Accounting using Blockchain in Banking
Accounting and auditing are two of the most difficult and strict financial disciplines. They may appear easy at first appearance, but they are incredibly complex in reality, with a slew of legal requirements and standards.
Blockchain technology has the potential to streamline those rules, making the profession more accessible and efficient as a result. This industry will profit not only from having a fully transparent, always up-to-date digital ledger, but it will also be able to use innovative technology like smart contracts.
Verification of Digital Identity
Most banks now ask their customers to visit one of their locations to verify their identity. That’s inconvenient, and not just because we’re in the middle of a pandemic. It can be inconvenient in today’s quickly digitising world to have to take time out of your day to go to your local bank and wait in line for hours for a simple and quick transaction. Not to mention that every time you need to use your bank account, you will almost certainly have to go through additional identification verification procedures.
The use of blockchain technology can speed up the process of verifying an individual’s identity. Clients and consumers will never have to go through the hard and time-consuming identity verification process more than once thanks to technology like zero-knowledge proof.
Blockchain’s Future in Banking
There’s no doubt that blockchain offers a wide range of applications in the financial industry. The financial sector is still wary of this new technology, but it is gradually warming up to it. Blockchain technology in banking is slowly but steadily transforming the banking industry, from cross-border payments to hedge funds.
Traditional banking is definitely in need of a shake-up, and blockchain-based solutions, such as smart contracts and cryptocurrencies, appear to be the appropriate tool to help reinvigorate the existing financial infrastructure. It’s not impossible that, in a few years, we’ll all be utilising a digital currency issued by a national central bank instead of the USD or EUR.
Beyond the banking business, blockchain technology offers a wide range of uses. It is currently causing havoc in the supply chain, healthcare, marketing, and advertising industries. Musicians and artists use it as well.
However, there is some opposition to it. Many people are concerned about the potential environmental impact of cryptocurrencies. Some of them regard blockchain as little more than a speculative tool, seeing it as only another name for cryptocurrency. Others simply find the concept of NFTs absurd, mocking anyone who advocates for this new technology.
Of fact, the majority of these challenges arise as a result of widespread misunderstanding and misinformation about blockchain. However, correcting these misunderstandings will not be simple – simply describing what blockchain is will not persuade individuals who are already sceptical of the technology.
It will take time and a lot of effort to dispel those preconceived notions. However, as blockchain becomes increasingly integrated into our daily lives and more industries and businesses use it, more people will view it for what it is: a valuable and efficient technology.