The Collaboration between Blockchain and Bank Digitization
Nowadays everything is getting digitized, from education to money. Digitization of banks is one effective initiative by Governments and private banks. Still people are not happy with their services. It is like when we were using 2G network and we wanted faster network. And now we have LTE but still we are getting hungry for the speed. In banks the problem is the delay it makes during the transactions are made. Thanks to people who built Blockchain, a perfect solution for this network.
Yes, blockchain comes as blessing for the banking industry. It can eliminate the delay that bank causes when you transfer money from one account to another. But to eliminate a problem one need to understand it first. So the problem with traditional bank is data structure. Our traditional banks uses centralized data so if any transaction is made only bank is there to verify it. All the traffic coming through this go through on system. This makes delay in by some time in sending and receiving money.
Now if we apply blockchain network to the bank it will change the whole scenario. Why? Because blockchain works on the decentralized data network. It make data copy on every system in a very synched and secure more. This security of data done by the cryptography. Now the data is secure it is spread into every system on the network. Due to encryption it can’t be altered by other member or system. Now because data is available on different system is take so much less time in transaction. The details will be updated on same instance as transactions takes place.
This distributed ledger gives every member of the network same database. But access to this database is decided by the keys made by the network. It is like of you buy house then your retailer will save the data into their data base. This data then will be sent to bank, insurance company, contractor or government. So if there is any update in details done by retails thereafter it will not change others data. So this will make confusions and misleading data. This misleading data produce complication in transaction.
There comes the role of blockchain. As in traditional network everyone can alter data at their end. Now assume this whole system is on blockchain. So as you make purchase of house same detail that estate agent have will be delivered to all in same manner. Update in the data from any end will be reflated back to every copy of it on the system. By this way there will be no misleading data, no time delay in transactions.
Any changes made in the data it will append itself as new and will make a copy of old one. This way it keep track on the data or the network, who and when anyone made changes in it are all recorded. With this sharing different party will share same bond and this will make strong trust between parties. From the Bitcoin to now something extraordinary. Bitcoin have evolved into a technology that will change everything in near time.