Blockchain technology is revolutionizing the banking sector by allowing faster, more secure peer-to-peer transactions without intermediaries. It reduces fraud by creating an immutable record on a distributed ledger. Implementing blockchain brings benefits like lower transfer fees, faster international payments, improved know-your-customer compliance, and more transparent lending and trading markets. While transitioning entire banking systems to blockchain poses challenges, it has potential to significantly enhance functions like payments, loans, transfers, and fraud prevention.

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2.  Blockchain technology is taking the internet
technology and even banking by storm at the
present time.
 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
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3.  Banking is one of the prominent sectors to adopt
the blockchain technology.
 Blockchain is a combination of cryptography and
shared database which allows multiple parties to
have the transaction simultaneously through a
constantly updated digital shared ledger.
 It is a kind of technology where the transactions
happen in a peer to peer system.
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4.  The transaction over a blockchain eliminates
the role of a financial institution which presently
acts as a mediator for transaction.
 It eliminates the chances of fraud even there is
no third party to authenticate the transaction of
fraud.
 Money transaction is definitely the prime
function of a financial institution but it is not only
the function which a financial institution needs to
perform.
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5. Blockchain implementation would not only
make the transaction easier but it will make the
banking faster and safer in different ways.
 There are so many advantages of
implementing blockchain in banking and it can
be advantageous for both the banks and its
customers.
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6. Fraud reduction:
 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.
 In the traditional 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‘ve been able to bypass these
security systems and make a data leakage.
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7.  In contradiction to that, blockchain is
decentralised and it is less prone to this type of
fraud.
 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.
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8. Know your customer (KYC):
 The very important thing in the banking industry is know
your customer. KYC processes requires the banks to
validate and verify primary documents as a part of the due
diligence protocol.
 As per the blockchain, once a bank receives a new
customer and authenticate his identity, the bank can save
the KYC document in a blockchain.
 The same KYC documents can be used by other
authorities and the person would not be needed to repeat
the same process of KYC for a new authority.
 The data or the blocks added in a chain can never be
tempered. So the authenticity of the data is an assuredhttps://www.scalablockchain.com/

9. Cheaper and secure payments:
 Blockchain is a faster, safer and cheaper alternative
to bank payments. It eliminates the need to rely on the
intermediary like bank to approve the transaction.
When a third party like a bank comes to a picture, it
takes a transaction fee from both the sender and
receiver.
 Previously, one needs to pay a higher charge for the
transaction and the processing fee and also you need to
follow certain rules and regulations which are set by the
financial institutions.
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10.  When a transaction is done through blockchain, it makes
you get rid of all those issues.
 Blockchain provides peer to peer payments where no
intermediaries are required hence one need to bear a low
transaction fee.
 This technology provides cheap, fast and borderless
payments across the world.
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11. Trading platforms:
 If a bank starts using a blockchain for trading, the whole
process will become much faster and secured.
 Blockchain offers a new medium to exchange the assets
without centralized trusts or intermediaries which are free
from the risk of double spending.
 Blockchain will minimise the operational risk as all the
transactions are transparent and immutable. The record of
transaction will be there permanently and can be used for
future reference.
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12. Monitoring of consortium accounts:
 The most important application of blockchain
technology is to prevent the diversion of funds.
 The funds which are at end use will not be tracked by
the lender as the borrower makes multiple transactions in
moving funds from one bank to another.
 It helps monitoring the end use of funds of a borrower
funded by a consortium of banks. It leads to the reduction
in Non-Performing Assets (NPA) as the banks can have an
eye on the end use of the funds.
 The information which are related to a movement of
funds is made available to all group members and it helps
strengthening the monitoring mechanism.https://www.scalablockchain.com/

13. Fast paced financial transaction:
 Most of the third party transactions in the banking
industry consume lot of time; this may range from few days
to even weeks.
 These transactions are taking place via payment
gateways that can be better replaced with blockchain
technology.
 It offers a opportunity for a real time payment solutions.
The blockchain takes only a few seconds to complete the
transactions.
 This would eliminate the third party payment gateways
and results in fast paced financial transactions.https://www.scalablockchain.com/

14. Loans and credit:
 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
worthiness 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 trans-union or CIBIL.
 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 creditworthiness of an individual.
 In order to resolve this issue, banks can use the
blockchain to avail the authenticate data about a potential
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15. 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.
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16. Final thoughts:
 It is undeniable that banking industry is
appreciating this blockchain technology but
implementing the same in a day to day function of
bank is a matter of serious concern.
 Changing the whole banking system is not an
easy task. All the major functions of banks can be
performed through blockchain in a more
convenient and a better way.
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17.  Blockchain brings more transformation in the banking
sector since it has the potential to disrupt the traditional
business models and makes it obsolete.
 This way would help reduces the time, effort and cost in
interbank transactions.
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blockchain related projects. The excellent support will be
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