Banks are adopting the Blockchain technology to improve both internal and external operations, eliminate middlemen, improve security , and save costs.
Since the invention of Blockchain, the FinTech environment has been under constant evolution. Despite criticisms of Bitcoin which is the most widely known application of Blockchain, the amount of interest shown in the technology has become enormous. Several banks and financial institutions have shown a lot of interest in blockchains.
What exactly can these financial bodies achieve using the blockchain? Blockchain can be a backbone
David Prince , Blockchain consultant, says; “The Blockchain can perform many standard financial functions as it already does so well with BitcoinCT r: 8 . Banks are simply adapting these features with custom software to perform the same outcomes with fiat currencies. Basically the Blockchain becomes the backbone of a software program much the same as DOS with Windows .” Blockchain eliminates trust issues
Christopher Franko , Blockchain researcher at Ribbit.me, responds by saying: “Blockchain technology allows banks to truly work together for the first time in history. Traditionally banks have always had a tough time with working together because banks in general have a hard time trusting other banks (kind of ironic if you ask me since they demand trust from customers). Blockchains are implicitly trustless due to the immutable nature of a blockchains records. The reason is, the special identifier of future blocks is dependent on past blocks, so if any data from the past is tampered with it alters all the identifiers of every block thereafter so it then becomes trivial to know if someone isn’t telling the truth. But that is just the obvious application, and about self fulfilling contracts, with smart contracts we can upgrade all sorts of legacy systems.” Blockchain enhances speed and connectivity
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