Role of Blockchain in Revolutionizing Online Transactional Security

TL;DR

This paper discusses how integrating blockchain technology into traditional banking can significantly enhance transaction security, reduce fraud, and increase customer trust, despite challenges like volatility and lack of regulation in cryptocurrencies.

Contribution

It explores the potential of blockchain to improve security in banking and reviews integration channels, emphasizing its benefits over traditional systems.

Findings

Blockchain integration can reduce banking frauds.

Blockchain enhances transaction security and customer confidence.

Cryptocurrencies are volatile and lack regulation.

Abstract

This paper highlights the necessity to use modern blockchain technology in traditional banking sector to reduce frauds and enable high-security transactions on a permanent blockchain ledger. Reviewing different channels through which the traditional banking servers could integrate blockchain use, it is signified how a huge anti-fraud stand can be taken against bank servers allowing fraudulent transactions daily. Usage of a blockchain-based ledger is highly impactful in terms of security of a banking organization. Blockchain-based currency tokens, also referred to as Cryptocurrencies are not regulated by the government, highly volatile, and anonymous to use. Furthermore, there is no security for any funds invested in a cryptocurrency market. However, the integration of a blockchain ledger in a traditional banking organization would strengthen the security to provide more stability and confidence to its customers and at the same time, make blockchain a more reliable method to consider due to being trusted by large financial organizations.