How Banks Are Leveraging Blockchain Technology

The modern banking system dates back to the 13th century in Italy where the most famous bank across Europe was the Medici Bank. Their main innovation was the combination of banking and accounting systems, writing double entry data inside a general ledger. A bankers job was to track debits and credits or handle deposits and withdrawals for clients. They had to make sure entries were placed in a safe place and funds were secured.

For centuries, some of the biggest companies and salaries around the world came from the banking industry. However, during the 2008 financial crisis, this trust between banks and clients took a hit. Many banks had mismanaged their clients' funds and it was time for something new. Many startups jumped into the scene and offered mobile-first banking solutions, UI/UX friendly etc but the problem was still there. Human error, corruption, pen and paper records, and mismanagement of transactions would not go away with the current system.

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