Financial world put the stake on Blockchain technology. It’s not an assumption, it’s an obvious fact already confirmed by numerous examples.
Thus BBVA Research US has published a report considering blockchain as an innovative approach to financial services that has a great potential. The researchers clearly show that traditionally there is always an intermediary in money transactions.
We are not used to peer-to-peer transactions while blockchain can help to make them simple and reliable at the same time. The technology looks like a great database with information about every transaction all over the world.
If intermediary is not needed any more, double-spending is eradicated as well. The risk of human mistakes comes to naught. However researchers admit the fact that intentional creation of false transaction can defraud the system so absolute security is not guaranteed.
The report discusses advantages and difficulties (let’s not call them disadvantages) of applying blockchain to current financial system. But regardless of anything it sticks to the point that further development and improvement of blockchain can overcome all the obstacles.
The importance of bitcoin underlying technology can be proved by the fact that Visa Inc., the world’s largest electronic payments network, has started the work on using blockchain in digital payment processes in their office in Bengaluru, India. The company didn’t conceal its interest in blockchain. Visa has already announced the appointment of Min Wang, a former Google scientist, as a head of research team. Now the whole team of 400 engineers will strive to make transactions more efficient with a help of technology. In the future the team is planned to be increased to 1,000 specialists.
William Mougayar, a technology entrepreneur from the USA, compares blockchain with appearance of Internet 20 years ago calling it “the most disruptive technology in the financial sphere.”
According to Forbes, you’d better pay attention to bitcoin even if you are not interested in the currency itself. It’s blockchain that engrosses the minds all over the world. While bitcoin has few chances to struggle with such stable currencies as dollar, Euro or pound, blockchain is believed to be able to revolutionize the financial system. Speaking openly “anyone who fails to pay attention today risks being caught as flat-footed as those who failed to see the potential of the Internet.” The comparison with Internet is the most widespread as concerns blockchain.
Deutsche Bank makes a post with a title that speaks for itself – Blockchain – attack is probably the best form of defence. It actually repeats the already mentioned idea that blockchain is the most precious part of bitcoin.
It says: “Several financial institutions have already established what are known as innovation labs that deal exclusively with all the technology involved in the blockchain. However, stock exchanges, credit card firms, clearing houses and insurers are also increasingly focusing on the technology. This may be because established intermediaries want to get an idea of whether the blockchain is actually a threat to their existence or may ultimately even offer numerous opportunities to implement new proprietary technologies which will raise the digital profile of traditional transaction banking, boosting its efficiency and, above all, execution times.”
It’s still hard to predict results of such an overall interest in blockchain. But it’s safe to say that the technology has already gone beyond the limits of bitcoin.