Blockchain technology and financial security has become an increasingly common topic in IELTS Writing Task 2 essays, reflecting its growing importance in our digital economy. Based on analysis of past IELTS exams, questions about financial technology and digital security have appeared approximately 2-3 times per year since 2019. Let’s examine a relevant question that has appeared in recent tests.
Question Analysis
Some people believe that blockchain technology has made financial transactions more secure, while others argue that traditional banking systems are still safer. Discuss both views and give your own opinion.
This is a discussion + opinion essay that requires:
- Analysis of both perspectives on blockchain vs traditional banking security
- A clear position with supporting arguments
- Relevant examples and evidence
- A well-structured response of at least 250 words
Comparison of blockchain technology and traditional banking security systems
Sample Essay 1 (Band 8.5)
The security of financial transactions has become a critical concern in our increasingly digital world, with blockchain technology emerging as a potential solution. While some advocate for this innovative approach, others maintain that conventional banking methods remain more reliable. This essay will examine both perspectives before presenting my own position.
Those who support blockchain technology argue that its decentralized nature and cryptographic security make it virtually impossible to hack or manipulate. The immutable ledger system ensures that all transactions are permanently recorded and cannot be altered retrospectively. Furthermore, the elimination of intermediaries reduces both costs and the potential points of failure in the system. For instance, major cryptocurrencies have operated for over a decade without any successful attacks on their core protocols.
Conversely, proponents of traditional banking systems emphasize their long-established security measures and regulatory oversight. Banks employ sophisticated encryption methods, multi-factor authentication, and have extensive fraud detection systems in place. Additionally, traditional accounts typically offer insurance protection and the ability to reverse fraudulent transactions, features that are often absent in blockchain-based systems. The recent history of cryptocurrency exchange hacks and losses demonstrates that the broader blockchain ecosystem is not immune to security breaches.
In my opinion, while blockchain technology offers promising security features, traditional banking systems currently provide a more comprehensive and proven security framework for the average user. The combination of technological safeguards, regulatory protection, and established risk management procedures creates a more robust security environment. However, I believe the future lies in a hybrid approach that incorporates the best elements of both systems.
Sample Essay 2 (Band 6.5)
Nowadays, there is a debate about whether blockchain technology or traditional banking is more secure for financial transactions. I will discuss both sides and give my opinion.
On one hand, blockchain technology has some advantages for security. First, it uses special computer codes to protect money transfers. Second, all transactions are recorded and cannot be changed easily. For example, Bitcoin has been working for many years without big problems. Also, blockchain doesn’t need banks to manage money, which some people think is safer.
However, traditional banks also have good security. They use strong password systems and have special teams to stop fraud. If something goes wrong, banks can help customers get their money back. Many people trust banks because they have been using them for a long time. Some cryptocurrency exchanges have been hacked and people lost money, which shows blockchain isn’t perfect.
In my opinion, traditional banks are still safer than blockchain right now. This is because they have better customer protection and more experience with security. Also, governments check banks to make sure they are safe. Maybe in the future, blockchain will become safer, but for now, I think traditional banking is better for most people.
Analysis of Band Scores
Band 8.5 Essay Analysis:
- Sophisticated vocabulary and complex structures
- Clear organization with cohesive devices
- Well-developed arguments with specific examples
- Balanced discussion with clear personal position
- Academic tone throughout
Band 6.5 Essay Analysis:
- Simple but clear vocabulary
- Basic paragraph structure
- Some development of ideas
- Limited use of complex sentences
- Informal tone at times
Key Vocabulary
- immutable (adj) /ɪˈmjuːtəbl/ – unchangeable
- cryptographic (adj) /ˌkrɪptəˈɡræfɪk/ – relating to secure communication
- decentralized (adj) /diːˈsentrəlaɪzd/ – distributed control
- intermediaries (n) /ˌɪntəˈmiːdiəri/ – middlemen
- retrospectively (adv) /ˌretrəˈspektɪvli/ – looking back at past events
- sophisticated (adj) /səˈfɪstɪkeɪtɪd/ – advanced
- regulatory oversight (n) /ˌregjʊˈleɪtəri ˈəʊvəsaɪt/ – official supervision
- robust (adj) /rəˈbʌst/ – strong and effective
For practice, try writing your own essay addressing how blockchain might transform international money transfers or its potential impact on financial inclusion in developing countries. Share your essays in the comments for feedback and discussion.
