Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / 1 )Why is blockchain technology getting so much hype 2 Will it replace real time gross settlement systems 3 Could cryptocurrencies alleviate the de risking issues that banks face
1 )Why is blockchain technology getting so much hype
2 Will it replace real time gross settlement systems
3 Could cryptocurrencies alleviate the de risking issues that banks face
Block chain has been regarded as the future of the developments in the fintech technology and it expected to be implemented in the banking system of the nation , while the implementation of the block chain technologies do have some potential challenges, the following are the resonas for considering it to be the game changer
|
No |
Reasons |
Description |
|
1 |
Accessibility |
· The transactions have multiple modes or platforms of operations and therefore can be accessed form a wide range of platforms . · This helps in the increase of the user base for the adoption of eblockchain based services in banking and fintech |
|
2 |
Scalability |
· The wide scale of impeamtion ranges from fund transfer to p2p lending’s to everification using the block chain has improved the scalability of the banking opeartiosn |
|
3 |
Decentralized mode in implementation |
· The Block chain based system need not to be controlled by any central authority and therefore the flexibility is higher |
|
4 |
Ease of transaction |
· There are very low or nil chances of transaction failure |
|
5 |
Anonymity( privacy ) |
· The privacy concerns and the safeguarding of the credential are highest with the block chain based operations |
Part II
Replacing the RTGS based transfer is a challenging aspect for the blockchian because of the following issues
· RTGS transactions must be entered in the books of the central bank (RBI) in order to get passed through and approved at both the ends.
· Govt funding’s and transfers are done through RTGS mandates as these transactions must be audited and recorded in the books
· Due to the issues with Decentralization with the blcokchain technology , the following cannot directly replace the RTGS
Part III
The exposure to the risk parameters can be alleviated using the blockchian services as the key standpoint on which the block chain framework runs have some inherent weaknesses and the level of dencentatrlizion is not preferred in the banking system . While the influence of the centralized control form the central bank of the country is necessary in order to safeguard the interest of both the borrowers and the savers in the overall monetary system , the blockchaincan further expose the drivers of the de –risking factors and can cause the overall system to be Vulnerable
