Distributed databases overtakes banking in 2020

Tons and perhaps millions of financial transactions happen every split second across the globe, thus making the financial and banking sector a soft target for fraud, heists and other vulnerabilities. Every banking industry out there, despite extreme security measures, lies at the mercy of diligent hackers who know the ropes of hacking. 

This vulnerability in the finance and banking sector can be tied to a centralized system of operation where all financially sensitive information is localized in a specific database. Security is of utmost concern when money is involved, and with a centralized system of operation, that cannot be ultimately guaranteed, hence why blockchain technology is seen as a savior.  

Blockchain technology runs on a decentralized database system or simply put, a distributed ledger system so no hacker can earn bragging rights for committing the most legendary cyber heist in the 21st century. With this distributed ledger system, no information is localized, they are distributed and are linked to one another in blocks. Any change in one will affect the rest of them, and a breach can get detected easily – which is highly unlikely given that each block is secured with a cryptographic key.