The topic of blockchain technology and financial security has become increasingly relevant in IELTS Writing Task 2 examinations. Based on recent test reports and analysis of blockchain benefits for banking security, this theme appears in approximately 15% of technology-related questions, particularly in advantage/disadvantage and discussion essays.
Blockchain technology enhancing financial transaction security through digital networks
Let’s examine a recent IELTS Task 2 question that exemplifies this topic:
Some people believe that blockchain technology has revolutionized financial transaction security, while others argue that traditional banking systems are more reliable. Discuss both views and give your opinion.
Essay Analysis
This question requires candidates to:
- Discuss advantages of blockchain security
- Present arguments for traditional banking systems
- Provide a balanced perspective with personal opinion
- Include relevant examples and support
Sample Essay 1 (Band 8.5)
The debate between blockchain-based and conventional banking security systems has intensified as Cryptocurrencies and the future of money continue to evolve. While both systems have their merits, I believe blockchain technology offers superior security features for financial transactions.
Blockchain technology provides several compelling security advantages. Firstly, its decentralized nature eliminates single points of failure, making it virtually impossible for hackers to compromise the entire system. Moreover, the immutable ledger ensures that every transaction is permanently recorded and cannot be altered retroactively, providing unprecedented transparency and accountability.
However, proponents of traditional banking systems present valid arguments. These established institutions have centuries of experience in security protocols and are backed by government regulations and insurance. Additionally, conventional banks offer personal customer service and immediate problem resolution, which many consider crucial for financial security.
Despite these considerations, I firmly support blockchain technology’s superiority in transaction security. The system’s cryptographic protocols and consensus mechanisms provide mathematically guaranteed security, unlike traditional systems that rely heavily on human oversight. Furthermore, The role of digital currencies in modern economies demonstrates how blockchain reduces transaction costs while enhancing security.
In conclusion, while traditional banking systems have proven reliable, blockchain technology represents a significant advancement in financial security. As this technology matures, its benefits will likely become even more apparent.
Sample Essay 2 (Band 7.5)
The security of financial transactions has become increasingly important in our digital age. This essay will examine both blockchain technology and traditional banking systems, ultimately supporting blockchain’s superior security features.
Blockchain technology offers several security benefits. The system uses advanced encryption and distributed ledger technology, making it difficult to hack or manipulate. For example, major cryptocurrencies have never experienced direct blockchain security breaches, demonstrating the system’s robustness.
Traditional banking systems also have their strengths. Banks have established security protocols and provide insurance against fraud. Moreover, customers can visit physical branches to resolve issues, which many find reassuring.
However, I believe blockchain technology provides better security. Its decentralized nature prevents single-point failures, and all transactions are transparent and irreversible. The impact of cryptocurrency on international investments shows how businesses increasingly trust blockchain security.
In conclusion, while both systems have merits, blockchain technology appears to offer enhanced security features that better suit our digital future.
Key Vocabulary
- Decentralized (adj.) /diːˈsentrəlaɪzd/ – distributed or dispersed
- Immutable (adj.) /ɪˈmjuːtəbl/ – unchangeable
- Cryptographic (adj.) /ˌkrɪptəˈɡræfɪk/ – relating to coding systems
- Consensus mechanism (n.) /kənˈsensəs ˈmekənɪzəm/ – agreement protocol
- Retroactively (adv.) /ˌretrəʊˈæktɪvli/ – affecting past actions
Comparison between blockchain and traditional banking security systems
Practice Suggestion
Try writing your own essay about how blockchain technology affects other aspects of finance, such as international transfers or investment security. Share your essay in the comments for feedback and discussion.
