Blockchain Technology Is The Future Of Banks?
Did you know that the bank used to loan grains to the farmers that goes around from a city to another by carrying goods, centuries back? Yup! Appreciating the existence of Google at this point of time.
Okay, I am getting back to the key point. It took us a while to realise that the banking systems now are poles apart compared to the method that bank used to practice centuries ago. For an instance, now banks are being run by loaning money to the public where back then, it was solely relied on grain.
It is undeniable that banks around the world carries a huge responsibility in playing their roles predominantly till to date as they provide a great financial assistance to the people that are in need of it.
The presence of banking industry is extremely important to everyone as it is helpful in term of saving money and providing financial advice besides enhancing the growth of economy.
However, it made many from us to wonder “What is the future of banking industries in 100 years down the road and will the emergence of blockchain technology seen as a threat among the bankers?”. The development of blockchain technology has raised hundreds of questions among the bankers. Do you wonder why?
Let me solve your unanswered questions! Blockchain technology is a system where it will not require an involvement of third party. Every single transaction that will be made solely depends on both parties – the sender and receiver.
Besides that, the invention of blockchain technology has made everything easier over the past years. The existence of blockchain technology allows the transactions to be done in a split second!
However, the same situation does not apply when it comes to traditional or commercial banks. The banking institution commonly requires 3 to 5 working business days depending on its respective country to execute any kind of transaction or business deals that involves a bank.
Have we overlooked that young generation always wanted everything to be done in fast pace?
Therefore, there are chances for the future generation to get adapted to the blockchain technology due to its fast service that can be obtained from anywhere and anytime just by having access to the internet.
The blockchain technology is reliable because the data that has been recorded once can’t be deleted or changed for any cause. Meanwhile, human errors are seemed to be pretty common in the banking industry. The only difference is, either human error caused unknowingly or knowingly and there’s no in between.
It is not sensible to blame the banking industry for human errors if it were made unknowingly as the bankers are responsible to look into numerous type of data besides recording them. A minor mistake that was made by them will lead to a huge error which might result in the act of dishonesty on the eye of public.
It gave some us an insight that the blockchain technology might be helpful in terms of diminishing human’s error.
This advanced technology also has raised concerns among the bankers if their careers will be disrupted in future. I mean, just imagine a bank that has no staff and you just walk into a huge screen that guides you on how to perform transactions in 5 seconds? Well no one knows the answer to that but probably will be answered in future.