Proceedings of the XXth Conference of Open Innovations Association FRUCT (Apr 2024)

Blockchain Implementation in the Protection System of Banking System During Online Banking Operations

  • Volodymyr Nakonechnyi,
  • Serhii Toliupa,
  • Volodymyr Saiko,
  • Vladyslav Lutsenko,
  • Ghazwan Saleem Naamo Ghno,
  • Angham Khalid Hussain

DOI
https://doi.org/10.23919/FRUCT61870.2024.10516404
Journal volume & issue
Vol. 35, no. 1
p. 500

Abstract

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Background: The fast digital revolution and expansion of the Internet have influenced banking, leading to blockchain technology and cryptocurrencies. This technique may solve online banking security and transparency challenges. Objective: The objective of this article is to examine the impact of blockchain implementation in the banking system, focusing on its ability to enhance the protection of online banking operations. It aims to elucidate the advantages and disadvantages of this platform in the banking industry, with a particular emphasis on its technical functionalities and consensus algorithms. Methods: Employing models and block architecture, the study analyzes the technical functionalities of blockchain technology, drawing comparisons with traditional banking systems. The research also explores the application of security, verification, and decentralization features to prevent fraudulent activities and ensure transaction integrity, particularly focusing on the banking landscape in India. Results: Initial findings indicate that blockchain technology holds promising prospects for improving banking efficiency, with its structures efficiently tracking transactions and preventing unauthorized alterations. The technology's characteristics, such as security and decentralization, make it a potential game-changer in the financial industry, with increasing acceptance and application by banks and financial institutions worldwide. Conclusion: Blockchain technology is poised to play a pivotal role in reshaping the future of the banking industry by addressing issues of security, transparency, and efficiency in online banking operations. Its increasing adoption by banks worldwide signifies a shift in traditional banking paradigms, highlighting the technology's potential to revolutionize financial systems and create a more secure and transparent banking environment.

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