Blockchain Technology In Banking is an increasingly popular topic in IELTS Writing Task 2. Based on recent exam trends, this subject has appeared with moderate frequency and is likely to continue being relevant in future tests. Let’s explore a sample question that closely resembles actual IELTS prompts:
Some people believe that blockchain technology will revolutionize the banking industry, while others think it poses significant risks. Discuss both views and give your opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the potential benefits of blockchain technology in banking
- Explore the possible risks associated with its implementation
- Provide a personal opinion on the matter
Now, let’s examine three sample essays of varying band scores to understand how to approach this topic effectively.
Sample Essay 1 (Band 8-9)
Blockchain technology has emerged as a potentially transformative force in the banking sector, sparking debate about its implications. While proponents argue that it will revolutionize financial services, skeptics warn of inherent risks. This essay will examine both perspectives before presenting my own viewpoint.
On one hand, blockchain enthusiasts assert that this technology could fundamentally reshape banking operations. The decentralized nature of blockchain allows for more secure and transparent transactions, reducing the risk of fraud and eliminating the need for intermediaries. This could lead to faster, cheaper, and more efficient financial services, benefiting both banks and consumers. Furthermore, blockchain’s immutability ensures an unalterable record of transactions, enhancing accountability and trust in the banking system. These advantages could potentially democratize access to financial services, particularly in underserved regions.
Conversely, critics argue that blockchain technology poses significant risks to the banking industry. One primary concern is the regulatory challenges it presents. The decentralized nature of blockchain makes it difficult for governments and financial institutions to monitor and control transactions, potentially facilitating illicit activities such as money laundering and tax evasion. Additionally, the energy-intensive process of maintaining blockchain networks raises environmental concerns. There are also worries about the scalability of blockchain technology and its ability to handle the enormous volume of transactions processed by traditional banking systems.
In my opinion, while blockchain technology does present certain risks, its potential to revolutionize banking outweighs these concerns. The enhanced security, efficiency, and transparency offered by blockchain could lead to a more robust and inclusive financial system. However, I believe that careful regulation and gradual implementation are crucial to mitigating potential risks and ensuring a smooth transition.
In conclusion, blockchain technology has the potential to significantly impact the banking industry, offering both opportunities and challenges. As with any transformative technology, its success will depend on how effectively it is implemented and regulated. (309 words)
Sample Essay 2 (Band 6-7)
Blockchain technology is a hot topic in the banking world today. Some people think it will change banking for the better, while others worry about the risks. This essay will look at both sides of the argument and give my opinion.
Those who support blockchain in banking say it has many benefits. Firstly, it can make transactions more secure and harder to hack. This is because blockchain uses a special system that is very difficult to tamper with. Secondly, blockchain can make banking faster and cheaper. Without the need for middlemen, transactions can happen quickly and with lower fees. This could be especially helpful for people in poor countries who don’t have easy access to banks.
On the other hand, there are concerns about using blockchain in banking. One big worry is that it might be hard for governments to control. This could make it easier for criminals to move money around without getting caught. Another problem is that blockchain uses a lot of energy, which is bad for the environment. Some people also think that blockchain might not be able to handle all the transactions that banks need to process every day.
In my opinion, I think blockchain has more potential to help than harm the banking industry. While there are risks, I believe these can be managed with careful planning and rules. The benefits of more secure and accessible banking for everyone are too important to ignore.
To sum up, blockchain technology in banking has both good and bad points. It could make banking better for many people, but there are challenges to overcome. I think that with the right approach, blockchain can be a positive force in the banking world. (276 words)
Sample Essay 3 (Band 5-6)
Blockchain technology is a new thing in banking. Some people think it’s very good, but others think it’s dangerous. I will talk about both ideas and give my opinion.
People who like blockchain say it’s good for banks. They say it makes money safer and harder to steal. Also, it can make sending money faster and cheaper. This is good for poor people who don’t have banks near them.
But some people don’t like blockchain. They worry that bad people might use it to hide money. They also say it uses too much electricity, which is bad for nature. Some think it might not work well for big banks that need to do many money transfers every day.
I think blockchain is more good than bad for banks. It can help many people use banks easier. But I think we need good rules to make sure it’s safe.
In the end, blockchain in banking has good and bad points. I believe it can help make banking better if we use it carefully. (149 words)
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with well-developed ideas
- Presents a clear position throughout the response
- Uses a wide range of vocabulary and grammatical structures with flexibility and precision
- Organizes information coherently with clear progression throughout
- Uses cohesive devices effectively
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, though conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary and grammar with some errors that do not impede communication
- Arranges information coherently with clear overall progression
- Uses cohesive devices, but not always appropriately or accurately
Band 5-6 Essay:
- Addresses the task only partially; format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses limited range of vocabulary and simple grammatical structures
- Presents information with some organization but there may be lack of overall progression
- Makes inadequate, inaccurate or over-use of cohesive devices
Key Vocabulary to Remember
- Blockchain (noun) – /ˈblɒktʃeɪn/ – A digital ledger of transactions maintained across a network of computers
- Revolutionize (verb) – /ˌrevəˈluːʃənaɪz/ – To change something completely and fundamentally
- Decentralized (adjective) – /diːˈsentrəlaɪzd/ – Distributed or delegated away from a central authority
- Immutability (noun) – /ɪˌmjuːtəˈbɪləti/ – The quality of not being able to be changed
- Cryptocurrency (noun) – /ˈkrɪptəʊˌkʌrənsi/ – A digital currency that uses encryption techniques to regulate its generation and verify fund transfers
- Intermediary (noun) – /ˌɪntəˈmiːdiəri/ – A person or organization that acts as a link between people to try and bring about an agreement
- Scalability (noun) – /ˌskeɪləˈbɪləti/ – The capacity to be changed in size or scale
- Regulatory (adjective) – /ˈreɡjələtəri/ – Relating to or concerned with regulation
In conclusion, blockchain technology in banking is a complex and nuanced topic that requires careful consideration of both its potential benefits and risks. As you prepare for your IELTS Writing Task 2, remember to analyze the question thoroughly, structure your essay clearly, and use a range of vocabulary and grammatical structures appropriate to your level.
To further improve your skills, try writing your own essay on this topic and share it in the comments section below. This practice will help you apply what you’ve learned and receive feedback from others. Additionally, you might want to explore related topics such as how digital currencies could revolutionize banking or the impact of cryptocurrency on the traditional banking system to broaden your understanding of this rapidly evolving field.