Topic: Blockchain Technology
7. Blockchain Technology is potential of revolutionizing the traditional Banking system, do you agree? Comment. (250 words)
Reference: investopedia.com
Why the question:
The question is based on the theme of Blockchain Technology.
Key Demand of the question:
Discuss in what way Blockchain Technology is potential of revolutionizing the traditional Banking system.
Directive:
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
Introduction:
Start with what Blockchain Technology is.
Body:
A blockchain is a decentralized ledger of all transactions across a peer-to-peer network. Using this technology, participants can confirm transactions without a need for a central clearing authority. Potential applications can include fund transfers, settling trades, voting, and many other issues.
Discuss then its specific applications in the Banking system. Bitcoin and other cryptocurrencies act both as digital money and also a method to send payments in that money-form around the globe. These transactions require only an internet connection and take place instantly. While it is true that it may take many minutes for a transaction to be 100% confirmed, the transaction itself takes place in a matter of moments. These transactions are borderless, secure and largely anonymous.
Suggest challenges if any.
Conclusion:
Conclude with importance.
