Why Banks Will Fail to Apply Blockchain Technology
Despite years of development, the finance industry has failed to showcase a working application of the blockchain technology. Experts believe that banks may have overlooked the most important concept of the technology: decentralization. The formation of the R3 consortium and the increasing interests from major multi-billion dollar banks have led blockchain to become an international phenomenon. Large financial institutions and government agencies rushed to implement the technology in various areas of their operations, specifically to optimize the settlement of financial transactions.....
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Blockchain technology continues to draw powerful admirers including Goldman Sachs, Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland, and UBS. World's most powerful banks have joined hands to work on the formulation of industry standards and protocols based on the blockchain technology for their mainstream applications in the financial markets. The partnership will be led by a startup R3 which is being led by Wall Street expert David Rutter. R3 describes itself as an innovation firm focused on building and empowering the next....
Prominent research organizations such as the World Economic Forum (WEF) have made ambitious predictions over the past year and outsold Blockchain technology to the general public. The WEC previously stated that 10 percent of the world’s GDP will be overseen by Blockchain technology which is currently being tested by leading banks and financial institutions worldwide. That is trillions of dollars managed by Blockchain technology. Overhyped. However, many argue that the Blockchain industry is exceedingly overhyped. So-called experts or analysts within the field of Blockchain fail to....
The key factor behind the failure of finance and insurance companies’ attempts to implement the Blockchain is their lack of understanding decentralization. The Blockchain technology is being promoted as the greatest remedy for any data-reliant industries such as finance, real estate and insurance. However, the technology is yet to be implemented efficiently. Multi-billion dollar corporations who are eager to work with emerging technologies and popular trends in their industries believe in the wonders of Blockchain, but they often lack the understanding of basics which results in failure.....
MasterCard international President Ann Cairns has called blockchain, the technology powering bitcoin, a very promising technology which MasterCard sees as a “good thing for the future.” Private banking corporations, investment banks, stock exchanges, and even central banks have taken deliberate, extensive measures to understand the innovation of blockchain technology in an effort to apply it in their own respective realms. Global card payments network MasterCard is among the companies investing in blockchain technology. Ann Cairns, president of international markets at for MasterCard, a....
Bitcoiners champion how blockchain technology could undermine the financial system and effectively destroy banks. Bitcoiners mention how banks are going the way of the buffalo and blockchain inspired technology – or simply Bitcoin – will revolutionize the way the world does, basically, everything. Bitcoin, they say, will allow individuals to become their own banks. But, what if the opposite is happening? Many people on the opposite side of the aisle believe that blockchain technology will cut overhead so much that the record profits big banks have made in recent years will look small.....