Have you ever had the experience of transferring an amount to someone or to pay off something and it takes some time until the money is being sent over? It is such a slow process sometimes it is difficult especially when it is a sum of money that is in need to be fast and yet transferring this amount of money is slow and a hassle. It will only be fast if you go all the way to the bank and deposit the amount of money directly into the bank of the other party. What a hassle right? So troublesome right? But what if there is a solution for it? Yet this solution also brings some other benefits along with it. Is this not something good for all of us as the user as well as the bank? This is something that we need especially when everything is digital and fast moving nowadays it is a need to keep up this pace.
There of course is such a technology but what is it? What can benefit you and me in this ever growing ever faster world of ours? What can make money transfer faster than ever yet secure as ever? The answer is Blockchain.
Most of us would already know what blockchains are. But for those who may not understand it well, this is what blockchain does. Blockchains are data that is stored in a block. Data that is stored in this block when capacity is full then will be linked to the next block and so on creating a chain. All this data is secure and is decentralized records of transactions to make it as well as transparent and yet secure and act as a record for all transactions being made. Therefore blockchains literally means chained blocks of records. Hence, Blockchain. But what does it do for the banking industry to help you in your fast and secure transactions?
There used to be something called a ledger. This is where all the records of in and out, from here to there. Everything is recorded in there but because there is a need to be transferred and ask for approval this method of transaction takes up a lot of time but what if this ledger is all done online? This is where blockchains come in. Blockchains are data that is stored likened to the ledger recording from one point to another all the transactions that have been done. All at the speed of electricity. Everything is clear and transparent as well as secure. This would be a total revolutionary event with the use of blockchains. For more detail on how this works. Company A wants to send money to Company B, The transaction liken to the ledger is recorded as a block online, Block is then broadcasted to the network, Those in network then approves the transaction, after the approval and validation of the transaction it is then added to the chain which is not removable and is transparent, then finally the money is sent to Company B. All these steps are done in a very fast yet secure way and are transparent.
Now then we can see why blockchains are the future of banking. This is the way to have your transaction done fast and secure and transparent all at the same time. This is the technology of blockchain in banking.
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