Crypto Academy Week 6// Blockchain Security (Part 2)// Homework post submitted to Gbenga
Wonderful lecture @gbenga on blockchain Security 2.
When a system is well secured, it become readily accepted by people. This is case of the blockchain, it has proven to be secured and cannot be altered.
The blockchain was naturally intended for safe, trading and operationality of cryptocurrencies but Alot of industry have discovered that blockchain can do just more than cryptocurrency.
Blockchain adoptions in various industries such as the banking and finance, government, pharmaceutical, just to name a few, have increased security in industry to a large extent.
Recaping from previous lecture, blockchain operates as an open ledger which is decentralized, meaning the central authority or operator is ruled out completely. The ledger contains series of transactions which are verified/authenticated. They are very safe and secured as data are being verified by series of computers.
One of those industry benefiting from the blockchain is the banking and Finance. They do Alot of data recording, account opening, cash movements, so much now. Most times documents may be manipulated, there could be planned attack on the bank, there could be human error as well.
The blockchain which works as an open source comes into fill the gap. it is able to store data and since it's decentralized, it means data regarding transactions cannot be manipulated, with the blockchain in place, human errors are reduced to zero. Informations like account informations will be secured and accessed by just the owner of the he account. The blockchain makes provision for private keys and the public keys to give you access to your funds.
Banking systems usually involves movement of physical cash from one point to the other which poses great security risks to the bank and even the employees, with blockchain introduced, transactions cannot be bridge, money need not to be moved as they can be sent digitally, however, verification on the blockchain occurs in seconds.
Another very important aspect in the banking sector is hand written signatures which may be irregular at times, without a signature its assumed the account is not yours and funds cannot be accessed. The blockchain introduces a more secured way to access your account without having to practice your hand written signature Over and over again.
Transparency is another important contribution of the blockchain, being an open source ledger implies anybody can view your transactions and if there were any issues, it can be sorted out immediately as informations on the blockchain ledger cannot be manipulated or altered. You can be sure of the informations being provided because it need no central body to control it.
What could be the impact of cryptocurrency on the banking and finance industry
Cryptocurrency are digital currencies and like I said earlier, cash are moved from one place to the order. Cryptocurrency could really play a very important role in this aspect. Instead of going through this risk, a digital transfer will be more preferable and security enhanced.
Cryptocurrency transactions uses the blockchain ledger, they are fast, transparent and secured. Bank transactions often takes so much time, account verification still another serious problem, but with cryptocurrency, accounts transactions can be verified in seconds.
Conclusion
The banking and finance industry is gradually growing and they are seeing the need to move into the blockchain system. It is safe, transparent and very secure platform.
Thank you sir.