Page 37 - Banking Finance February 2025

ARTICLE

Future of Banking-

Blockchain

Technology

Gautam Bose
Manager (Research)
State Bank Academy
Gurugram

Abstract
A Ab s t r a c t
bstract
A Abstractbstract
Blockchain banking is a new technology in India, but it's gaining traction due to its worldwide success in finance
and other sectors. The Indian government recognizes its potential and is investing in research through the Centre
of Excellence in Blockchain Technology. However, challenges like regulation and data privacy need to be
addressed.

"The blockchain symbolizes a shift in power tamper resistant. As there's no central repository that can
from the centers to the edges of the networks." be compromised or manipulated, data is secured.

Digital: Blockchain is inherently digital, as it relies on digital
This quote is stated by a blockchain investor named Mr.
signatures, cryptographic techniques, and digital records to
William Mougayar. Mr. Mougayar is author of The Business facilitate and secure transactions. By digitizing transactions
Blockchain, a bestseller.
and assets, blockchain enables new possibilities for
automation, efficiency, and innovation in various industries.
What is a Blockchain?
Blockchain is characterized by its three D's: decentralized, These three characteristics-decentralized, distributed, and
distributed, and digital. digitalized-form the foundation of blockchain technology
and underpin its transformative potential across diverse
Decentralized: Blockchain operates without a central applications, from banking & finance and supply chain
authority. Means there is no need to rely on a single entity management to healthcare and voting systems.
for verification or recording of a data. Blockchain distributes
this responsibility across number of nodes. There is no single Blockchain technology means data stored in blocks and
point of failure, so decentralisation enhances security and linked together with a chain. Data in blocks are hard to
reliability. Trust and transparency is also there since change once stored, to be precisely immutable, thanks to
transactions are publicly recorded and verifiable. system's built in security features. These decentralised
blocks are interconnected with each other through a link
Distributed: The data on a blockchain is stored across known as cryptographic hashes. Main feature of blockchain
multiple nodes in a network. Each node maintains a copy of is that data is decentralised and is time stamped and is
the entire blockchain, ensuring that the data is resilient and prone to alterations. In other words, A blockchain is a

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