Blockchain Overview A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the current part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block. To use conventional banking as an analogy, the blockchain is like a full history of banking transactions. Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Meanwhile, blocks, are like individual bank statements. Blockchain in Banking Sector The blockchain in banking keeps a comprehensive and unedited data of all relevant information related to an online transaction. This application is a blockbuster in financial sectors, as it reduces the time length and makes a fast transaction. It takes place at end-to-end payment systems and avoids unwanted processes. The use of blockchain technology in the banking sector will lower the cost of financial transactions. The truth is; the long time required completing financial transactions results in high monetary cost. Fast-paced transaction and eliminating payment gateways will result in low financial transaction cost. More so, this will end third-party charges from all financial transaction in the banking industry. This will benefit businesses as well as individuals who perform financial transactions daily. The use of blockchain in the banking sector can help reduce fraud. Blockchain offers hope because 45% of financial intermediaries are prone to economic crime. Across the globe, banking systems are designed to function via a centralized database. Hence, they are vulnerable to serious cyber-attacks due to its many points of failure. The truth is; all a hacker needs to gain access to the system to breach it. Once this happens, fraud is eminent if such breach is not noticed on time. Blockchain technology has the ability to store enormous digital information. Thus, it establishes a smart contract in a given transaction once parties involved insert their unique keys. Hence, banks and blockchain companies can collaborate to create contracts for any completed transaction. This unique technology offers the banking industry many unique opportunities. But certain challenges must be overcome for noticeable impacts to occur in the banking sector. To deploy this technology in the banking sector, it must conform and follow recent privacy laws. This is necessary to protect individual and organizational data as well as the safety of such data.