Blockchain Technology - The peculiar way to circumvent fraudulence

On Wednesday morning, the Punjab National Bank detected some unauthorized transactions at one of its branches in Mumbai. The PNB immediately reported this activity to the Bombay Stock Exchange and declared the gigantic amount of Rs 11,400 crore under a scam.

The Fraudster Nirav Modi, a renowned diamond jeweler, who is the founder and creative director of the Nirav Modi chain of diamond jewelry stores, was accused of the fraudulent allegations.

The wise player used Letters of Undertaking by the banks to conduct these unauthorized activities and fled away from the country as soon as the case came to light.

The Nirav Modi loot garnered umpteen attention and aggression among the people as to how can such a big scam take place under the nose of a National Bank.

Rigorous investigations and Inquires were held to reach even get hold of the chain that helped Mr. Modi conduct these activities so smoothly for all these years. It was found that some of the bank's officials help him get access to the swift code, thereby encouraging his mastermind plan. The people involved were immediately arrested by the officials with necessary charges.

However, this is not the first time such a scam has broken out in the open. Previously, big shots like Vijay Mallya, Lalit Modi, Harshad Mehta and others have fooled the government.

Here the question arises, “How can we really put an end to these fraudulent activities and safeguard the money of the innocent taxpayers?”

Many experts and specialists have been evaluating the possibilities to stop actions affecting the economy of the country.

One of the solutions to cease or rather curb the frauds and scams taking place every now and then in the country is to incorporate the latest blockchain technology.

 The heart of all transactions is the "Database". Blockchain technology works on an open source peer-to-peer network that enables the storage of the Transactions in a ledger. It maintains records of all the transactions i.e. transfer and payments that have occurred in the course of time. This information can be stored distributed to the users, thereby providing a highly safe, secure, reliable and transparent platform. The information though available to all users cannot be copied by anyone.

If the Banking system adopts this cutting-edge Blockchain Technology, it will unequivocally reduce the risks of such scams in future and also enhance the working of the banking system, thereby, giving a push to the economy.