Often a technology is alleged to be enormous but, because we over estimate how fast it will take off, we get cynical with the fact that nothing much is happening and so we start to feel it’s not going to happen. Everything goes quiet and then, a few years later, we suddenly go wow, look at this shiny new thing that’s changed the world.
One of the hallmarks of truly digital banking is the secure banking ecosystem. As a variety of banking and non-banking players collaborate and co-create to offer customers universal banking services, they would need a robust, secure mechanism to facilitate their interactions.
One of that mechanism is very likely, the Blockchain. There is a huge amount of interest in this technology, which has the potential to transform the way the industry works. Investments in Blockchain projects are already more than a billion $1.4 over the last year and the investment is expected to be greater than $2 billion in coming years, and there are number of banks that are already trying it quite earnestly.
Block Chain Unleashed
So, what exactly is Blockchain, and why are people so excited? Presently, people use a trusted middleman such as a bank to make a transaction. However, Blockchain allows suppliers and consumers to connect directly, removing the need for a third party.
Blockchain is a distributed database that maintains a continuously growing list of records, called blocks, secured from tampering and revision. By letting digital information to be distributed and not copied, Blockchain technology created the backbone of a new kind of internet.
Basics of Blockchain
Blockchain is a technology that was initially developed with cryptocurrency, the bitcoin is a distributed ledger that is operated by a peer-to-peer network of unaffiliated participants. It stores blocks of data that are identical across the network, which can’t be controlled by any single entity. Each block contains a timestamp and a link to a previous block. By design, Blockchains are integrally resistant to change of data. Once it is recorded, the data in a block cannot be changed.
Using cryptography to keep exchanges secure, Blockchain provides a distributed database, or “digital ledger”, of transactions that everyone on the network can see. This network is basically a chain of computers that must accept an exchange before it can be verified and logged.
The technology can work for almost every type of transaction involving value, including money, goods and property. Its potential uses are almost boundless: from collecting taxes to empowering migrants to send money to family in countries where banking is challenging. Blockchain could also help to reduce fraud because every transaction would be recorded and distributed on a public ledger for anyone to see.
From conceptualizing to creating and implementing
Foremost financial institutions already have put in efforts to explore the potential opportunities that Blockchain embraces for their businesses. Now, at the start of the Blockchain revolution, the challenge that lies ahead for financial services and finance-tech firms may not be so much shaping solutions as it is identifying the problems that will require new and innovative thinking.
The most successful firms will be those that take advantage of these opportunities to harness finance-tech firms and the Blockchains prime time. Would you like to learn more about our portfolio of services? If so please get in touch with us, we would be happy to direct you in detail. Contact us at [email protected] to discuss your requirements or visit our site at www.royalcyber.com for more information.