CAIIB IT::
Bitcoin Crypto-currency & Block-chain Technology
Now, most people have heard about Bitcoin, the cryptocurrency. The technology behind Bitcoin and what makes it so potentially disruptive at so many levels is called block-chain, or also a distributed ledger. Block-chain, thus; is essentially a distributed database. Many of the Banks, nationally and internationally, have started taking steps towards adopting block-chain technology for their cross-border payment systems, to start with.
Today, there are several banks pursuing individual block-chain strategies. These individual initiatives will be meaningful when they are used by all the banks. For instance, a payment system such as NEFT cannot be successful if it is adopted by only one bank. Block-chain, the technology behind cyber currency Bitcoin, follows the concept of a centralized registry that can be accessed by all members, and every event is registered as an unalterable 'block'. Being the largest bank in India, SBI has taken the lead in initiating block-chain. Other banks in the country are following suit gradually.
All the subsequent events related to the loan can be put on the “block” so that members can take informed decisions. Another business where block-chain can be used as a tool is in trade finance where there's a risk of fraud with the merchant going to multiple banks with the same invoice to get the bill discounted. If documents are put on the block-chain, everyone will know which invoices have been discounted by Bank X and this could prevent multiple discounting frauds.
Bitcoin Crypto-currency & Block-chain Technology
Now, most people have heard about Bitcoin, the cryptocurrency. The technology behind Bitcoin and what makes it so potentially disruptive at so many levels is called block-chain, or also a distributed ledger. Block-chain, thus; is essentially a distributed database. Many of the Banks, nationally and internationally, have started taking steps towards adopting block-chain technology for their cross-border payment systems, to start with.
Today, there are several banks pursuing individual block-chain strategies. These individual initiatives will be meaningful when they are used by all the banks. For instance, a payment system such as NEFT cannot be successful if it is adopted by only one bank. Block-chain, the technology behind cyber currency Bitcoin, follows the concept of a centralized registry that can be accessed by all members, and every event is registered as an unalterable 'block'. Being the largest bank in India, SBI has taken the lead in initiating block-chain. Other banks in the country are following suit gradually.
All the subsequent events related to the loan can be put on the “block” so that members can take informed decisions. Another business where block-chain can be used as a tool is in trade finance where there's a risk of fraud with the merchant going to multiple banks with the same invoice to get the bill discounted. If documents are put on the block-chain, everyone will know which invoices have been discounted by Bank X and this could prevent multiple discounting frauds.
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