Blockchain Technology- Making Banking Transactions More Safe and Secure
Nov 12, 2017 Posted / 10335 Views
Recently, at a financial services event, top-notch cybersecurity specialists threw light on how the bank employees social media activities is paving way for cybercriminals to attack their bank with utter ease.
As the cybercriminals continue to unearth ways of making money, it is global banking system, which is facing some real threats. With a dilemma, it is quite fair to proclaim cybercrimes is at its all-time high, as it is tough not to find a headline of either a money security breach of an organization or the money in the accounts of a major bank being flushed. In fact, a year back, a survey titled PwC’s Global Economic Crime Survey 2016 revealed that the cyber attacks have now reached a record high, 1ith approx 54% of organization hit badly by cybercriminals in the last two year. This figure throws light on the truth that how big a business of hacking has become.
Banks has always been an ocean possibilities for cyber hackers to put their skill into practice. And, the recent cyber attack on the Tesco Bank, a top-tier bank, whose 2 million Euros were stolen from customer accounts. The DDoS attacks on top banks like the HSBC have halted its growth in the recent year. Furthermore, phishing traps for customers are further lowering the level of trust between customers and the banks.
The revolutionary advancement since the emergence of the Internet, Blockchain will back the world’s financial industry to save $20 billion every year by 2020.
Commonly known as the distributed ledger technology, the Blockchain is the is the core technology, which creates shared transparent ledgers of entries that cannot be modified. In earlier days, the developers worldwide thought of this technology as a centralized means of keeping track on financial transactions, without any third-party authorization. Instead, this technology turned out to be a way to toss the central authority or any federal reserve out, to build decentralized networks where multiple users confirm the transactions.
The Blockchain hit the seashore of global financial industry like a tide, with the launch of Bitcoin, the first cryptocurrency. This electronic money made the best use of the Blockchain ledger to record the timestamp of every financial transaction.
Experts across the globe believe that the blockchain technology is a safe, secure, and convenient alternative to the current time-consuming banking model. And, this concept is gaining traction, as major world banks are testing its operation. For example, some banks are researching on how to reduce the number of participants in a financial transaction for better security. Top banks, including UBS, Goldman Sachs, and Morgan Stanley, recently put forth a research report on the implementation of the blockchain technology on the banking ecosystem. The study thoroughly touched the technical aspect of the blockchain powered banks. A few banks worldwide have also their own blockchain-based platforms or partnered with a firm like the Fintech Partners to enjoy the perks of the blockchain.
The bottom line is, a number of large banks, are understanding the significance of the technology, Blockchain has in store for the banking landscape.
Cybercriminals have uncanny ability to bring down networks, tweak the data stored, and lure the users in cyber pitfalls, steal, and spoof personal identities, and carry out disastrous cyberattacks, all thanks to the single point of failure for centralized networks. The blockchain technology provides an alternative approach to storing and sharing information in a decentralised manner, without the need of a centralised authority, thus, a way out of the above security mess. The same technology has powered cryptocurrencies like the Bitcoin and the Ethereum to glory. The blockchain technology has enhanced the security aspect of a network on all free fronts: protecting the identities of users, Abstaining cyber attacks, and tampering with data.
In a blockchain network, the data is public, no secrets, like other networks, therefore, the reason behind the enhanced security of this network.
Compared to a centralised network, the decentralised network based on the blockchain technology is more secure. As, here, there is no single point of point of failure, there are multiple, in great numbers (thousands). So, in order to make a cyber attack successful on a decentralised network, the hacker has to get hold of every computer storing the financial transaction data, in one single go, which is absolutely next to impossible.
Wrapping up, from the above it's quite true to say blockchain is the way for banks to provide safe and secure banking services.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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