Challenges in the financial industry are facing
According to the US Department of Financial Control, there are about 100,000 attacks a year on private
banking systems, funds and trading systems, and robbed tens of billions of dollars each year. The most
common are DDOS attacks, this is one of the popular attacks worldwide, the problem of whether DDOS can
In Blockchain, two security keys exist for each transaction: The public key can be used to view a user’s
account balance and transaction history, but it cannot be used to identify the account owner’s identity or to
make changes to their record. The private key is linked to the user’s account number, and can only be used
once. Even if a hacker could steal the private key and decrypt it, it would not enable them to make further
2nd. Trading time
Buying and selling assets has always involved a lot of third parties, such as brokers and the stock exchange
itself. Here is how trading works:
1. The buyer or seller initiates the trade.
2. A broker sends a transaction to a stock exchange.
3. The transaction is matched with another party (counterparty).
4. The transaction is sent to Central Counterparty Clearing House for risks evaluation.
5. The buyer’s or seller’s representatives work with the Central Securities Depository (CSD) to record the
6. The transaction is sent to the Registrar or Transfer Agent of Initial Trade to update their list or
As you see, the traditional stock exchange process involves lots of stages and bureaucracy and can take up to
3 days. Time is too long to wait. However, decentralized nature of blockchain technology in banking can
remove all those unnecessary intermediaries and enable trading to be run on computers all over the world.
No more dedicated servers united into an interconnected network.
3th. Transaction cost and scope
When you send or receive a payment, the funds typically move through banks, credit card processing
networks, and other intermediaries. Each step adds complexity, and every service provider expects to
earn a fee for the part they play in your payment. Blockchain-based transfers save time and money
For example, assume a worker in the U.S. wants to send funds to her home country. In the past, she’d
have to travel to a money transfer office, wait in line for an agent, pay cash, and pay fees of 7 to 10
percent to complete a transfer. The recipient might follow a similar process. But with blockchain
technology, both parties can complete an electronic transfer with mobile phones—and pay far less.