Blockchain is the latest buzz word in the Banking industry. Almost all of us have heard this time and again by now, and lets now try to understand a bit of what exactly is Blockchain.
Blockchain is a distributed ledger, in which the blocks containing transaction details are connected chronologically to form a series of chains, thus raising the possibility of improving the process and innovating business model for the financial institutions.
Blockchain is a technology to secure integrity and reliability of transaction records without trusted 3rd party service provider, by having all the participants in the network to create, record, store and verify transaction information jointly. It also has the structure to realize various application services based on distributed network infrastructure using security technologies including Hash, Digital Signature and Cryptography.
This Blockchain technology was first designed to save and use of crypto currencies safely. The Blockchain 1.0, which had main functions of issuing, distributing and transacting digital currencies, as the core technology, is now overcoming the limitations and being developed into Blockchain 2.0, aiming for expansion into various areas.
The characteristics of Blockchain are that, since it is a distributed structure, the cost incurred in P2P transactions can be reduced without the need for a trusted 3rd party service provider, and there is no need for centralized organizations or trusted 3rd parties to guarantee security or safety.
Types of Blockchain:
Public Blockchain is open in nature, in which anyone can participate. All participants may freely access data and make transactions, but since numerous unverified users are participating, advanced encryption and verification are needed, and thus, network expansion is difficult and it is very slow.
Unlike Public Blockchain, which provided pseudo-anonymity, it is possible to identify the subject in Private Blockchain: The transactions are handled fast, network expansion is easy and could be modified whichever way the user wishes, and thus, is suitable for the financial service industry.
Oaksys has been into testing the various Core Banking systems for over 18 yrs, along with the emerging latest technologies time to time, and is well versed with the ecosystem and the latest trends in the industry with the right approach and testing framework for testing these latest technologies with a huge repository of readily available test cases and domain expertise.
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