An Operative Application of Distributed Ledger Technology for Banking Domain

Abstract

Banking systems have been using a centralised network over several years. Any attack on the centralised unit would risk a whole lot of banking data. To avoid this, Blockchain is an approach, which is more appropriate to hold the large data in a safe manner as it is a decentralised network. The purpose of this paper is to provide better understanding about using blockchain for the banking sector by outlining the opportunities, benefits and challenges of this technology. We propose a technique of banking using blockchain which would make things simpler, safer and transparent. Also, at some point in time, we can even put restrictions to limit the transaction amount, day limit, credit limit or other restrictions depending upon the banking rules. Through these restrictions, attempts towards hacking or misuse could be prevented. This work would benefit the banking sectors and modify the direction of Finance.