BLOCKCHAIN IN

BANKING INDUSTRY
AUTHOR AND CO-AUTHOR
1)VARSHINI. S
2)MEGHA. S
ABSTRACT
This paper highlights blockchain's impact on banking, focusing
on decentralized trust, immutable transactions, and heightened
security. It explores its role in streamlining processes, expediting
transactions, and reducing costs. Advantages encompass
decentralized trust, enhanced security, cost reduction, and
improved efficiency. Challenges like resistance to change persist,
but solutions through regulatory compliance and scalability are
emerging. As financial institutions adopt blockchain, it promises
to revolutionize banking, fostering innovation and efficiency.
INTRODUCTION
In today's era of rapid technological progress, blockchain emerges
as a transformative force, especially in banking. With its
decentralized and transparent framework, blockchain promises
secure and efficient financial transactions. Beyond cryptocurrencies,
blockchain streamlines banking processes, enhances transparency,
and reduces costs.
OBJECTIVES
■ To understand how blockchain technology is reshaping the
banking industry.
■ To identify the challenges associated with implementing
blockchain technology in the banking sector.
■ To trace the development of blockchain from its origins to its
widespread adoption.
■ To highlight the benefits of blockchain for banks, including
improved security and efficiency.
HISTORY OF BLOCKCHAIN
■ Genesis of Blockchain (2008): Satoshi Nakamoto's ,Bitcoin Creation.
■ Early Development (2009-2013): Emergence of Bitcoin, Expansion of
Cryptocurrency Ecosystem, Introduction of Altcoins.
■ Recognition of Blockchain Potential (2014-2015): Digital Currency, Ethereum
Launch.
■ Mainstream Attention (2016-2017): Ethereum's Rise, Initial Coin Offerings
(ICOs).
■ Correction and Consolidation (2018): Cryptocurrency Correction, Focus on
Fundamentals.
■ Enterprise Adoption (2019-present): Enterprise Interest, Research and
Development.
 ROLE OF BLOCKCHAIN
Blockchain technology has transformed banking by enhancing
security, reducing costs, and improving efficiency. It enables secure
and transparent transactions through decentralized ledgers, mitigating
the risk of fraud and enhancing trust. Additionally, blockchain
facilitates faster cross-border payments and enables real-time tracking
of transactions, leading to improved customer experience and
operational effectiveness in the banking sector.
ADVANTAGES OF BLOCKCHAIN IN BANKING SECTOR

■ Decentralised Trust: Blockchain's key advantage lies in its method of

verifying and tracking transactions, allowing for processing without the need
for intermediaries or central oversight
■ Enhanced Security: Once data is recorded in a block, it cannot be retroactively
altered, ensuring inherent security. Digital signatures governed by strict
cryptographic rules reduce fraud risk.
■ Decreased Costs: Blockchain's distributed ledger approach decreases
transaction fees by eliminating intermediaries and overhead costs.
■ Increased Efficiency: Blockchain eliminates errors and duplication, ideal for
streamlining digital processes. Intermediary removal reduces settlement time to
seconds and transaction time to minutes, enabling 24/7 processing.
CHALLENGES OF BLOCKCHAIN IN BANKING INDUSTRY

■ Resistance to Switch: Resistance to change is a standard challenge in any

enterprise, including banking. Workers and stakeholders are hesitant to adopt
blockchain technology due to job relocation, uncertainty, or concerns about the
reliability of the technology.
■ High dependence on computers and power: Blockchain implementation will
need computers. Therefore, problems affecting computers, power, and viruses
can greatly affect the blockchain system.
 THE FUTURE OF BLOCKCHAIN IN
BANKING INDUSTRY

Blockchain technology holds great promise for the banking

industry, offering transparency, security, and efficiency in financial
transactions and data management by providing, regulatory
compliance, scalability, implementation costs, data privacy,
interoperability, adoption, and resistance to change are all current
hurdles.
CONCLUSION

Blockchain, initially seen as a disruptor, now garners interest

from traditional financial institutions. Despite past skepticism,
banks recognize blockchain's benefits. Its applications promise to
enhance banking operations. Looking ahead, blockchain solutions
may exist outside the traditional system, marking a successful
challenge. Embracing blockchain is crucial for banks to thrive in
the digital era.
THANK YOU