HSBC Online Banking Outage Showcases Bitcoin Network Strength -

HSBC Online Banking Outage Showcases Bitcoin Network Strength

Bitcoinist_Online Banking

Earlier today, the entire online banking platform of popular institution HSBC became inaccessible, leaving millions of customers without access to their finances in an online manner. While technical issues can happen at any time, it is the second time in as many days this type of event has transpired. The Bitcoin network, powered by blockchain technology, has never gone down in its near seven years of existence.

Also read: Blockchain Commuication Could Replace Email, IM, add Trustless Security

HSBC Online Banking Has Serious Issues

Bitcoinist_Online Banking HSBC

For most consumers, online banking is the go-to form of accessing financial services in this day and age of digital products and online services. However, once that service becomes inaccessible to millions of users, chaos ensues. To make matters even worse, this issue has been plaguing the banking giant for two days in a row now.

Oddly enough, the HSBC mobile banking services are not affected by this outage. Not every bank customer wants to use their mobile device to check their balances and complete transactions, however. As long as the personal banking portal remains inaccessible, users will not be able to log in through their laptop or computer.

One of HSBC’s spokespeople stated that:

“There is a complex technical issue with our internet banking systems, and our IT team has been working nonstop since yesterday morning to find a solution. This has involved many tests, diagnostics and trial runs. We are getting closer to solving the problem, but are not there yet. We can, however, confirm this is not a cyber-attack or any other malicious act. ”

While it is positive to note this has nothing do with a cyber-attack, the problem needs to be resolved sooner rather than later. Furthermore, HSBC’s reputation had been taking major hits last year, when the bank had to process roughly 275,000 transactions later than expected due to a different internal failure. Among those late transactions were several wage payments between companies and employees.

Despite last year’s promises from the overarching Royal Bank of Scotland to revamp its computer system, it looks like there is still a lot of work to be done. HSBC customers can only hope their bank decides to start offering reliable online banking services in the near future.

Bitcoin Network Has No Downtime

Bitcoinist_Online Banking Bitcoin Network

One of HSBC’s major competitors is not suffering from these major accessibility issues. The Bitcoin network, which has been around for close to seven years now, has never had a single day of downtime. Despite some technical fixes that had to be applied throughout the years, the network has always been accessible to people from all over the world.

Bitcoin provides financial services to anyone who wants it, regardless of which bank they use or their credit history. Digital currency is a new form of payment that works on a global scale and is always available to check balances or send and receive transactions. In fact, a lot of big banks are looking to copy Bitcoin’s technology, although it is doubtful they will be able to offer a similar service.

What are your thoughts on online banking outages? How can these be prevented, other than by using blockchain technology? Let us know in the comments below!

Source: Telegraph UK

Images courtesy of HSBC, Shutterstock

Jp Buntinx

Jp Buntinx

JP Buntinx is a freelance Bitcoin writer and Bitcoin journalist for various digital currency news outlets around the world. In other notes, Jean-Pierre is an active member of the Belgian Bitcoin Association, and occasionally attends various Bitcoin Meetups in Ghent and Brussels

  • mably

    I guess Coinbase and co could go down as well. You are just comparing apples and oranges.

  • What you’re stating in your article is completely irrelevant. Bitcoin is a distributed database which acts as a ledger. Just like HSBC has a ledger in the backend. What you’re talking about in your article are front-end services.

    Moreover, Bitcoin can face multiple issues, such as:

    – Blockchain fork, which already happened in the past (one happened last year actually).

    – Transaction DoS, which happened numerous times already (c.f. scaling BTC debate), and prevents transactions from being processed for several hours.

    Of course these issues have solutions. For example, if you are on the wrong side of the fork, you just have to switch to the other side. And if there’s a mempool congestion you just have to double spend your coins and increase the fees for your transaction to be prioritized by miners (if they choose to process it of course).

    Just like Bitcoin, with HSBC you also had other ways of accessing your funds. Like using their mobile application for example, or using their phone banking system or even going to a HSBC branch in person.

  • Marco Polo

    I think he ment ” last year, when the bank had to process roughly 275,000 transactions later than expected due to a different internal failure.” where blockchain would not have an issue with processing and reprocess past transactions.

  • Marco Polo

    The online banking could go down but the 275,000 transactions would have gotten processes.
    The backbone would be ticking while the front end can get worked on.

  • mably

    Those 275,000 transactions have been processed as far as I understand and still probably faster than some Bitcoin transactions during the last spam attack on the network.

  • Kenneth Armstrong

    Alert, Imminent world financial crash

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