Volume: 19 Issue-01 (January-June) 2024

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NAVIGATING THE DIGITAL FRONTIER: BLOCKCHAIN TECHNOLOGY AND ITS IMPACT ON BANKING SECURITY

ABSTRACT

In the era of rapid technological advancements, the banking sector faces evolving challenges in securing sensitive financial transactions and maintaining the trust of its clientele. This review research paper explores the transformative potential of blockchain technology in revolutionizing banking security. By delving into the core principles of blockchain and its decentralized architecture, the paper examines how this innovative technology can enhance the security landscape of banking operations. The review provides an in-depth analysis of blockchain's cryptographic foundations, consensus mechanisms, and smart contract functionalities. It investigates the role of these elements in creating a secure and transparent framework for financial transactions, significantly mitigating the risks associated with traditional centralized banking systems. Furthermore, the paper assesses the impact of blockchain on key banking security concerns, including fraud prevention, data integrity, and identity verification. By leveraging the immutability and transparency inherent in blockchain, financial institutions can fortify their defenses against cyber threats and unauthorized access, ensuring the integrity and confidentiality of sensitive customer information. The review also scrutinizes the potential challenges and barriers to the widespread adoption of blockchain in the banking sector. Regulatory considerations, scalability issues, and interoperability concerns are examined, offering insights into the complexities that must be addressed for successful integration. Moreover, the paper explores real-world use cases and pilot projects where blockchain technology has been applied to enhance banking security. Case studies demonstrate how leading financial institutions are embracing blockchain to streamline operations, reduce costs, and fortify security protocols. This review research paper highlights the pivotal role of blockchain technology in navigating the digital frontier of banking security. By providing a comprehensive overview of its core features, potential benefits, and existing challenges, the paper aims to guide researchers, policymakers, and banking professionals in understanding and harnessing the transformative power of blockchain for a more secure and resilient banking ecosystem.

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