Blockchain Implementation in the Protection System of Banking System During Online Banking Operations

Background: The fast digital revolution and expansion of the Internet have influenced banking, leading to blockchain technology and cryptocurrencies. This technique may solve online banking security and transparency challenges. This paper examines the obstacles faced when incorporating blockchain technology into financial systems, explicitly emphasising crucial concerns, including scalability, interoperability, and adherence to shifting regulatory frameworks. These problems are crucial for comprehending the intricacies and viability of using blockchain technologies in the ever-changing environment of online banking operations. Objective: This article aims to examine the impact of blockchain implementation in the banking system, focusing on its ability to enhance the protection of online banking operations. It aims to elucidate the advantages and disadvantages of this platform in the banking industry, with a particular emphasis on its technical functionalities and consensus algorithms. Methods: Wo models and block architecture, the study analyses the technical functionalities of blockchain technology, drawing comparisons with traditional banking systems. The research also explores the application of security, verification, and decentralisation features to prevent fraudulent activities and ensure transaction integrity, mainly focusing on the banking landscape in India. Results: Initial findings indicate that blockchain technology holds promising prospects for improving banking efficiency, with its structures efficiently tracking transactions and preventing unauthorised alterations. The technology’s characteristics, such as security and decentralisation, make it a potential game-changer in the financial industry, with increasing acceptance and application by banks and financial institutions worldwide. Conclusion: Blockchain technology is poised to play a pivotal role in reshaping the future of the banking industry by addressing issues of security, transparency, and efficiency in online banking operations. Its increasing adoption by banks worldwide signifies a shift in traditional banking paradigms, highlighting the technology’s potential to revolutionise financial systems and create a more secure and transparent banking environment.