Blockchains are getting swirled into the system of dealing with the financial crashes that have been a serious problem in various industries. Blockchain came with a course and aim to eliminate the middlemen or any institution where dealing with financial risk was very common. With a spur of technology getting advanced day by day, blockchain also got into the banking industry. Blockchain in banking industry helped the trusting factor tied to every party involved in the transaction.
Most of us are linked with some or the other banks. However, in most of the cases, blockchain is seemed to be less adopted. In fact, many of the account holders or people having a bunch of money to spend have no idea about this technology taking over the industry for small uses. This becomes the reason where adoption of blockchain in banking is seen to be a harder fight.
It has been foreseen that blockchain comes with a range of positive and negative aspects attached to it in cases where the banking is involved.
Speed breakers in the way of blockchain in banking
Here we count some of the speed breakers in the way of banking which is constructed by blockchain:
Payments and Procedures
Blockchain has paved their way to most of the industries including retail, logistics, etc. Blockchain finds its way to enter banking industry; which is known for regulating most of the other industries. There comes a reason how blockchain would be easily able to replace the current systems. Talking about it, the first and the foremost reason is, there would be no intermediaries involved in the exchange of the transactions. This, in turn, helps in the free regulations of the all the assets and money involved. Surprisingly, there are two of these platforms that we use every day is thinking about getting closer to blockchain. These platforms are Google and Amazon. These platforms look forward to adopt blockchain for the safety of their users.
Blockchain has a lot to do with tech freaks and coders. There is a shortage of opportunities in many industries where technology is concerned. Technology is known and is seen as something which is an alienated concept to many. Improving all the industries technologically will not only help the youth having more and different opportunities but will also strengthen the Indian industries.
The blockchain is something which is known to be the unbreakable system of chains and cannot be hacked. This feature makes it obvious that it takes a lot of experts to create such a system. The blockchain is, therefore, would have better-minded employees compared to the bankers which are most of the time prove to be inconvenient.
Comparative Study with China
China is nowhere compared to the US or Europe. However, China has cracked noticing that blockchain is in the way of banking facilities and works better than the bankers. There are three of the platforms i.e. Baidu, Alibaba, and Tencent that belong to China which are rapidly getting bumped into blockchain.
Talking about the reason that why blockchain came into existence has a very simple answer. Due to the increase of financial crisis in the market, the blockchain was planned to be constructed in 2009. Not only is aimed at getting rid of financial crashes, but also eliminated the middlemen and all other trust institutions. The main aim was to get rid of the banks in the day to day activities and to replace it with the blockchain.
No middlemen intervention
Entering into the competition of dealing with all the financial institutions and taking their place in the coming years is what is planned by the blockchain developers. The main problem which makes the banking industry less capable and inconvenient is the number of middlemen involved in the single transaction. Also, middlemen make the transaction to be processed in a huge amount of time.
Banks being the centralized system also makes it a comparatively a bad option compared to the blockchain ones as it works with a decentralized system and is having all the data recorded in chains. Every transaction is stored in different blocks. Hence, it is impossible to hack these chains as even to modify one single block all other blocks have to be modified too.
Decentralized and elimination of middlemen makes the blockchain the most competitive system. This competitiveness will replace the banking facilities which is nowadays the most active industries.
It’s for sure that you have heard about blockchain but have never thought about adopting it. We gave you enough reasons for it. Blockchain is what protects you from all the threats that you are vulnerable to working with banks. Do let us know about your views about blockchain in banking replacing traditional banking facilities.