BLOCKCHAIN TECHNOLOGY IS THE FUTURE OF THE GLOBAL BANKING
Block chain is the growing list of records which are linked using cryptography and each block contains the cryptographic hash of the previous block which has some special appeal of its own. a block chain is the resistant to modification of the data and for using as a distributed ledger, a block chain is typically managed by a peer to peer network collectively adhering to a protocol for inert node communication and validating new blocks as well. There are different types of block chain like-
- Private block chain.
- Private block chain.
- Hybrids block chain etc.
Banks are opening new research labs dedicated to block chain technology in order to explore how block chain can be used in financial services to increase efficiently and reduce costs. This block chain is also given the rise to initial coin offerings as well as new category of digital assets called security token offerings. To capitalize on this potential, banks need to build the infrastructure required to operate and create a true global network using solutions based on this transformative technology. Basically block chain use is indeed top of mind among banking executives who lead payments businesses and the survey revealed what executives believe must happen for block chain to gain prominence globally.
As a global network which is critical for helping banks use block chain to help transform payments at scale and help reduce risk of failure. The most effective network should have two defining characteristics like-
- It will offer a quick and efficient on boarding process that enables banks to essentially plug and play into the network for both existing and future corridors.
- It will include the necessary defined rights, controls, organizations and standards etc.
- The network will be open for the banks and non banks to create a level playing field.
The biggest key to turn the block chain potential into reality is collaborative effort among banks to create the network necessary to support global payments and banks need to look at the bigger picture and work together and with non banks to help define the backbone which can underpin a universally accepted and also can transform how bank execute transactions etc. these are the reasons behind we are telling that the block chain and distributed ledgers have a great future in banking sector which has some special appeal of their own and own features and characteristics as well. open source and trusted platforms securely transmit data and value which can help banks not only reduce the cost of processing payments but also create the new products and services which can generate important new revenue streams.
The technology has also developed a lot and by this way only our life can be progressed and banking sector can be developed with the help of this block chain technologies and all.