10 Banking and Finance
10.1 Banking and Investment
A close review of the distinctive features of blockchain makes it clear that the banking industry can effectively adopt this technology. Perhaps, the very purpose of setting up the banking industry has a lot in common with the nature of blockchain. Banking institutions came into existence to make all kinds of trade and commerce possible by connecting groups of people together. Blockchain has the potential to implement this concept on a global scale with complete security, integrity, and transparency.
It can make business more efficient by introducing streamlined and automated processes in place of manual and paper-based processes. Therefore, blockchain is more than just the underlying technology for cryptocurrencies like Bitcoin or Ethereum.
Blockchain, in the credit and debit industry, makes it easy for remote untrusted parties to build consensus on the state of a database, negating the interference of gatekeepers. It is a bookkeeper that conducts all financial transactions, such as payments, settlement systems, fundraising, securities management, loans, credit and trade finance, etc. without being subject to any government, organization, or institution.
10.1.1 Identity Authentication
Banks cannot conduct online financial transactions without identity verification. However, there may be several different steps in the verification process that consumers may not like. This can be face-to-face verification, a form of authentication ...
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