Online Economy on the Move: The Future of Blockchain in the Modern Banking System
01 Jan 2021-pp 129-145
TL;DR: The paper aims to make required changes in the blockchain model prevalent today to make it relevant for use in the banking system and evaluates the advantages of the blockchain system over the current system employed in consortium banking and payments through an assessment framework.
Abstract: The Indian banking system is a complex hierarchical structure engaged in financial intermediation. In its role as a financial intermediary, it performs several transactions like cash deposits, cash withdrawals and investments on a daily basis and is an important institution to assess a nation’s economic growth. However, with the constantly growing amount of data and the increasing susceptibility of banks to online fraud, banks now need to shift to a more robust, efficient and secure platform to carry out their functions. One such platform is provided by the blockchain structure. Blockchain is a decentralized, public ledger system which has gained immense popularity and recognition for its efficiency, security and transparency since its inception in 2008. This paper aims to make required changes in the blockchain model prevalent today to make it relevant for use in the banking system and evaluates the advantages of the blockchain system over the current system employed in consortium banking and payments through an assessment framework. This paper also tries to devise types of blockchain platforms which can encompass most of the functionalities of the banking system existing today. The paper is divided into three parts. The first part aims to devise a suitable consensus protocol which can be used to make blockchain suitable for banks, the second part discusses types of blockchain platforms applicable in the banking sector and the third part employs use cases in payments and consortium banking to demonstrate the advantages of blockchain.
TL;DR: A real-time system that incorporates the concepts of prioritization and cryptocurrency, named SMERCOIN, to incentivize electric vehicle users to collectively charge with a renewable energy-friendly schedule, and implements a ranking scheme by giving charging priority to users with a better renewable energy usage history.
••01 Jan 2018
TL;DR: Looking critically into the Bitcoin protocol, one can find some weaknesses that can be violated by the attackers for malicious purposes, which are very popular in the business world and the global economy, due to its decentralized peer-to-peer architecture.
Abstract: The advent of the digital currency systems has revolutionized the concept of money transfer by allowing the internet based creation, storage and transference of money. In the past few years, the digital currency systems have emerged as an efficient means of money transfer. They have received worldwide adoption by providing a medium of exchange based on mathematical operations and by taking the currencies out of the control and manipulation of the governments. In addition to being used in the e-commerce and commercial sectors, the digital currencies have also attracted a large population of the earth which cannot get access to the formal banking systems. The crypto-currencies, being one of their types, involve different cryptographic functions for their creation and transference, in a trusted and secure environment. The use of cryptocurrencies has progressed from a virtual concept to reality by the evolution of Bitcoin. The success of this concept has led to the creation of many other crypto-currencies which include Litecoin, PeerCoin, Namecoin, Quarkcoin, Primecoin and Zetacoin (Stevenson, 2013). Bitcoin, along with the other crypto-currency systems, is very popular in the business world and the global economy, due to its decentralized peer-to-peer architecture. In comparison with the other payment platforms, which maintain a private communication network for sending and receiving money, Bitcoin uses the internet as its medium of transference. By Looking critically into the Bitcoin protocol, we can find some weaknesses that can be violated by the attackers for malicious purposes. In the past few years, a lot of vulnerabilities have been exploited causing the users to lose their bitcoins (L., n.d.), (Blasco, 2013), (arXiv, 2014). Matthew Wilson et al. (Yelowitz, 2014) analyze the characteristics of the Bitcoin users based on the Google search data and found that illegal activities and programming enthusiast are related to Bitcoin search but no correlation was found with political and investment motives. As of March 2014, bitcoins of worth 502,081,166.11$ have been stolen (L., n.d.). Based on the empirical analysis of Bitcoin exchange risks, it is found that the failure rate of bitcoin exchanges is 40% (Christin, 2013). Mt. Gox that was considered to be the largest Bitcoin exchange, got bankrupt in February 2014, allegedly due to theft, resulting in the loss of 850,000 bitcoins, out of which 20,000 were later recovered (https://en.bitcoin.it/wiki/ Mt._Gox, n.d.).
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How can blockchain technology be used to improve the efficiency and security of banking transactions?
The paper discusses using blockchain to make the banking system more efficient and secure by proposing a suitable consensus protocol and types of blockchain platforms applicable in the banking sector.