A digital asset banking solution is one of the best ways to ensure high security while eliminating fraud, lowering operational risks, and reducing administrative costs. Banks are gradually understanding the benefits of blockchain technology and a large number of business owners have already invested in the crypto banking platform development solution.
Assets in the blockchain network move by ledger entities which makes transactions almost instant. Verification and processing of bank transfers may take several days, but the integration of blockchain in the banking platform can speed up the process from a few hours to several minutes. With the integration of blockchain technology in the banking platform, transactions become instant and take place in real-time.
2) Cost reduction
Using blockchain technology for banks can significantly reduce infrastructure costs. Smart blockchain contracts can lower the financial expenditures on intermediaries and minimize the maintenance and execution costs. Another advantage that users experience by using this technology is no involvement of a central authority when processing and administrating bank-to-bank transactions.
3) Fraud proof
Blockchain can resist hacking attacks and DDOS, as well as some other types of fraud. This technology can help financial institutions, start-ups, enterprises, and banks to identify users via blockchain-powered ID. Besides, users have more control over the inflammation they are willing to share. Less fraud, in turn, leads to reduced cost and improved financial operations.
4) Better security
Another advantage of using blockchain technology for financial services is improved security. There is less time for hackers to access transaction data or to divert payments with transactions that occur faster.
In some models, every operation has two keys; one is available to every user, and the other is shared only by the participants of the transaction. The public one can be used to see a user’s balance and financial history but can’t be used to find out their identity. The private key can only be used in a single transaction. Thus, even if a hacker manages to take care of a private key, they won’t be able to make a money transfer, which significantly improves the protection of funds and identity.
5) Improved data quality
Blockchain can easily store any type of information and allow accessing it by following specific regulations and procedures. The technology uses smart contracts to automatically verify and complete a transaction, which improves the data quality and makes it resistant to any interference from the outside.
6) Higher transparency
Transparency is a term generally associated with blockchain technology because the transactions are instantly recorded and can be traced by any user of the network. While transparency is a significant benefit, many users consider it a threat. That is why technology has introduced a variety of privacy measures, such as:
Privacy-focused cryptocurrencies- for example, Monero and Dash.
Zero-knowledge Proof Technology- with its help, a user’s data can be verified without disclosing it.
Confidential Transactions- this scheme is built by using homomorphic encryption and allows hiding transfer amounts.
Enigma Secret Contracts- enigma network and protocols allow encrypting data within a smart contract.
To Sum Up
The integration of blockchain into the banking sector allows banks, financial institutions, and start-ups to provide better service and security to their customers. If you are also planning to build your crypto-based banking platform, Antier Solutions can help.
We provide a white label digital assets banking solution that is packed with all essential banking elements – from the issuance of bank accounts, credit/debit cards to lending, remittance, and user onboarding. Our skilled team of blockchain developers not only helps to build a top-notch solution but also guides the clients on how to build a crypto bankin a hassle-free way.
Schedule a free demo of our white label digital asset banking solution or connect with our subject matter experts to share your needs for a custom banking platform to be built from the ground up.