Blockchain technology can be defined as a distributed ledger technology for storing information in a manner that makes it tamper-proof. It works on protocols designed to make an agreement among different parties who do not trust each other so that they can work together to achieve different purposes which benefit the whole group.

In the current system of banking, blockchain technology can be used to store information in a decentralized manner, making it accessible to all and verifiable by everyone. This technology is permanent, meaning that records or information stored using blockchain technology cannot be lost.

The advantages of blockchain technology in the current system of banking include:

• Open: Anyone can become a participant in the contribution to blockchain technology without requiring permission from anybody.
• Verifiable: Blockchain technology allows everyone to verify the correctness of the information using zero-knowledge proof.
• Permanent: Records or information stored using blockchain technology are permanent and cannot be lost.
• Free from Censorship: Blockchain technology is free from censorship as it does not have control of any single party.
• Tighter Security: Blockchain uses hashing techniques to store each transaction on a block that is connected to each other, making it more secure.
• Cost Reduction: Blockchain reduces the cost for businesses and gives trust to the other partner.

Here are the disadvantages of blockchain technology in the current system of banking:

• Scalability Issues: Blockchain technology is still in its early stages, and it faces scalability issues. It can only process a limited number of transactions per second, which can lead to congestion and slow down the system.
• Regulatory Uncertainty: The regulatory environment for blockchain technology is still unclear, and it can create uncertainty for banks and financial institutions that want to adopt this technology.
• Interoperability: Different blockchain platforms have different protocols, which can make it difficult for them to communicate with each other. This can create interoperability issues and limit the potential of blockchain technology.
• Energy Consumption: The process of mining, which is used to validate transactions on a blockchain, consumes a lot of energy. This can lead to environmental concerns and increase the cost of transactions.
• Security Risks: While blockchain technology is secure, it is not immune to security risks. Hackers can still find ways to exploit vulnerabilities in the system, and there have been instances of hacking and theft of cryptocurrencies.