Blockchain technology allows for the creation of a structured data structure that is intrinsically secure. A cryptocurrency is based on the principles of cryptography, decentralization, and consensus, which is a mechanism that ensures that transactions can be trusted.
Data is usually organized into a series of blocks, and within each block, there is a transaction or bundle of transactions, which makes up the most popular blockchain or distributed ledger technologies (DLT).
This cryptographic chain is constructed by connecting every new block to all those before it to ensure that no block can be tampered with in the future.
An agreement mechanism is used to verify and agree upon the validity of all transactions within blocks, and this mechanism ensures that each transaction in the block is valid.
A crucial part of keeping our money safe and secure is the use of technology in the world of modern banking.
There are many breakthrough technologies in the world today, and blockchain is one of them. The Indian market for digital payments is expected to have a market capitalization of an astounding 500 billion by 2020 with its growth on a steady track.
Several factors, including demonetisation and government efforts to encourage mobile-based transactions across the country, can be attributed to the increase in the use of online payments across the country. The move to a truly digital economy seems to be only a matter of time. With an increasing number of Indians opting for digital cash and more payment methods evolving to support digital transactions, it appears that we are on our way to becoming a fully digital economy.
It must be said, however, that one of the current challenges with online payments in the country is finding a way to uniform the structure and functionality of the payment system.
Blockchains are similar to big ledgers, storing all transactions that occur in an encrypted record in an encrypted database that can be searched in real-time.
With Blockchain technology, users have the option of sending, receiving, and managing their accounts online with no middleman in the case of online transactions.
Blockchain technology represents a very promising method of decentralization that allows members of a distributed network to contribute to the network.
An individual user cannot change the record of transactions in a server-based environment, and there is no single point of failure. Despite this, there are some critical differences in the security aspects of blockchain technologies.
The Automated Teller Machine (ATM) is a way for financial institutions wishing to provide their customers with the convenience of conducting small transactions without having to interact directly with bank staff by offering them an electronic outlet through which they can accomplish the task.
With ATMs, customers can carry out many of their banking transactions easily by performing self-service transactions such as depositing cash into their accounts, withdrawing cash from them, paying their bills, transferring funds between their accounts, and checking their account balance and latest transactions.
As always, the safety of newly invented technology may be the largest challenge with the most technological advances. Secondly, and perhaps most importantly, since ATMs are primarily used for cash exchange, hackers and robbers are constantly looking for ways to exploit them to gain access to cash.
Typically ATMs are connected to bank servers via leased lines, which provide high-speed connectivity, so these ATMs are normally linked to the bank's servers. An ATM manufacturer (National Cash Register or NCR) provides the hardware components required for the establishment of an ATM (Automatic Teller Machine) and is typically contracted by the bank to provide the hardware and software.
The manufacturer usually purchases the ATM from an ATM manufacturer, usually NCR (National Cash Register).
It has become very common for banks to outsource ATM maintenance, including cash loading, to third-party service providers to handle their responsibilities.
To enable the ATM software to connect with the interbank network and dispense cash accordingly, ATMs are equipped with a switch, also known as a payment transfer engine, which is the engine that enables the ATM to transfer money between accounts.
ATMs are frequently targeted for physical and logical attacks, which are the two most common types of attacks on them.
A physical attack nowadays is an outdated practice due to the risks involved, which include financial hazards, as well as hazards to life, property and health that may result from it. Various forms of physical assault are used to attack ATMs, including the use of explosives, the removal of the machine from its post, or any other of many methods that involve forcefully removing the machine from its original location.
With advancements in scalability, privacy, and regulatory compliance, the future outlook for blockchain-based ATM security looks quite promising. This is expected to lead to a broader adoption of the technology in the future.
Due to the evolution of quantum-resistant cryptography and the introduction of various interoperability features, blockchain technology is poised to offer unparalleled protection, helping to prove the robustness and safety of the financial industry as a whole.
Considering these significant innovations, it becomes more and more imperative that the financial industry implements blockchain technology to keep up with these advances. Through the integration of blockchain technology into ATM security, overall financial services, and the user experience, ATMs can be made more secure and enhanced with greater efficiency and transparency.
Financial institutions can stand out from the competition by integrating blockchain technology to contribute to a more secure and trust-driven future in banking and beyond, which can lead to a more secure, more transparent and more efficient system.
