BlockChain Could Have Saved Banks from System Failures

It seems this could be the answer to stop cybercriminals

Photo by: The Drum

On April 27, two banks and a brokerage house, reported failures in the connection to the System of Interbank Electronic Payments (SPEI), but by then, there were not enough elements to realize that it was a hack. The cybercriminals infiltrated some banks in order to make unauthorized transfers of money, and as the sites were vulnerable, it allowed all the money to be diverted to false accounts, which in turn, generated several withdrawals of cash from other banks.

Specialists in the matter agreed that if the banks want to have greater security, in order to have greater certainty in the banking movements and also avoid the manipulation of data, this would help to trace where the transactions come from.

Dulce Villarreal, an economist at UNAM, tells El Financiero that if banks want to prevent future hacks, they should consider migrating all their technology to BlockChain, since this will allow them to have a more secure system with greater protection.

The HSBC bank has invested in the company R3 to begin testing with BlockChain for financial use. With these actions they seek to eliminate the vulnerabilities of their network. Thanks to this block technology it is possible to store information in the servers and update permanently, and once in this system, it is impossible to modify or eliminate the registered activities.

What are the relevant changes for these banking systems? Very simple, the banks, being centralized, in case hackers manage to attack the central node of the system, they can have total control of all the information with which the bank counts; On the other hand, if you have this chain block technology, it is practically impossible, due to the distribution of information.

Not only for safety, but also efficiency

There are two types of blockchain, the public ones, such as the one that uses bitcoin, and the private ones, which can be used by banks or private companies such as Ripple. This technology would allow banks to have the data of their account holders in a private network (an intelligent system), with which they could choose who is a good candidate to give bank loans.


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