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Friday, May 7, 2021

Blockchain Technology: Changing the Security Landscape for Banking Services

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The banking sector is now witnessing a massive transformation due to the emergence of blockchain technology.

Blockchain, the underlying technology behind Bitcoin is evolving at a rapid pace, especially in the finance sector. From settling payments to cost-effectiveness and immutability, the technology is already making its place in the jobs market.

The technology also holds the potential of addressing multiple challenges related to online transactions like currency reproduction and double-spending.

The worldwide spending on blockchain solutions will be valued at nearly USD 15.9 billion by 2023. Also, by 2027, the blockchain market is predicted to reach USD 69.04 billion. Considering these statistics, it is evident that the blockchain industry is set to disrupt the finance sector. Not to mention, professionals with blockchain skills will be in high demand.

Blockchain to transform the banking sector, how?

  • Protects sensitive record

The technology can authenticate the identity of its user. This takes place through the Keyless Security Infrastructure (KSI), this helps in preserving the data hashes in blockchains and further runs the hash algorithms to verify its user.

The KSI hereby eliminates the need for a middle man. If any data is being manipulated, it can be easily detected since the available hash is present on other nodes that have been linked to the system. Now if a bank needs to gain access, it needs to move beyond the asymmetric encryption.

  • End-user protection

Simple login is something that banks are vulnerable to despite having proper cybersecurity. Well, this is because most of the passwords used are weak thus attracting cyber threats to penetrate within the system. With the help of blockchain, you can easily enable the authentication of the users and devices without the need for a password. How? The decentralization of the network provides a consensus between different parties by verifying it via blockchain-based SSL certificates.

  • Boost security of Internet of Things (IoT) devices

You will find a certain number of block-less distributed ledgers that specifically boost security even for the IoT devices.

Any devices present in the network can easily interact with other devices in a peer-to-peer manner without the intervention of any third-party authority. This is highly complimented using two-factor authentication. The two-factor authentication feature provided by blockchain offers unprecedented security to the surrounding network.

  • Secured internal communications

Most companies are prone to data leakages due to the lack of end-to-end encryption. Blockchain as technology emerged as one of the most in-demand tools that minimize future risks. The blockchain industry is already seeing a drastic transformation, we now have a diversified pool of players that have already started investing in blockchain.

The current finance sector is undergoing certain problems such as the usage of a centralized system. And since it is centralized, it is easily vulnerable to cyber threats and system failures. All in all, the transactional fee is still high.

Although blockchain is still a new concept, the demand for skilled workers in the field is at an all-time high. To stay ahead of others in the competitive job market, it is recommended to start learning skills using blockchain certification programs.

Blockchain has been identified as one of the topmost trending jobs in the tech industry. Blockchain development and design are some of the hottest skills as identified by the industry. An average salary of a blockchain developer/engineer in the US ranges between USD 90,000 – USD 220, 000 per annum.

As mentioned, blockchain is in a nascent stage, however, the progress it has made over the past couple of years gained a lot of attention across different industries. It has proven its dominance in multiple fields like education, retail, healthcare, telecom, governmental agencies, and manufacturing.

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