How blockchain enables financial transactions in the banking sector

Abstract

Blockchain technology is the most important technological revolution of the second decade of the 21st century. The banking sector is one of the major sectors where blockchain has played a significant role in recording and processing various financial transactions, inter-bank transfers, and digital format agreements through a distributed ledger system. It harms the transactional costs, which influence the financial markets. The global financial system being the most popular sector is prone to many errors and frauds. Blockchain technology can help prevent these problems by enabling a decentralised network that permits all parties to review. The present study attempted to analyse the problems in existing banking financial transactions, understand the importance of transparency and study the usage of blockchain in the banking sector. It suggests a research model for solving financial transaction problems by applying blockchain technology. The study uplifts the security and transparency of blockchain technology throughout the paper.