Oct 22, 2018 at 12:37
Oct 22, 2018 at 12:57 UTC
7 Differences to Know Between Blockchain and a Banking Ledger
In ancient times, the records of economic transactions were maintained on clay, rocks, papers which eventually changed by inventions of computers. With evolving time, every technology offered great convenience, comfort, and speed. New innovations are promising, secure, fast, and decentralized in nature-changing the traditional values of ledgers.
Blockchain and banking networks both have ledgers involved but still are different in many perspectives. A blockchain is distributed digital ledger while banking is a central ledger in digital or physical form.
Let’s dig into the article to find how blockchain is going to prove a revolutionary technology in modifying banking transactions.
The blockchain is public immutable completely decentralized global ledger, meaning that for any type of digital transactions there is no involvement or trust of the third party like banks, government.
Whereas all banks transactions are facilitated by trusted third parties like other banks, governments, and other intermediaries.
Blockchain manages to transact 100 percent confidence because of its open source nature. The data’s, transactions are public with the owner’s consent. Every transaction has a copy and any relevant information can be viewed by interested individuals. The information and transactions are in control of users and owners.
A traditional banking ledger is kept isolated, private and closed. The financial institution manages the viewership of records for the general public.
As there are no third party intermediaries involved, no cost of exchanging assets from one place to other or between individual sources and recipients, blockchain has a reduced lot of transaction expenses.
- Free from frauds
Blockchain hacking is difficult because at one time it requires hacking every computer involved in the same function.
The bank’s transactions are controlled by various intermediaries and an action by anyone with malicious intentions can be taken without your consent.
- Easy to use
It is a multi-skilled and more adaptable than central banking ledgers. Also more programmable as in the case, to add any new features or functions on the blockchain, it can be easily innovated with the existing software through consensus.
The regulations and restrictions on central points make it difficult to the same for central banks.
- Error resistant
Blockchain technology is immutable meaning that data can’t be tempered, altered and deleted reducing so many error zones. It cannot be erased, lost and can keep track of all the transactions without the fear of even getting seized. It is resistant to tempered and is irreversible.
In banking ledgers, it can be edited, deleted, modified and is reversible.
- Accessibility across the world with internet in less time
The participation of anyone in blockchain is permission-less, around the world.
It takes days and a lot of time by the banks to clear transactions and reach final settlements. Blockchain transactions have the potential to work in minutes and are processed 24/7.
In blockchain data is complete, consistent, accurate, and widely available. Many banking sectors are absorbing blockchain technology for better grip to transactions. A new revolution is marking its way.