Blockchain Cloud Computing
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Institution
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IMPACT OF BLOCKCHAIN IN THE BANKING INDUSTRY
Abstract
Blockchain has been considered the future of banking technology since it enables multiple parties to agree on transaction details. At the same, it will still guarantee correctness and also prevents any tampering. The article described in the literature review blockchain has been identified as a new kind of innovation in the banking sector. The survey report is about the impact blockchain has had on the banking sector; the rationale for taking this research is that blockchain decentralizes the transactions done and ensures the system is secure. The method used for this research was a survey, and the design was qualitative analysis; the sample from this research used was simple random sampling.
Introduction
Blockchain is a type of technology that provides a ledger database whose record is cryptographically-signed and immutable by using a validation protocol or distributed consensus. Blockchain enables multiple parties to agree on details of transactions, and at the same, it will still guarantee correctness and prevent any tampering. All these are done without relying on centrally trusted authority (Nofer et al., 2017). Blockchain technologies are normally built around APIs, infrastructure, management tools, and platforms; they are usually driven by an increased level of transparency, traceability, and security in the transactions. The topic that I will be discussing in this research is the impact blockchain has had in the banking industry; the reason for doing this research is because blockchain technology is the future since it will transform the way businesses are conducted. Every day there are normally millions of transactions that take place in the banking industry. Therefore, blockchain, which is still an emerging technology, has helped ensure the system security is maintained; and, by doing so, has helped keep the permanent records of those transactions.
Apart from lowering the risk by making sure there is better security, blockchain has also enabled the cheaper and faster transfer of transactions by offering decentralization. The issues that will be addressed are how blockchain has increased efficiency of work in the banking sector, the kind of benefit the banking sector has got due to using blockchain technologies. The independent variable is blockchain. The dependent variable impacts the baking sector; the hypothesis that will be used during this research is how blockchain positively transformed the banking sector as a whole. The research will mostly focus on the various things blockchain has done to the banking sector to make the transaction more effective. Key concepts are blockchain and the impact it has on the banking industry.
Literature Review
According to Harris & Wonglimpiyarat, 2019, the aim of the paper they wrote was analyzing the kind of innovation blockchain had on the banking industry regarding dynamic competition and systematic dimension. Their research findings were that banks were still competing to create their own blockchain systems; the blockchain banking future was said to be cross-chain interoperability to support the full spectrums of internet value exchange and payments (Harris & Wonglimpiyarat,2019). Blockchain technologies were conceptualized by a group of people or even an individual named Satoshi Nakamoto. In a World Economic Forum, a survey had forecasted that at least 10% of the world GDP would be on a blockchain-based application; many researchers believe that blockchain-based systems could eradicate institutionalized theft corruption (Zheng, 2018). The new insight for the research blockchain has been utilized in the banking sector and other industries. This research will make a very great contribution since the readers will understand blockchain’s role in the banking industry.
Method
In conducting this research, I am going to conduct a survey where I will be comparing the impact blockchain has had in different banking institutions; I am going conduct interviews on face to face basis and also through the use of telephones, where my sample population will include members of different banking institutions. I will use simple random sampling to select my population. After conducting my survey, I will compare my findings to see whether or not blockchain had impacted the banking sector.
Results
Qualitative data will be collected from the survey that will be conducted. It will include how efficient has work been done since the introduction of blockchain and how secure the transactions are being made. I will use inferential statistics to answer and test my research question.
Discussion
The research will help many banking institutions that have not adopted the use of blockchain technologies. The research’s weakness and limitations were that the number of resources needed to implement the blockchain system was not indicated. Future work should find a way of analyzing blockchain from also other industries.
References
Harris, W. L., & Wonglimpiyarat, J. (2019). Blockchain platform and future bank competition. Foresight.
Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business & Information Systems Engineering, 59(3), 183-187.
Zheng, Z., Xie, S., Dai, H. N., Chen, X., & Wang, H. (2018). Blockchain challenges and opportunities: A survey. International Journal of Web and Grid Services, 14(4), 352-375.