Is the Blockchain Totally Different from Traditional Banking Ledger?

DWQA QuestionsCategory: BlockchainIs the Blockchain Totally Different from Traditional Banking Ledger?
Editor Staff asked 1 month ago

Is the Blockchain Totally Different from Traditional Banking Ledger?

1 Answers
Editor Staff answered 1 month ago

Banking ledgers are used to ensure that the transactions can take place correctly. That’s why they trace and timestamp transactions. The significant difference between a banking ledger and a blockchain is how they are governed. The blockchain is decentralized in nature; however, banking ledgers are completely centralized as banks govern them.
The blockchain is completely transparent and trustworthy when compared to bank ledgers. Banks are keen on blockchain technology to automate most of their banking functionalities and provide a trustworthy approach. However, they are more likely to use federated blockchain or private blockchain to ensure that they still control their operations.