Blockchain Technology in Peer-to-Peer Transactions Emphasizing Data Transparency and Security in Banking Services

Abstract

The banking system serves as the central and essential component of a functional economy. A robust banking system is essential for fostering economic growth and facilitating development. However, the systems have certain drawbacks Numerous instances of fraudulent operations were reported, leading to clients experiencing theft and unauthorised access to their properties. With the progression of the digital era, there is an increasing exposure and scrutiny of these centralized systems, thereby leading to a shift in thoughts towards decentralised alternatives. This chapter provides a concise discussion of the necessity of decentralised financing and how it can be accomplished through the utilisation of blockchain technology. Firstly, the study examines the mechanics of decentralised banking systems and their potential to address the limitations of conventional banking systems. Further, a brief of various case studies has been given. Finally, the chapter discusses the transformation of the banking system using blockchain technology.