Here's how financial services industry is embracing Blockchain technology

Blockchain technology is based on distributed storage of data  

             

Technology News: With digitisation transforming the financial services sector in terms of speeding up transactions and fraud detection, the Blockchain technology holds an enormous promise of further strengthening the sector, a top official with The National Stock Exchange of India Limited (NSE) has emphasised.

"The NSE is experimenting with Blockchain technology, a NSE CTO Sankarson Banerjee told IANS on the sidelines of the fifth Cisco India Summit.

The Blockchain technology is based on distributed storage of data. A Blockchain is a continuously growing list of records -- called blocks -- which are linked and secured using cryptography.

"Blockchain, we know, is the best way to create an immutable record of things. That opens up a lot of use cases for asset verification - who owns the asset, where it comes from, things like that - or tracing the transaction of an asset," Banerjee noted.

"The second advantage of Blockchain is that it helps avoid double spend. It allows for unique non-repeatable transaction," he added.

Blockchain can make things highly distributed and resilient in ways that traditional data storage technologies cannot, Banerjee said, adding that in Blockchain, one can distribute a record to thousands of people and yet everybody can be sure that nobody can fake that record.

"Blockchain is genuinely a different way of doing things. Today, the asset is held in physical form and digital records of it are transacted," he stressed, making the point that Blockchain technology should be credited for creating genuine digital asset for the first time.

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