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Blockchain technology is becoming increasingly important, but that doesn’t make it easy to use or understand. And now one company is trying to change that.
Ripple, a blockchain cross-border transfer and currency exchange firm, has partnered with fintech firm Expertus to begin a blockchain pilot program, according to Finextra .
Blockchain technology, which powers Bitcoin and other cryptocurrencies, depends on a distributed ledger that allows stakeholders to verify transactions without an intermediary.
This pilot program will give banks a simple and intuitive way to test blockchain technology. Banks can integrate the platform, which uses Expertus’ Payment Platform and Ripple’s technology, into their existing infrastructure. The banks would then benefit from "real-time payment execution, complete transparency into fees, and lower costs," according to Finance Magnates .
This could attract banks because it directly addresses major pain points tied to blockchain tech. This technology has enormous potential, as it could drastically increase efficiency and security in the payments ecosystem. A recent Coin Desk report indicated that banks that use Ripple’s services could save up to 42% compared to other choices.
But banks’ dependence on traditional systems makes them hesitant to change. These institutions will often look into blockchain tech but hesitate to implement it. This new pilot program should help banks overcome that hesitation.Blockchain technology could cut costs by up to $20 billion annually by 2022, according to Santander .That’s because blockchain, which operates as a distributed ledger, has the ability to allow multiple parties to transfer and store sensitive information in a space that’s secure, permanent, anonymous, and easily accessible. That could simplify paper-heavy, expensive, or logistically complicated financial systems, like remittances and cross-border transfer, shareholder management and ownership exchange, and securities trading, […]
