In the Normal banking system, the data is saved in a central database which is easy to hack. Cyber criminals and hackers are well aware of evolving the digital technology and have been able to bypass these security systems and make a data leakage.
Nowadays an enormous problem is faced by banks and financial organizations which can be solved by Blockchain
The blockchain is considered as the heartbeat of a financial sector by the world economic forum which indicates that this technology plays a significant role in the financial sector. Technological revolution changes the banking sector at its best.
The best thing about blockchain is that it is a decentralised database. It is not like the centralised banking database, the data in the blockchain is saved in a distributed ledger.Banking industry with blockchain makes a real time execution of payments and an absolute transparency would enable real time fraud analysis along with the prevention of the same.
High level of security in storing and transmitting data, open and transparent network infrastructure, decentralization and low cost of operations are possible by Blockchain technology.
These impressive characteristics make blockchain a really Thrust full and in-demand solution, even in the extremely conservative and restricted bank industry.
For recording the transaction of assets in which the transactions and their details are recorded in multiple places at the same time we use Distributed ledger technology (DLT). Distributed ledgers have no central data store or administration functionality.
Deposit, withdraw and transaction: The best thing about blockchain is that it is a decentralized database and the data in the blockchain is saved in a distributed ledger so the Deposit, Withdraw and transaction of the money will be stored in the Distributed ledger, so its not a easy task for the hacker to hack the system.
Blockchain can be used for loans and credits in two different ways: The very first use of a blockchain in the lending industry is that a lender can check the credit goodness of a potential borrower through a blockchain. Before the lending process, the lender checks the credit score, income to debt ratio etc,. for which they need to depend on the credit bureaus like Equifax, Experian, and Trans Union. Those credit bureaus save the data in a centralized database which is vulnerable to get hacker and this would have a direct effect on the credit card worth of an individual. In order to resolve this issue, banks can use the blockchain to avail the authenticate data about a potential borrower.
The other use of blockchain is that with the help of a blockchain a loan seeker can avail a loan through peer to peer lending. In this method of lending, the lender is just another person instead of a lending institution who can
check the credit worthiness of the loan seeker through the blockchain and provide a loan.
Being one of the best Blockchain Banking solution provider using Distributed ledger technology (DLT) in India, it is our responsibility to check for updates and gathering feedback about our earlier projects to make sure our upcoming ideas will reflect in secured way of transferring data.
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