ICICI BANK first to execute Block chain technology in India
ICICI Bank, India’s biggest private sector lender, has become the first bank to implement the block chain technology. The technology was used complete a banking transaction without any third party involvement. The transaction was completed in partnership with Emirates NBD, another lender from the Middle East.
Before moving ahead, let’s understand what block chain technology actually is
A block chain is an anonymous online ledger in which data structure is used to simplify our transactions. Block chain allows people to manipulate the ledger securely and without needing any third party help.
Whereas a bank’s ledger is connected to a centralized network, block chain is incognito. This helps in protecting the identities of the users. Thus making block chain a more secure way to make transactions.
ICICI Bank was able to validate remittance transaction messages in real time. It also authenticated original international trade documents linked to invoice, shipping, purchase order & insurance, etc., electronically on block chain.
Exceptional features of block chain explain why ICICI carried out the experiment. Biggest feature being that block chain technology brings down transaction time to a few minutes from a few days. As the time is brought down, the costs also come down significantly.
Chanda Kochhar, MD & CEO, ICICI Bank, said, “I envision that the emerging technology of block chain will play a significant role in banking in the coming years by making complex bilateral and multi-lateral banking transactions seamless, quick and more secure.”
She also insisted that in future the bank will also look forward to working on expanding the block chain ecosystem. ICICI wants to create common working standards which can help in the commercial acceptance of this technology.
A recent survey, carried out by PwC, revealed that most financial institutions, including the ICICI bank, in the country consider block chain as the next big technological breakthrough. A breakthrough which is bound to transform the way people make transactions.
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