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Fig. 10 Loan syndication system without Blockchain technology

As depicted in Fig.10, the whole system is simplified by the adoption of BCT.

Since the same contractual terms apply to all the syndicated group participants, BCT

will eliminate the need for each of the participants to maintain its records. A shared

ledger is maintained through the consensus mechanism wherein all the participants’

computers (nodes) are connected to this shared ledger. The ledger preserves past

transactions and is open to audit at any point in time. It also offers utmost security

through the digital signature mechanism, which authenticates the participant who

transacted, thereby weeding out the need for the elaborate KYC norms. The modus

operandi of digital signature is already explained in detail in the previous Sect.4.1

of this chapter. BCT also mitigates the requirement of a regulator, thereby easing

out the whole process. The above discussion on various areas where BCT can be

adopted effectively in the banking industry proves that the technology is ready to

revolutionize the industry if implemented along with the IoT. It creates a secured

environment that is system resilient and automates the entire banking process. It not

only increases the trust factor among the participants but from a technical viewpoint,

will also help the participants improve the quality of data, provide absolute control

of the data, and protect it from tampering. BCT will secure the transactions from

the security angle through the process of distributed ledger, consensus algorithm,