Note from the CEO: Ah, security in the financial sector. Is blockchain the strongest link? Just ask any bank that has been hacked, Western Union which has just been fined for a whole bunch of very bad things and your own credit card account “how’s the system now”? Of course the new blockchain technology will be safer and more secure; lots more eyes watching.
Since the very structure of blockchain as a distributed ledger stressing transparency will allow all users to be able to spot any misfeasance, the new technology will have an extra level of security just because more “eyes” can spot a problem. The author believes this blockchain technology can be a game changer for security. We agree and learned a lot from this article.
There’s no doubting that blockchain technology has been on the minds of forward thinkers in the financial sector ever since bitcoin first made an appearance in 2009. The idea of such a distributed ledger has certainly made an impact, not least when it comes to banking security where many are heralding it as the next big thing.
Kim Sgarlata, a partner at Capco, is among those who see blockchain as having huge potential to move the financial sector into a more secure model. “Blockchain technology can promote security in a number of ways,” she insists, “such as enabling the capability to work with a transparent single source of truth.”
This enhanced visibility would allow all other users to observe any misfeasance. A powerful sentiment when joined up with the concept of an immutable chain of entries that prevent amendments and concealed ploys. “The concept of decentralised decision-making also removes some challenges conventional systems currently endure,” says Ms Sgarlata, “such as single points of failure and the operational risk posed by rogue system operators.”