ICICI stands for Industrial Credit and Investment Corporation of India. It is an Indian multinational banking and financial company whose headquarter is in Mumbai. ICICI bank is one of the largest Banks in India. This bank has nearly 4,850 branches and about 15,000 ATMs in India. In other words, we can say that this bank plays a very crucial role in Indian Banking Sector. Today we will discuss the Blockchain revolution which the ICICI bank revolutionized in India.
In August 2016, this bank became the first bank to use Blockchain technology in India and boasts that it linked nearly 250 corporates nationally and internationally to its Blockchain network. This is a very high number and can be considered as the milestone in Indian Banking sector for Using Blockchain Technology.
Blockchain Technology not only provides faster and safer mode of a transaction but also a reliable mode on which everyone can trust. India is a country where scams and frauds are very common. The banking sector is always at high risk of being engulfed in scams. The blockchain is one of the firm ways to treat fraud and prevent this sector from it.
According to Ms. ChandaKochhar, MD and CEO of the bank the Blockchain technology have a huge potential with which the all the stakeholders come on a single platform. This technology not only makes the relation between the bank and its customers strong but also makes the relation long lasting.
The Blockchain Application of the bank digitizes the paper-intensive international trade finance process then distributed this information to its entire participating organization to enable its parties-buyers and sellers across the country to transact in real-time. This also allows them to track documentation and authenticates the ownership of the assets digitally and also allows them to track the status of each transaction that had taken place on the network.
In addition to that ICICI is also planning to develop another Blockchain based system for trade finance to create a healthy ecosystem in partnership with other banks. The Blockchain data is unalterable and every transaction on its network can be tracked by any user of it. This will help to maintain an error-free database.
The Blockchain system uses cryptography to encode all the data in codes with a permanent and incorrigible cryptographic hash. By using Blockchain based system ICICI gave an example to India that how this technology can take India into a new era of an Errorless platform. Over 250 corporates not only believe in them but also appreciate their idea of using it. Moreover, the bank is also looking forward to developing a parallel Blockchain based system in partnership with other banks to provide a healthy environment for inter-bank transactions. All these steps taken by the esteemed private sector bank would play a very crucial role to enhance the Blockchain technology in India. Seeing the success of ICICI bank many other banks are looking forward to using this technology. We are sure in next few years this technology may be used in others banks also. This is all from us.