Bitcoin Forum

Blockchain or Banks: Which has a Better Security for Financial Transactions?

By now, it’s highly likely that most of us understand how Blockchain technology has dramatically changed and how the world operates considerably. The Blockchain system is an openly distributed digital ledger technology behind the cryptocurrency industry. According to Alex Tapscott, the co-author of the Blockchain Revolution, the Blockchain technology is changing the concept of banking […]The post Blockchain or Banks: Which has a Better Security for Financial Transactions?


Read more: https://www.trackcoinmarket.com/en/crypto-news/33301/blockchain-banks-security-financial-transactions

No system abounds without it's different flaws,with that being said we've all been using and still use our conventional banking system when storing our finances,and how many of us have lost our money through it???.. Only maybe a handful, the traditional banking system is safe,secure and almost impossible to fall prey to hackers

What the blockchain brings to the party is more transparency,as it operates on a public distributed ledger,open for everyone to see.
It also stores information in them that are unalterable,informations of every transactions undergone since day one
But the system is not also without it's various flaws,due to anonymity,scams are the other of the day in the system,though there are numerous ways to avoid them

As regards which is safer I'll have to go with the banking system,due to its age long presence and stability,but the blockchain is coming along pretty fast and hopefully they both can work side by side for far more effective and efficient transactions

If we talk about the present scenario then no doubt that banks has better services and security methods that can satisfy a customer easily as in present time, bank is the most common place where people make their investment and get profit in terms of interest rate and moreover bitcoin is still decentralised crypto currency in almost every part of the world but we never no the future, as once bitcoin get centralised all over the world, no currency or investment can match the frequency of bitcoin.

I think for the moment the fact is that bank transactions are still much safer than the blockchain, where if our money is taken in a bank or someone hacking, we can still track who hacked it and many big banks that helped our case to completion, unlike blockchain which is anonymous then it will be very difficult to track where our coin coin is going, and moreover blockchain is not regulated by the government so it will be difficult if it moves with the law

it depends who will use the services. because if you need security and guarantees, in this case, banks, and if the speed and irrevocable transactions, with a low Commission, then cryptocurrencies

Both systems has put a lot of effort at ensuring security of transactions, as money is a commodity no one wants to lose.

There are also other aspects of a transaction, cost, speed, reliability.

I would not like to draw comparisons as both systems has its own flaws and strengths.

Banks have proven themselves to be the top position, Blockchain wants to overcome must be very difficult. Bank than Blockchain in terms of reliability, security, convenience, popularity.
Bitcoin is a decentralized currency, so trust is not high. In addition, some people who do not know about electronic money transactions can be completely deceived by hackers. Because, Bitcoin trading and daily use need high level of education.

Vote on bank, i mean, bitcoin yes have security for transaction. But bank have regulation that can protect it 's user for now. At least what we still used now is bank, and if abuse happen or bad thing happen with transaction, it can easy to trace if with bank.

In terms of security blockchain technology is more secure but you're much safer transacting with a bank than on the blockchain, that's because you're far more protected with a bank whereas with the blockchain if you make a mistake or get scammed etc there's no one to recover your losses for you.

blockchain is more secure. sorry guys above, but its true

what you dont realise is if you take away the politics and just concentrate on the actual funds security. you will see it more clearly.
the reasons banks need security guards that are usually contracted in, thus not part of "the bank". the reasons banks need governments again not part of "the bank" and why they need authorities and auditors and other third parties is because banks security is bad

its why banks are looking into DLT(closed network blockchains) so they can sack the security guards, sack the auditors reduce the political bureaucracy and just let their DLT do it all more efficiently and cheaper

banks are just a service provider offering something of a convenience. not security. these days with "tap to pay" are handled by third parties (visa, mastercard, applepay) which are not "banks" and so while convenient.. banks are starting to refuse fraud refunds and instead blame users for not securing their payment tool(nfc card) properly.

what people dont know is that banks dont actually "getback" peoples funds from a thief/ scammer. instead they just add balance into victims account. and then take it off their allocation of accepted loss account. this is not security. its creative accounting for convenience.
why waste a bankers labour time investigating loss whn they can just give a victim the money far cheaper. think about it the time to locate theives, get lawyers involved file court claims always costs mor than the average victims amount lost.

but bitcoin is self securing. you dont have to worry about target, sony, apple leaking people credit card details. you dont have to worry about identity theft to get access to accounts.. the only issue bitcoin has is its less convenient than using these third party services

blockchain can be adapted personally and security levels are taken into account by the people concerned, but the world's human resources today are still fixated on capitalism that is accustomed to conventional bank systems, they are not ready to do everything independently.

the process of adapting the bank system to blockchain is still too complicated because it crashes into certain procedures, the blokchain transaction cannot be canceled or returned if there is a user error, this is still dangerous and there are still virus loopholes that can go directly to the user. The bank system is still better at this.

All depends on which Blockchain you are talking about. If you mean the Bitcoin Blockchain, then yes, it has a lot more security. If you are talking about a small shitcoin with a shitty code, then a bank might be more secure.

Any system is based on a point where there is a need for human interaction at some level. When it comes to the banking system, there are few people to deal with the whole system but on the other hand, blockchain is based on decentralization where the number is high. Completely eliminating human interaction is almost impossible and so that the possibility of hack/scam/mistake. However, certain precautions can definitely help to reduce such possibilities.

Security and legal guarantee will probably be the Bank, Peer trading will be safe and when the way of payment is serious, no fraud!

this again is one of those false comparisons that people make between bitcoin and something else. you really can't compare bitcoin and blockchain technology in general with much else because it is one of a kind.

in this case the security is different. when using banks there is certain security since bank, as a financial institute, is responsible for handling your money and in case of any security issues they are obligated by the law to compensate you. but at the same time there are other security risks such as numerous cases of credit card frauds,... using bitcoin you gain a different kind of security but then again it is decentralized and has irreversible transactions. if your money (bitcoin) is stolen, it is most probably gone for good and there is nobody to go to and cry for help!

for now, of course the most reliable security transaction is the Bank. actually this is simple. depending on the platform and the currency we use for transactions.

why is blockchain still unable to handle this ?
because in it there are still many problems that can be considered "vital" so when this issue is exposed, this will also be a loss for blockchain.

in blokchain transactions are superior and cheaper than banks, and in terms of security, I think everything is safe, if we don't do carelessness in financial transactions, whether it is a blockchain or a bank, then both have been tested for security, Blokchain also has a market source in financial transactions that can be trusted. like a bank in general

Yes....I will say blockchain has the better security for financial transactions because ever since I know about cryptocurrency, I haven't heard about blockchain been hacked though some wallets maybe hacked but not blockchain. And as we all know, banks are many times hacked and reasonable funds transferred to an unknown offshore account.

To me I think we will have more better security with blockchain later in future. As soon as the hacking problem is solved, and users judiciously safe guard their wallet details, then the blockchain will be more safer.

Blockchain technology can change how financial firms do business compared to bank systems, the blockchain system is more efficient and accurate but if the bank adopted this methodology, we can expect to see more secure, reliable, and fascinating ways of transferring funds and important information. So I think blockchain is better in security for financial transactions.

In Blockchain, if you mistakenly send your transaction to other party than the intended one then you are on sole mercy of that party to return your funds. Here, even though you know where funds went but still can't do thing about it.

On the other hand, with banks you can complain about transaction and reversal can be processed.

In this regard, I choose the absolute security blockchain that can trust no one can get their money without my consent. The banks are controlled by them and I can only give them money to keep them instead of the ones I hold, and if the bank happens to have my money,It will do fly right away.

Theoretically its bitcoin blockchain but it will only happen once it has some sort of legal grounds!
Because you never know when it gets completely ban by certain country. Also there are two contexts to these things.
1) if you are talking about the inherent security as in what attribute one holds, it definitely is blockchain,bitcoin specifically.
2) if its about the security as in stability and legality of this issue, and will your asset would have any value later on then it definitely is bank.
Period.

for now the bank is still the best in terms of security, although bitcoin also has pretty good security but bitcoin does not have a regulation that protects its users, the bank has a regulation that protects its users at the time of transaction, so if an error occurs at the time of the bank transaction can directly track his.

It completely depends on the user as the blockchain is only safer if the user is capable of securing their own wallets, newbies would be better off just going to a bank

Given the forum in which this question is posed, you will likely have more people than most arenas argue that blockchain is more secure however I believe, in the current circumstances, banks are more secure. They are many, many years ahead of blockchain when it comes to security of money and, besides that, most people are satisfied with the security their bank offers (they may be unhappy with other components but not the security aspect).

Banks are archaic structures. And they have a lot of disadvantages compared to the blockchain. Bank can be hacked - blockchain can not be hacked. The bank may close and stop working. Blockchain is something that can never be destroyed because it is duplicated on thousands of other servers.

I will look at it from a very simple but deeper perspective. Blockchain security is in the individual's hand while bank is a third party security. So if one does hate the banking system, then they might likely fall to the blockchain. The blockchain to me is very risky if you are not the careful type, a figure off your code, your coins are gone for good  ;D

I am not being in blockchain for a very long time period but for banks i can say that after the industrial revolution the financial system is completely changed and the security and value of banks are more because they have physical existence of value and money and banks are doing very big decisions and they invested in different multinational companies which provide them a good outcome over it, Crypto is not stable this is the biggest reason due to which banks are not ready to accept it.

Blockchain technology is a technology that is feared by some banks.
everyone already knows about the benefits of banks, banks are not anonymous, so I doubt the security of the bank, in 2016 hackers succeed to steal $ 81 million in money from the central bank of Bangladesh.
hacking money in each bank account using the skimming method, some developing countries become their target.

even though blockchain is transparent and everything can be checked by everyone. but all transactions and data are stored securely, hackers cannot change data every block.

Each transaction has security holes. However, between Blockchain and the bank there are various holes.
First, we will talk about banks. Traditional banks are places where money is kept and transactions. The security of the bank is closed, we can transact by identity card and some identification. Therefore, the vulnerability to hackers seems to be impossible.
Blockchain is an online trading platform, every transaction is decided by the individual user. Therefore, mistakes in transactions will create opportunities for hackers to penetrate.

Hello,

I think it depends of the user. For common people that are not familiar with crypto and the potential threats that could happen without taking all the possible securities bank is the best solution even if fees are higher. For rained people that carefully use crypto with all the careful needed then crypto is best.

Currently, banks are perform better than blockchain in terms of security. These banks are centralized and every transaction is being kept by highly secured system that not open to the public. While blockchain being a decentralized system, its security is not that effective especially against hackers.

Both have their own Pros and Cons.

I prefer Blockchain as it is an open ledger and nothing is hidden within its network. Blockchain is the future and many Big companies and banks are working on this technology. It has some loopholes, but that can be taken care of.

I think, everyone who understands blockchain will answer that blockchain is safer, faster and very simple.

the bank will become a secondary service, and the blockchain will be a primary service, bitcoin and other altcoins will be used for all sectors of our lives in the future.

With how the ledger for Blockchain is open for anyone to see and yet so that no one is able to manipulate it, I think it’s the ideal platform for a better security transaction.

As of now, banks offer better security because they guarantee your funds, whereas if money is lost or stolen in crypto, no one is backing it so it's gone for good.

Also the need for exchanges makes using crypto risky. Once distributed exchange networks and other security measures are put in place you won't be able to depend on crypto for security.

Some coins do not have strong security, but I am sure of bitcoin security feature to be a difficult-to-be-surmounted top notch one because when you evaluate hack attempts to success rate for both bitcoin and the banks, you will see bitcoin indisputably wins

The term 'blockchain' is kinda generic and missleading.
You got networks like Bitcoin (the strongest and most secure) and various others ETH, DASH, ZEC, XMR. With some security issues.
Then you got EOS with great ideas but no network yet. I'm not sure how that's going to work.

Then you got layers like LN which builds on the existing network of Bitcoin.

I'm not sure exactly how it will all work but it seems more layers for other types of contracts and applications are being thought of and designed right now.

All with Bitcoin being the foundation network.
That's how I understand it anyway.
 

The most characteristic and the most important reason why millions of people are investing into bitcoin is that bitcoin promises its investors to provide safest and the most confidential transactions and this is the reason why millions of people around the world are investing into bitcoin as they know that they are investing their money at right and safe place as bitcoin transactions does not involve any third party seizure so no third person has the right to see the transaction between two and thus provide user anonymity while on the other hand banks are lacking somewhere in this.

But in most countries, any decent banks protect its customers against the fraudulent transaction. And you get refunded for any loss. The funds on your bank account are protected by the state in case the bank collapse etc

For today, more guarantees and security has unfortunately the banking system. The bank has contracts, licenses, guarantees. In the cryptocurrency world there is only faith.

From my opinion, blockchain is better for security because actually no one can steal your coin in the blockchain unless someone have your key.
More over, blockchain is decentralized, so it will be more secure than centralized system.

I think bank is more safe than cryptocurrency because there are some real people "manage" it.
Meanwhile crypto isn't, so if something bad happen we can't complain to anybody

i think blockchain is safe technology to use for security for financial transactions.
as you know blockchain is the most transparent system to run anything.bank is really risky than blockchain.

Though banks are known for the best security in the present as it is the most popular form of investment and now there are millions of people around the world who are investing in banks and saving their money as banks provide the safest investment but bitcoin and other crypto currencies are the safest and the most secure one as their physical form does not exist and it only are in digital form as now people are trusting crypto currencies more as its transactions does not involve any third party seizure and also provides user anonymity.

Blockchain technology can better security than banking on financial transactions because blockchain offers more advanced and transparent digital technology than banking. And if you were stolen on a blockchain, it could just be your fault.

It is definitely blockchain over the banks! A friend complained bitterly as regards the poor mode of operation of the banks especially when he had some very crucial transactions to make; really made him have some losses. I overheard his groanings and out of concern too, I just told him that it's high time the banks switched their modus operandum to that of blockchain! This will of course curb a lot of hassles being presently experienced.

Bank system is secure because there are many peoples maintaining your account, protecting the database, and provide services for you.
But in blockchain, you have your own responsible to secure and protect your wallet. Basically, no one can crack the blockchain, so the security is better than common database in bank system.

we all will agree that change is inevitable in every endeavor of life, once upon a time the banking system was the method of financial transactions, without doubts, the banking system has got it's loopholes and shortcomings, and that's what the blockchain technology has come to rectify. So 10 years back my answer would be that i prefer transactions from the banking system but the world has evolved and the blockchain technology is the new and safest method of financial transactions as it stands. the blockchain technology is decentralized thereby giving you the sole control over your financial transactions without a third party interference.

different from me, in my opinion blockchain is safer against hacking. because you have to hack all the blocks. different from banks, where the centralized system is easier to hack

blockchain is always my best choice for financial transactions because I like its anonymity and system. For me, blockchain is advanced technology and has a good security to use.

When it comes to safety, it's probably a more appropriate choice, as it provides you with a steady stream of interest, but bitcoin does not.

The problem is still, we have the blockchain on the side A and the banks on the side B. But it isn't what we need, we need the side B merged with the side A. The blockchain is secured by maths, your bank account is secured by a refund from your bank.

I wonder why there are still people who compare this problem, bank or blockchain?
even though indirectly they are not contradictory, because crypto users still need a bank, and for security issues it still depends on each user

Blockchain technology is immutable, transparent and public ledger. It provides decentralization for all people. Banks are centralized anf we don't know the inner transaction to it. Banks regulated the economy, it controls the flow of money to the people and regulate the growth or fall of economy.

the blockchain is safer, and blockchain is believed can to improve the fintech industry, and of course, it will change manual and rigid ways.

not only safe, but the blockchain also increases accurate and fast transactions for cross country transactions.

Decentralized can solve with every attack, because there is always at least one server running to protect the transaction.

Both have different kind safety security, we all should know banking industry are very secured specially the interst of their investor need to present idenfication before you can approve to put funds in the bank.

As of now blockchain is continue to improve in term of safety blockchain is front in the hackers, but the safety of the users is his hand need to choose good exhange with high security  fetaure with strong keys.

It is safer to conduct transactions in banks. They take security measures to ensure that your funds reach the addressee. It is very fast and convenient to make transactions in the blockchain, but you can make a mistake in the address, or your transaction can get stuck in the blockchain. In this case, you will not be able to return your money.

if the one that has been tested for security is a bank, while Blockchain is still developing, it is not fully 100% because officially the government has not approved the blockchain as a safe transaction. although for me personally the blockchain platform is very simple to use and fully uses the system transparently for its users

I agree,of course the bank has better because it is regulated. Whatever happens to your funds, it cam ne returned whatever happens because of insurance. In banks they are handling our funds and security is one of the reason we trust them. In blockchain technology, we are  handling our funds and its our responsibility what happens to them if we are careless with our private keys.

It all depends on the angle you are looking at it from. Irespective I will always choose Bitcoin over banks because:

1. It's highly secured
2. It's efficient
3. The charges are extremely low
4. The transaction is instantaneous
5. User's have 100% control if their assets

as long as the bank can't be transparent, we all don't know what they are doing with our money
whereas with the blockchain, it might be able to help us in tracing the flow of funds that we save in the bank, provided the bank has adopted blockchain technology

You do actually know well what the banks do with your money, they build their own fortune and give
You a tiny percentage and say that what they do is just business, they are somewhat right in many
Perspectives but what they don't tell you is that what you are getting by leaving your money with them
Is really a small percentage of what they're making themselves. let's see what is the best thing a bank
Can do? basically a bank would give out loans with high interest with a solid collateral worth more than
The actual loaned amount. what banks have is the support of governments, if you don't pay back the loan
They will have your collateral liquidated but if you were to do this on your own, you'd never be able to
Legally liquidate a collateral because the law doesn't allow you to act like a bank. banks never really keep
Your money inside their vaults, they constantly spend your money over and over to keep their own profit
From your money, all you do is that you give them your money because you are too stupid to work with
Your own money and earn all the profit, banks only work if there are enough stupid people in the world.
Is your money safe with them? absolutely because they are smarter and you are not.

I believe Blockchain has a better security for financial transactions because it no needs third parties like banks to do the transactions, very low fees and fast transactions. It should be secured and also transparent so there will be fraud in it.

For me Blockchain and Banks has the same security measure for their financial transactions however they have also this thing called advantage. each of them has there own advantage on each other. correct sample for blockchain you can send money without being known to the person you sent the money to, on Banks you can be sure that the money you sent is can be tracked.

I think blockchain has a more modern and secure technology. Banks have been working for a long time but I think that their time is running out and it's time to introduce blockchain technology !

It is difficult to say which of them is safer, as bitcoin is very young, and banks are more experienced. But if you look to the future, the prospects for bitcoin technology are much better. Money transfers using it will be much cheaper and safer.

Bitcoin is a more modern technology. And I think that the designers did a good job on him precisely in order to surpass the legacy banking system. I am for technological progress and money transfers without the intervention of third parties.

Now I increasingly use bitcoin for money transfers, especially for international ones. I use my Bank and Bank card only to pay for goods in local stores.

I think when you use bitcoin to transact, it will help you keep your financial secrets rather than when you use the bank to the transaction. For bitcoin deals, you do not need to provide too much of your personal information. But for banking transactions, you must provide all your personal information. So, when hackers attack the bank, they can steal your personal information and carry out the act of appropriating your property.

I think both banks and blockchain have effective security measures. But if we’re talking about faster, more efficient and convenient services, it would have to be blockchain. I mean, the technology would allow you to handle your transactions from pretty much anywhere, right? No need to make calls or pay visits to bankss. And no holidays!

The blockchain in the crypto currency market which ensures the security  systems and so no body can manipulate the above for their personnel benefits .Even the banks are trying to adopt the block chain technology  to their systems and the major financial institutions are also thinking to adopt the above.The blockchain technology can change the face of the entire economy of the global community so that we can eradicate the mal practices in connection with the economy. The block chain technology is linked with the modern technology.It will be more secure in the financial transactions with out a third party interference also it eleminate the manual efforts. and reduces the time and transaction cost..In my opinion the block chain technology is much suitable to introduce the world wide financial institutions to bring under one umbrella. So that it will be quiet transparent and secured for the financial transactions world wide.

Analysing the present situation, I will still go for banks instead of blockchain. It's not that I will stick to bank, if blockchain show more potential in future, I will go for it. Right now as everyone knows, bank provide better security for financial transaction.

Banks is a centralized institution which has power over your sving with them and can hold on to it if found one thing which you have to submit to their request but blockchain is more of having control over your funds and require no authority from any one to speed it which make blockchain more unique to bank .

Blockchain is far better than blockchain. Having funds on banks doesnt assure the safety of your funds unlike blockchain which gives you tge full control over you money. Blockchain offers tge freedom from third trusted party meaning less potential vulnerabilities and risk from lossing your funds. Blochain is more simplier and safer than banks since you have direct transaction and no intervention from anyone is needed. This is why, people should be encourage to use wallet which gives you the full control on funds, lije HODLER wallet which is the only open source multi wallet.

Many see that banks have security in transactions and this can be said because many people have believed in banks. The Blockchain is also safe in transactions and this is still anonymous so that the identity of the holder can be stored. Both are safe and have a good impression with all transactions.

The reliability of transactions, which are carried out using the technology of blockchain, is multiplied by the number of nodes that support its work. Accordingly, cryptocurrency transactions are more reliable. At the same time, it is necessary not to confuse volatility and fluctuations in the price of cryptocurrencies with the reliability of transactions.

In my opinion, the blockchain is safer, because through the bank there are several weaknesses such as fraud and crime that use various modes, so we lose money. If using a blockchain such an event is difficult to occur, because of peer to peer transactions.

At present, I will choose banks over blockchain because banks has already proven itself and blockchain still need to prove to many as we're aware of  the fact that it is not accepted by all.

i agree on what wodomi have said , banks do really have weakness because any one can stole your account and use for illegal purpose such as carding    while in blockchain or cryptos  i have never encounter any problems in regards to using it .

but when it comes to legality or reputation , blockchain cannot possibly won on traditional banks  . that is also the reason on why many people are still using banks and will only trust banks even if blockchain will became popular later on the future .