Even those people who don’t have much interest in technologies start paying attention to Blockchain. Thanks to Bitcoin, this technology became a widespread thing. Most of the big companies try to obtain it and use for their purposes.
Specialists say that the Blockchain technology can change working with data as we know it. The process of storing and using information will become more secure. It also can be more open to everyone. If companies spend much time on implementing such technologies, it can be reached very fast.
This technology is created for environments where no one trusts anyone else. That is why it is good for use in banking and payments systems. When transactions are made online, each side wants to be sure that money will be sent and received fast and securely.
How Does Blockchain Work?
When using traditional banking systems, each transaction contains information only about a specific payment, sender and receiver, and other additional details. With Blockchain, all transactions are based on previous transactions.
In such systems, all payments are saved in a long sequence, and the more payments are made, the bigger is this sequence. Everyone can see all transactions in the list, it makes this system more secure and useful for deals in which one side don’t trust another side.
It also can keep you anonymous when making payments. For example, the BitCoin system lets you send any amount of money to any wallet. It will be sent even if you don’t show your name and don’t know the name of a person to whom you send money.
How Does It Affect The Future Of Accounting?
Bank payments are usually very slow. It is not suitable for clients; the average duration of a payment is three working days, which seems to be too long as for the age of technologies. In Blockchain systems, transactions can be made in a few minutes or hours.
Transactions in the Blockchain finance system are also very cheap, they don’t need a lot of routine work and checking information. It helps to reduce commissions and save much money for those, who make payments very often.
The companies can pay more attention to Artificial Intelligence. They also will obtain Big Data and other popular technologies. It seems that they will extend their computer departments and try to make their usage of technologies more effective.
International restrictions may also be reduced thanks to this system. Now all payments between different states are additionally checked and verified by their financial institutions, and with the help of Blockchain, this process can be simplified.
The anonymity of all sides can increase. For example, if you need your online assignment help with a Blockchain white paper, you will be able to order it and pay for it easily. It is also relevant for other types of payments.
Common Myths about Blockchain in Banking System
With the popularity of Bitcoin and other similar currencies, many people associate this technology only with Bitcoin. However, these currencies are only one of many ways to use Blockchain. That is why you shouldn’t extrapolate your opinion about Bitcoin on other platforms based on BC.
If banks will use this system in their transactions, it doesn’t mean that they will be completely anonymous and secure. Due to laws of most of the countries, payments still should contain information on both sides. It means that banks will still need to verify your identity.
If a company implement this approach in its business, it doesn’t mean that it will start working fast or save money. Only a right implementation will lead to increasing the speed of payments. It also will make them more secure.
If you are going to watch the implementation of Blockchain in the banking system, you should check all information about it every day. Such systems grow and improve very fast and you have to read about them as fast as you can to stay informed.