The massive global interest, over the last half a decade, in a path-breaking disruptive alternative financial system, based on a paradigm-changing currency system called "Crypto Currency", especially the cryptocurrency named "BitCoin" and the market buzz around it, has grabbed the attention of the world and brought sharp focus towards the futuristic technology underlying cryptocurrencies - the "Block Chain" technology.
People have understood the great significance of this technology and that has generated interest in its potential utilization in finance as well as non-finance domains. The majority of the world population has heard about blockchain but very few know about its vitality as a safer, cheaper, and futuristic transaction mode that the world is moving towards.
What is Blockchain?
Blockchain is best defined as a decentralized and secure data storage and retrieval technology in which data is secured through cryptographic means and stored by replication over a distributed network of computers across the world. In blockchain parlance the data is called a "transaction" and the storage mechanism is called a "distributed ledger".
Cryptocurrencies like Bitcoin run on blockchain technology, but the use of blockchain in banking and finance is not just limited to it. Blockchain eliminates the requirement of an intermediary or a third party in the transaction process and provides a secure interaction that is practically impossible to be deceived by attacks or hacked.
Utilizing Blockchain in Banking and Finance:
Blockchain is innovatively transforming the finance industry by providing a distributed record of transactions. Whenever a new transaction is added, the entire network gets updated with a copy of the transaction while ensuring that no false transaction is added to the record.
Security, authenticity, and accuracy are very crucial in the banking domain. Blockchain provides a robust solution to banking needs by counteracting the above vulnerabilities. The transaction reliability offered by blockchain technology attracts its use in this domain.
The banking and finance industries are revolutionizing with the inclusion of blockchain and hold a huge scope of future innovation in record keeping and transactions.
To know about a few use cases that highlight the utility of this modernistic technology in banking and finance domains especially in Financial engineering, you can visit this link https://www.iiqf.org/blogs/blockchain/blockchain-for-banking-finance.html.
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