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Blockchain being used in banking, contracts
News:
- With the advent of blockchain technology, companies and banks are able to increase their operational efficiency.
Important facts:
- Trade finance involves complex documentation processes, high transaction costs, high settlement times and low authenticity rates with physical documents. As a result, a bank’s customer needs to face delays, high costs and risks.
- Blockchain allows all stages of transactions to be securely shared between network members. It also offers cost reduction, risk mitigation, traceability and security.
- The technology not only appeals the Indian companies in simplifying contracts but also helps in applying consensus policy through installing smart contracts.
- As for example, these smart contracts can be used for information which forms the basis of KYC documentation, ensuring that details like name, address, and date-of-birth cannot be modified once they have been entered into the system.
- Government can learn the way to regulate cryptocurrencies and blockchain from smaller countries that have adopted the technology. smaller countries such as Estonia, Lithuania, and Sweden are more receptive to adopting new technologies.
- Blockchain technology can be used to digitize and authenticate complex records like land holdings.
