Blockchain Will Replace Bank

It is no longer news that our day to day lives have been greatly influenced by technologies that require internet services - ability to communicate with someone miles away from you, easy access to global news etc. However, one thing the internet hasn't been able to influence or changed is the process involved in our money transactions.

Granted we can receive and make payment via the internet using our mobiles, but such transactions still require our financial institutions acting as middlemen to monitor and verify the whole process. The implication is that we still get to pay huge fees for transactions, experience a human error in the transaction process and so on.

As a result, we have dreamt of better ways to carry out our online money transactions for such a long time. And finally, the invention of blockchain by “Satoshi Nakamoto” appears to be the long-awaited solution to the way our online money transactions are processed globally.

With this, the world is set to witness the most influential advancement in technology within the next few decades that will provide a solution to some of the major global challenges of today.

What exactly is a blockchain? You may want to ask.

Blockchain is a book of final entry or a digital ledger used for recording bitcoin transactions or transactions made in any other form of crypto currency and it requires powerful globally networked computers for sharing data amongst all its users across the world.

Each networked member is capable of securely adding to the ledger without any middleman or centralized authority because it makes use of cryptography. And every networked computer gets to see the transaction of any transfer or online payment made to the ledger and it is instantly verified with the use of a software from an open source.

This is then preceded by the storage of all the data that pertains the transaction in a segment called "block."

Digitally stacking of each block in a sequential chain is the next step that follows and it gives birth to the name blockchain.

Having known what a blockchain is, shall we now take a look at some of the ways or reasons the blockchain could replace bank?

(1) While the blockchain software and network automatically verify transactions, banks carry out manual verifications to authenticate the transaction process.

(2) Two outstanding characteristics of the blockchain are transparency and reliability. This is because the software of the blockchain is capable of securing itself by utilizing the combined processing power of the computers that are networked worldwide, rather than leaving the task of searching for fraud and errors to humans.

(3) Any transaction saved to the blockchain can't be altered forever and can be seen by everyone.

(4) Individuals are already using blockchain to order for goods, pay for services and also transfer money to one another instantly online - without any fees with the use of bitcoin or other cryptocurrencies. Although, a middleman is needed for the conversion of the cryptocurrency to dollars.

(5) Records on mortgage contracts or property ownership is locked or secured by a process of the blockchain, thereby clarifying title, ownership and getting rid of mortgage treachery.

Conclusion:

As the world continues to advance in digital technology, there is no other time we need technology that offers accountability, trust, and security than now. And with the aforementioned features, blockchain can be said to be that technology.