Blockchain technology is being hailed as one of the biggest revolutions in the technology world, only next to the invention of internet. Rightly so! Blockchain by its virtue is about being open to participation, immutable or unchangeable and eliminates intermediaries. It not only has the potential to disrupt almost everything that includes exchange of information and value but also delivers a ‘quantum’ leap in efficiency.
The technology warrants security through a distributed ledger, a peer-to-peer database with a set of rules and protocols detailed in computer code alone. These protocols are then enforced through smart contracts via different forms of voting mechanisms among the blockchain participants, which results in an added layer of security for exchange of information. While supply chain is one of the use cases of blockchain technology in banking, there are several fundamental elements imperative to the technology that empower participants to conduct highly secure and transparent transactions and establish mutual trust which also form the backbone of banking business.
Some of the advantages includes; Distributed Ledger, Immutable, Intermediary Elimination etc. Privacy and security concerns have become a paramount for not just organisations but also governments around the world, several public blockchains will be built around use cases from establishing cryptic identities to developing authentic record-keeping mechanisms making use of tokenisation and biometric authentication, fraud-proofing the network further.