorization and authentication process which takes care of the safety and security of each individual’s details.
Blockchain In Banking Sector- A Shift In Pattern Or Technology?
Banking sector involves transactions while transferring the funds interbank or even intra bank. Intra bank transfer may involve the transfer of fund from the bank’s account to the individual holder’s account. Interbank transfer may involve the transfer of money from various bank accounts. All transactions involve risk but, interbank transfers involve huge risks. Hence, Blockchain makes more sense when we do inter bank transaction rather than intra bank.
Blockchain in Banking Sector is more like a technology shift than pattern shift. Earlier, the transactions were not safe. Then came the general authentication. And now, with the help of Blockchain servers take the input at each step, cross check at the back end then give the output in order to make the process more authenticated. Hence, it can be referred to as an advancement of the technology.
Blockchain In Fintech Company
Blockchain comprises of all the potentials that is required to solve all the problems of banks and financial organizations. It is widely wanted and accepted technology as it provides high security levels while storing, sharing and transmitting sensitive data over the network. Large banks are implementing Blockchain in their business processes. Moreover, they are investing in projects that are based on or developing Blockchain-based solutions. As a result of this, Blockchain will connect billions of people and make banking available to people in small town through the smaller private banks.
Blockchain is totally going to revolutionize the banking industry by making banking available in small towns without compromising the security at the same time. All this will happen with the larger banks paying a lot of attention on Blockchain technology. Implementation of Blockchain will reduce or eliminate the involvement of mediators thus giving a mediator free banking system and transactions.
Reliance & Hsbc Successfully Tested The Blockchain
Having talked about the Blockchain implementation, Reliance Jio owner Mr. Mukesh Ambani has set up a team to evaluate the implementation of Blockchain technology to create new revenue streams and low operational costs. The technology decentralises the information and can be accessed in real time. Thus, Reliance Jio has revolutionised the verification and offering lacs of connections in a day.
Coming back to the banking sector, it is to be brought under focus that HSBC, one of the largest banking player in the market has implemented Blockchain for almost every transaction. Since the Blockchain technology uses a centralised approach in terms of transactions, it makes all the transactions carried out in the banking sector much more secure.
Speeding Up Cross Border Transaction And Going Paperless
Cross border payments have always been a pain point for not only the businesses but also the individuals. People find it really cumbersome in transferring money online especially cross borders. Transferring of money from India to USA involves much more and complex procedure as well as is tiresome. Using Blockchain, the verification process has been speed up and minimized to a day or even for minutes. Now, the remittance are happening within a single day and are much more affordable.
Speeding up Cross border payments will bring the ease of doing business and will make a country truly globalized. For example, a nation is trading with the other nation, and needs to transfer money. In this case it is really important to speed up the process and do instant transactions. Also, since the whole transaction process would be digitized, it would be also helping nations in going paperless and in turn help save our mother nature.
Conclusion
Blockchain is the latest and needed technology on its way. It carries the potential to secure and safeguard the transaction processes. Having said so, it is taking a wide demand and implementation through various sectors especially the banking sector. Since all the processes involved under transactions through Blockchain stands digitized, it can really help nation to go paperless.
