What does blockchain mean at its core? Technology
Artificial intelligence mobile assistants, biometric authentication systems, voice and video banking, opening accounts without visiting a digital branch, The contribution of technology to banking is incalculable. Blockchain, or the blockchain network, one of the most popular technologies of recent years, is one particular area where technology is having an impact on the banking sector.
While blockchain technology may seem complex, its basic concept is quite simple. Blockchain, which is essentially a type of database, defines a blockchain structure made up of blocks. Blockchain, which provides secure storage and processing of valuable data, uses a distributed network structure.
What does blockchain mean at its core?
Advances in technology are shaping the banking sector, as are all other industries. This technology is effective for developing new products and services in banking and security.
Since the security of personal data in banking is much more important than in other areas, it has become inevitable to take advantage of modern technology in this area.
Blockchain technology is one part of the financial industry, both in terms of security and in a variety of ways. We explore for you the place and importance of blockchain technology in the financial world.
Blockchain, which over time has become used for a variety of purposes in many industries and was even behind the birth of cryptocurrencies, has become a very functional technology for the financial sector as well.
How important is blockchain technology to the financial sector?
In a short period of time, blockchain has been adopted by many international institutions because it facilitates more transparent, secure, fast and efficient business processes in financial institutions.
The benefits arising from the relationship between blockchain and finance can be listed below:
The fact that all transactions on the blockchain network are recorded forever and that blockchain structures cannot be changed increases security.
Transactions made by users on the network are recorded transparently and highly secure. Changing data requires adding other chains and validating other blocks. All of these features minimize security vulnerabilities in the financial sector.
Blockchain completely replaces complex document storage, which is of great importance to financial institutions.
Thanks to transaction protocols called "smart contracts" that can work with the blockchain database, tedious approval processes are minimized.
Operational burdens and costs
In this way, the operational burden and costs of financial institutions are greatly reduced. Blockchain structures are accessible only to network members and cannot be altered by outside interference. All of these features make blockchain an extremely secure structure.
With digital currencies using blockchain technology, money transfer transactions become more secure and faster. Transaction costs are reduced.
Is the banking sector ready for a future with blockchain applications?
Blockchain has brought innovative developments to the banking sector. Like all technological developments in finance, it has adapted quickly. By closely following the development of the blockchain sector, the company has innovated in the U.S. and conducted the first commercial financing pilot transaction using blockchain technology.
Moreover, the data stored on the blockchain is only available to members of the network. Each transaction is stored on the network as a blockchain structure, which are connected in chronol ogical order, forming a secure chain.
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