The banking sector, along with all of the potential which blockchain provides development, iteration and change have been gradual in its uptake of the new technology. For that reason, there is no questioning whether the technology will revolutionize or disrupt the banking sector. Some leaders feel it arriving. A few are ready. The majority are not. However, how and why is blockchain technology going to transform banking over the next few years?
How Does Blockchain Technology Work? How Can We Apply it to Banking?
The process of blockchain is really easy. For example, somebody requests to make transactions – normally with the help of cryptocurrency. When they do, computers jump to work to process the transaction. After the nodes are done, blockchain confirms the this up and coming tech.
Blockchain technology is far less costly
When banks spend less currency, they will. As with most businesses, the ROI of the banking sector is a huge concern. Particularly in the past days. One writer emphasizes that three various forces are pushing on banks, increasing their costs and reducing their efficiency.
Transactions are substantially faster
Visualize that you’re shipping oil from Malaysia to Singapore. How long do you think the oil would take to transport from one point to another point? The answer is a single day. Unluckily, the story is far more different when you think how long the paperwork would take. The answer to your question is approximately a week. You see: you can ship within the day, but it will take you a week to complete all the paperwork.
That “what if” circumstance illustrates why trade finance is a fact of banking which blockchain is prepared to revolutionize. With those sorts of wait periods, it requires disruption.
Not just does blockchain has the power to save banks billions of dollars. However, it can also speed up the transaction process drastically locally and overseas. For such reasons, 40 huge banks around the globe are investing big assets into the blockchain technology. Bank of America is an option to blockchain patents. Citibank, JPMorgan Chase, Goldman Sachs and Bank of New York Mellon all constructed their cryptocurrency. Such banks are investing for a very good reason. Blockchain technology does not only deliver savings. It provides fast transactions, meaning more satisfied clients, more effective processes and lower overhead.
XinFin, a Singaporean-based cryptocurrency platform is now hitting the market by storm. XinFin (XDCE) strives to offer solutions customized for worldwide trade and finance. It obtained massive interest at Consensus 2018 event in New York this year. The XinFin platform has four different solutions, including Remittance, E-Wallets, Business Efficiency solutions and TradeFinex, as well as Private Sub-networks.
It took more than seven decades for the telephone to attract consumers, while it took smartphone 10 years. How long until blockchain captures the banking sector? Well, our guess is as better as anyone. However, we tend to see banks start making their cryptocurrencies and utilizing blockchain for transactions in the next 10 years.
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