Steem Crypto Academy Week 6 Homework Post for @gbenga//All About Blockchain Security 2

Hello Steemians,
Welcome to Steem Crypto Academy Week 6.
I will be talking about the task: The Security Benefits of Applying Blockchain Withing any Industry, and the impact of cryptocurrency on the industry.

Blockchain technology is creating a quiet revolution in many areas beyond financial. It is mastered by representatives of various industries: automobile and insurance companies, government organizations, retail chains, and others. Major players from different markets are joining alliances to create cross-industrial platforms for more secure interactions.

Source

The main advantage of blockchain is that the technology allows you to record and store data in such a way that it will be almost impossible to falsify or distort it. These data are saved on all participants' computers at the same time. To fake any record, at least 50% + 1 of the computers connected to the network would have to be hacked. Attackers are not motivated because an attack by hackers is complicated and expensive. Therefore, blockchain is considered a very reliable way of storing data.
Taking the blockchain in banks, for instance.........

Blockchain in the banking industry & the security benefits

Banks serve to securely store and transfer valuable assets. The blockchain, being protected by a digital ledger, can perform these functions. So in the coming years, we should expect a strong influence of the blockchain on the banking industry. This technology will allow banks to save about $ 20 billion by eliminating intermediaries in transactions.

Once the data is saved to the blockchain, it cannot be changed or deleted. This allows the blockchain to be used as documentary evidence or proof of the transfer of digital assets. Immutability allows the use of blockchain to prove the compliance of processes with regulatory requirements - recording all actions and results obtained in the blockchain can serve as an audit trail for regulators.

Blockchain is promising from the point of view of anti-money laundering (AML) and the "Know Your Customer" (KYC) procedure. Now banks and financial institutions must take multiple measures to verify each new customer, and the process of collecting and verifying information in some markets can take several months. If the necessary data were already in a hacking-resistant distributed database, then many of the currently required processes could simply be abandoned. The blockchain is ideal for this because any changes in customer data will be instantly disseminated to all participants in the blockchain. The blockchain can also provide records of compliance of individual actions of each client with regulatory requirements. Besides,

Another use case for blockchain is the creation of a system for managing user personal data. The use of blockchain allows KYC / AML processes to be reduced to a simple automated verification that the corresponding system could carry out on a market-wide scale. The exchange of confidential customer information between financial institutions will likely become the norm once trust is established in the blockchain ecosystem.

Source

Impact of cryptocurrency on the banking industry

Initially, all buzz about cryptocurrencies was simply overlooked by banking. They seemed like one of those ideas, like the dot-com bubble of the 1990s, to be forgotten soon.
The world is increasing in popularity with Bitcoins, Ether & Ripple. Thus, the banking sector begins working with them gradually.
Even though bitcoins and their "relatives" of altcoins are just waiting for regulation, some companies are already working with them.

For example,

1. The American USAA (United Services Automobile Access Agreement). Through its application, you can invest, transfer funds to a bank account or pay for insurance, and much more.
   The company's management has a reasonably strong interest in cryptocurrency. For example, USAA allows not only using bitcoins but also checking the balance of your crypto wallet on Coinbase.
2. It was recently made public that Julius Baer, one of Switzerland's largest private banks, has decided to allow its customers access to crypto assets. This was announced on the official Twitter of the organization.
3. Another American bank is Simple. They works with various crypto-exchanges and enables their clients to buy and sell cryptocurrency.
   At the same time, such deposits are insured with the Federal Deposit Insurance Corporation (FDIC), which guarantees investors for the safety of their funds.

That is, bitcoins and other assets are gradually entering the banking system: very soon, it will be possible to invest in them, like in bonds and stocks. At the same time, the owners of the crypto-business in the near future will be able to use banking services on a par with other business owners.
This means that cryptocurrency is "settling" more and more firmly in the global economy.

Thanks for read my post.
Special thanks to Prof @gbenga for his lecture. It is a very interesting topic

Cc: @gbenga
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