Modern Banking With Blockchain Technology

Abstract

The growth of Blockchain technology and Distributed Ledger Technology (DLT) is poised to revolutionize global financial systems, transforming traditional banking paradigms. This paper explores the significant impact of blockchain on modern banking practices, emphasizing enhanced security, transparency, and efficiency. By decentralizing transaction verification and record-keeping, blockchain mitigates risks associated with fraud and data breaches, providing trust among stakeholders. Additionally, the integration of smart contracts facilitates automated, real-time transactions, reducing operational costs and increasing transaction speed. This study examines various blockchain applications in banking, including cross-border payments, identity verification, and regulatory compliance, highlighting case studies from leading financial institutions. Furthermore, we discuss the challenges and regulatory considerations that must be addressed to fully harness blockchain's potential in financial services.