Steem cryptoacademy week 6:- home work post of homework given by @gbenga professor

Hey there everyone this is @prakhar9675. And this post is penned against the work given by @gbenga professor.

The Security Benefits of Applying Blockchain Withing any Industry, and the impact of cryptocurrency on the industry.

So in this post I will discuss about the benefits of applying blockchain in banking/payment system

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To understand the security benefits of applying blockchain in any industry, we will have to know about the blockchain technology first.

What is a blockchain

As the name suggests, in blockchain technology, there is a chain of blocks. Every block is connected to a specific block. Every block contains address of previous block( in order to get connect with that) , address, timestamp and some information

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In blockchain, every record is validated by a powerful computer which is known as nodes and when a system validates this transaction, this is sent to another independent node to check it again to maintain prefect checks and balances.

How blockchain is secure

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When a information is saved on the blockchain, that information is saved in multiple blocks. And every block contains a part of that information. And along with this information a block contains address of previous block, and timestamp and own address.
When a information saved in a block is changed, it's address changes. And thus the chain breaks.

So in a blockchain, data saved in a block can never be altered or deleted. Even if it is altered by its user, the previous information is also saved somewhere. It may not visible on the surface, but it will be there.

Benefits of applying blockchain in banking sector

By applying blockchain technology in banking sector, the whole banking sector will be changed.

1. Secure:- as we have discussed before, every record is validated by many nodes before transaction, this makes the transaction very secure.
   And also we have discussed that tempering with blocks isn't possible, this also adds up security in blockchain technology.
   
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   If this technology is applied to Banking sector, this would revolutionize the whole system and people's money would be safer than ever.
   
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2. Transparent as we know, all all transactions done on blockchain are open to all. And everyone can check the record. This brings transparency.
   If this technology is applied to Banking sector, this sector would be more transparent and visible to all..

3. Fast speed:- blockchain technology is quite fast and by incorporating this in Banking system, we can make this whole sector faster.

4. Low transaction fees we have discussed in previous post that transaction fees in blockchain is very less than that of in traditional banking sector.
   So we can reduce the transaction fees by incorporating the blockchain technology in this sector..
   
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5. Smart contract- smart contract are executed on a blockchain. And these are self executive in nature. So when this is executed, this can't be changed or altered.
   By using this in baking system, the process of lending money and borrow money can be made easy.

6. Instant settlement. By using blockchain technology, banking sector can settle down many matter instantly because in this every detail is public and can be seen by anyone

Impact of cryptocurrency on banking sector

Use and popularity of Crypto currency is Increasing day by day with leaps and bounds. And one cannot deny that it's usefulness will increase in near future.
Now a day many people are using cryptocurrency to trade, and for transactions as the transaction fees is low with cryptocurrency.

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So by incorporating cryptocurrency in banking sector, the potential of banking sector can be improved significantly.
The use of cryptocurrency in banking system, will make this system very fast, transparent, and without boundary.

As in traditional banking system, the transaction fees when the transaction is for a abroad country, is very high or not available easily. But one can do this easily using cryptocurrency. As cryptocurrency has no political boundaries so it can be sent to anyone at anywhere in the world.

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And in cryptocurrency, every record is public and never deleted, this can bring transparency in the sector..

Why use of this may be cautious

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As we have discussed many merits of usage of cryptocurrency in baking system, the usage of this may be cautious.

It's KYC concern, unregulated nature, no taxation laws made it very cautious for baking sector to include it.

But we hope in near future, these caution will be overcome and sufficient laws will be made to make this happen ( incorporation of cryptocurrency in banking sector)

Conclusion

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Usage of blockchain and cryptocurrency can revolutionize the banking system and make it user-friendly and also easy to use.
But for this, many laws and regulations should be made and certain changes should be brought in order to make it compatible with Banking system like laws for taxation in cryptocurrency and similar..

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@gbenga
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