Blockchain technology is completely transforming the function of traditional financial institutions: from how payment transactions are made, through to how money is raised on private markets.
The very nature of the centralized data that banks currently use is one of the major reasons behind the delays that we must all deal with when transferring money. Under these circumstances, processing and confirmation checks are required for every detail in the transaction before money can transfer from one account to another.
Due to its distributed ledger, however, blockchain allows the other side to receive the transferred money from the very moment it is transferred, and simultaneously update the database for all the parties.
Blockchain brings everyone to the highest level of accountability by ensuring that the data is reliable, secure and well synchronized amongst all the participants in the transaction. There are no missed or delayed transactions, no human or machine-made errors, no transactions are done without consent from all the parties, or any mismatch and discrepancies in the past data. Blockchain, as a mechanism, is totally transparent and incorruptible.
Blockchain’s ability to assess many different data points without actually revealing the information means that banks can closely track the required information and run computations on it without taking the risks of storing the information themselves.
It is indisputable that the relationship between banking and blockchain will remain harmonious. The Head of Innovation for State Bank of India, Sudin Baraokar, predicts, “By 2030, traditional banking services could cease to exist with Blockchain. All services of banks can be replaced by Blockchain.”
How We’re Making The Most Of This Technology
Industry 4.0 will create substantial efficiencies for companies all over the world. However, a lack of device security and standardized data exchange makes implementation difficult. The Augmate Connect Infrastructure Platform plus IOTA’s blockchain-less tangle and micropayment approach unifies the tools and processes for the fourth industrial revolution. This is accomplished through secure transactions that aggregate and create accessible (yet tamper-proof) records.
Click the link here to read more about our unique platform, and how it can help your company engage with the fourth industrial revolution.