Workers on Wall Street: blockchain has important implications for the financial sector Some see it as the biggest change in technology since the advent of the internet. Others say claims for what blockchain can do are overblown. But those among the former group are now asking how the blockchain technology that underpins so-called cryptocurrencies, which include bitcoin , will affect jobs, particularly in the financial sector. Banks, clearing houses and exchanges are already eyeing the potential savings. Blockchain technology provides a way to continuously maintain and verify digital records in “blocks” that can be shared between various parties. Also called “distributed ledger technology”, it means ledgers can be updated instantly in any number of locations. The information can never be erased. “In basic terms, the blockchain is a public record of transactions,” says Amy Webb, founder of the Future Today Institute, a US-based forecasting and strategy firm. “This may seem less secure than a private record but as that transaction is made, the transaction itself becomes part of the ledger and all the data around that is encrypted.” Blockchain has the potential to handle a wide range of transactions managed by humans. “If you’re buying a house, there’s a mountain of paperwork and authentication and it requires a person to do it,” says Ms Webb. Blockchain makes it easier and more secure, and reduces the need for real estate brokers. Most applications are in the experimental stages, says Leda Glyptis, a director at Sapient Global Markets, a US-based capital and commodities markets technology consultancy: “It has been able to cope with everything we’ve thrown at it, but we haven’t thrown that much at it outside the laboratory.” However, banks, insurers and other financial institutions are interested in blockchain as a way to increase security and efficiency and to lower […]
