What is Blockchain?Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).
Blockchain in Banking sector
Bank services such as deposits and loans may see an increase in their reliability as distributed ledgers and smart contracts available with blockchain technologies are used. In addition, the same technologies can be applied to foreign exchange businesses. International remittances and issuances of letters of credit and management in trade can proceed at lower cost and higher speeds. For example, Ripple coin (XRP) effects within blockchain technology are considered to be substantial. Ripple is a real-time gross settlement system as well as a currency exchange and remittance network created by Ripple Labs, a US-based technology company.