I am so delighted and excited making this post to the @crypto-academy community after carrying out serious research on the home work. However, I have participated and painstakingly gone through the lecture material delivered by @gbenga who lectured on Blockchain security 2. The lecture was an insightful,educative and explosive one. In the lecture,I was exposed to things I never knew about and I am very grateful to @crypto-academy for this wonderful lecture. I also enjoin other students to join this community and partake in what is going on in the community. Below is my homework from what I have learnt.
By nature of this homework, it is imperative to know what blockchain is all about.
Blockchain is a decentralized database served and kept in computers. By its nature,no user can remove any blockchain entry.
The industry I will be writing on, is the banking industry. Banking is considered as one of the industries with the largest blockchain. It helps to increase the quality of services provided and also it enhances revenue. However, there is needed high-level of security put in place to save the industry from some much risks. Therefore, the blockchain is the best solution for this industry which is the banking industry.
The benefits of blockchain in the banking industry are;
- It enhances security
- It provides speedy transactions
- It reduces costs
- It increases data quality
- It is transparent and accountable
I will discuss them in seriatim:
- It enhances security: Using blockchain in this industry,it is impossible to record any form of hack, fraud or any manipulation. By this I mean,it is difficult for a third party to have access to the data stored in blockchain. This is traced to the fact that,every device has two keys. These are; the user or private key and secondly, the participants of the transaction. In the former,it is used by one person and it is used during single transaction. This is why no hacker, fraudstars can tamper or manipulate on any transaction carried out on the industry due to high level of security and protection. Blockchain enhances security by,once a data is written,it cannot be changed.
- It provides speedy transaction: Blockchain solves time-consuming processes and maximize efficiency. It abolished and eradicated human based error or mistake with the aid automating them. Because of the numerous and multiplicity of workload in the banking industry, there is need for blockchain software in this industry to increase speedy transactions. Also, there will be no time to waste in verifying and processing of bank statements and transactions. However, with the Advent of blockchain and its development in the industry,it makes transaction to be faster.
- It reduces costs: it reduces costs removing intermediaries. Thus, minimizing the cost that would have been used to pay these intermediaries. Blockchain abolished intermediaries when carrying out transactions between banks. So with blockchain,it facilitate quick and low cost between two parties without any interference from a third party.
- Transparency and accountability: These are the terms that are mostly associated with blockchain. When transactions are recorded, it can be traced by any user of that network and it is easy to verify these transactions. Therefore, blockchain process and watch how efficient transactions are and prevent misuse and mismanagement of assets occasioned by this financial institutions. There is one thing that does not make a system transparent which is centralization whilst decentralization will make it transparent. This means that, its network requires no centralized authority. Examples of blockchain with this decentralized network is Bitcoin and Ethereum etc.
IMPACT OF CRYPTOCURRENCY ON BANK INDUSTRY
The impact of cryptocurrency on the banking industry can not be overemphasized. With cryptocurrency,it is easier to make transactions effortlessly without going to the bank wait in the queue. Individuals store and invest their money on cryptocurrency which yields more money for the individuals than the bank. Individuals can make transactions between themselves without the bank or the government interfering in their business.
Thanks for reading through my piece.
Special thanks to all who put big smiles on my face with Auto Upvote for always being supportive to me 💞💯.
Written by @Justice2550