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Rachel Welch

25 October 2022 200 Read Blockchain

Can Blockchain Replace Banks?

Blockchain is a distributed network where all participants in a transaction have a copy of every transaction. This increases the network's resilience and protects it from being compromised. Its use in financial services would reduce the cost of transaction processing and increase accessibility. It would also help financial technology startups compete with major banks. Lastly, it would benefit everyday investors by removing transaction fees.

Historically, banks were founded to facilitate trade and connect communities. However, with the rise of cryptocurrencies, banks have found their roles are increasingly diluted. With the use of blockchain technology, banks could move to a more customer-centric approach to their service delivery. They would be forced to become more customer-focused instead of promoting their own agenda. However, to fully utilize the potential of blockchain, banks would have to educate themselves on the new technology.