Application of Blockchain Technology in Improving Security and Efficiency in Online Banking Transactions

Thesis Abstract

Abstract
The rapid advancement of technology in the digital age has significantly transformed the banking and finance sector, leading to the widespread adoption of online banking services. However, the increased reliance on digital platforms for financial transactions has also brought about new challenges related to security and efficiency. In response to these challenges, this thesis investigates the application of blockchain technology as a solution to enhance security and efficiency in online banking transactions. The study begins with an exploration of the background of online banking and the evolution of blockchain technology. It identifies the problem of cybersecurity threats and inefficiencies in traditional banking systems, highlighting the need for innovative solutions to address these issues. The research objectives are outlined to investigate how blockchain technology can be leveraged to improve security and efficiency in online banking transactions. The methodology chapter presents a detailed description of the research approach, including data collection methods, sampling techniques, and data analysis procedures. The study employs a mixed-methods approach, combining qualitative interviews with banking experts and quantitative analysis of online banking transaction data. The data collection process is designed to provide comprehensive insights into the potential benefits of blockchain technology in enhancing security and efficiency in online banking. Findings from the research reveal that blockchain technology offers several advantages in the context of online banking, including enhanced security through cryptographic encryption, decentralized transaction verification, and transparency. Moreover, the application of blockchain can streamline transaction processes, reduce costs, and improve the overall efficiency of online banking operations. The discussion chapter critically analyzes the implications of these findings and explores the potential challenges and limitations associated with implementing blockchain technology in online banking systems. In conclusion, this thesis underscores the significance of integrating blockchain technology into online banking platforms to address security concerns and enhance operational efficiency. The study contributes to the existing literature by offering practical insights and recommendations for financial institutions seeking to leverage blockchain technology effectively. Overall, the findings suggest that adopting blockchain technology in online banking transactions can lead to a more secure and efficient financial ecosystem that benefits both customers and financial institutions.