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Importance of Blockchain and the future in Bangladesh

Importance of Blockchain

What blockchain is, exactly?

Blockchain is a method of storing data in such a way that it is difficult or impossible to alter, hack, or cheat it. The technology ensures that the system is visible and immutable.

The technology is essentially a distributed digital ledger of transactions that is shared across the blockchain’s complete network of computer systems and servers. Each block in the chain contains transaction information, and each new transaction is added to the ledger of each participant. As a result, the database is administered by multiple parties and is decentralized, with no central governance for system management. To record each transaction, the system employs an unchangeable cryptographic signature known as a hash, which aids in the linking of each new block formed.

Distributed Ledger Technology is a decentralized database that is administered by various people (DLT).

 

What is the purpose of the blockchain?

We know that in 2016, hackers broke into the central bank’s accounts at the Federal Reserve Bank of New York and stole $100 million. SWIFT, a Belgium-based cooperative banking communications infrastructure that banks use to move money internationally, appears to have been used to move the stolen funds. On February 5, a total of 30 SWIFT requests were made using Bangladesh Bank’s SWIFT code, with five of them being successful, according to the Prothom Alo newspaper. 

This type of unfavorable situation can be avoided if blockchain is implemented. The enormity of this robbery will almost certainly prompt more study on technologies that might supplement or replace existing cash transfer systems like SWIFT by employing cryptocurrency-style public ledger blockchains to keep definitive records of transactions.

 

In Bangladesh, blockchain technology is being used

Blockchain can be used in Bangladesh’s financial industries to help the country achieve its goal of becoming digital. For remittance, cross-border payment, payment processing, trade processing and settlement, and blockchain-enabled credit scoring, financial businesses can use blockchain.

Blockchain can be used in non-financial industries for certificate verification, passports, birth certificates, marriage certificates, death certificates, electronic voting, blockchain-enabled supply chain management, national healthcare data management, clinical data storage, and user privacy, among other things.

 

Bangladeshi banks are experimenting with blockchain technology

Standard Chartered Bank has blockchain transactions in place for local bank accounts, with plans to expand globally. There will be no such paperwork in their system, and no bank trips will be necessary. All parties engaged in the process, including buyers, banks, and beneficiaries, can complete all duties by logging on to Contour Network.

Prime Bank issued a blockchain interbank letter of credit (LC). HSBC Bank was used to complete the transaction. An inland LC was created by Prime Bank on behalf of AnantaGroup for the import of raw materials for the ready-made garments sector from Tamishna Group, a customer of HSBC Bangladesh, in the prototype transaction, which was completed through Contour, the global trade finance blockchain network.

Another commercial bank in Asia has begun work on integrating CBS with the Ripple xCurrent System. That bank was attempting to integrate its Core Banking Infrastructure with Ripple’s xCurrent system. The project’s goal is to integrate the Bank into the Ripple network, which includes a number of banks and MSBs. The final product will be a blockchain-based network that allows for real-time money transfers. Whether or whether this integration has been finished is unknown at this time.

 

Successful  Blockchain Projects

  •         Maersk is an integrated logistics firm founded by A.P. Moller.

For a rising world, we go to great lengths to link and simplify global trade. The shipping and logistics behemoth uses its TradeLens blockchain for the digitalization of supply chain data.

 

  •         IBM Corporation is a multinational corporation headquartered in Arm

IBM was one of the first major corporations to devote significant resources to the blockchain initiative. New vaccinations must have widespread acceptance. A new network powered by IBM Blockchain can help develop trust from conception to injection. Vaccine distribution can now be tracked from beginning to end.

 

  •         The ING Group is a global financial services company.

The ING Group, based in Amsterdam, is a Dutch international banking and financial services organization. Retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services are the company’s main operations. The code for their new project Bulletproofs is open-source, which means that anyone in the development community can use, access, and even contribute to it. For further information, visit GitHub.

 

  •         Tencent

Tencent assists Shenzhen’s tax authorities in issuing approximately 10 million invoices. Tencent has also launched WeBank, a blockchain platform known as FISCO BCOS (Be Credible, Open Source) that offers a unique blockchain platform. More than 100 Chinese enterprises are members of the Financial Blockchain Shenzhen Consortium (FISCO). WeSign aids in the speeding up of the arbitration procedure. As a result, it can be used to record various pieces of evidence in Chinese courtrooms.

 

  •         Visa

Visa B2B Connect” is one of Visa’s significant projects. It makes advantage of Chain’s blockchain architecture to provide a better cross-border payment solution. In truth, this project has the potential to provide a cost-effective, secure, transparent, and quick method of processing all global payments.

 

  •         HSBC

HSBCs blockchain ledger has assisted in the settlement of nearly 1.9 million trades for a total of $1.7 trillion.

 

Despite all of the successes and positive stories, there are significant obstacles to overcome, such as data immutability, cost and implementation issues, expert knowledge, and interoperability.

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