Will blockchain in banks explode this year?

Will financial services see increased blockchain use?

The number of news on blockchain and cryptocurrencies seems to be growing by the hour but for some reason, the number of coins and projects are not yet mainstream. Many ideas have over the years been developed and discussed, but none have delivered large game-changing results.

Financial services are an ideal target for blockchain projects because today’s banking systems are still based on rather primitive systems that are slow, costly to keep and operate. It is no wonder we are charged high service fees. The current systems banks utilize have many layers of redundant data, as everyone involved with a transaction has to have their own copy of the transaction details. And then there’s the work of ensuring there is a reliable third party to clear the transactions.

Blockchain technology holds out the promise of fixing these problems because each transaction will be recorded in just 1 block on the distributed chain.

Because the verifiers of blockchain transactions are not the traditional clearing houses that banks use and trust today, it may take some time to build up trust in blockchain technology. Trust by the banks in a new technology will indeed take time, and additional time is needed for that trust to trickle down to consumers, so for 2018, we don’t think this is happening.

Written by Carl Fourtoy

Carl is a software developer with hands-on experience in data analysis, educational technology, artificial intelligence and blockchain. His key skills include knowledge of Java, JSON & XML Parsing. He's also a junk food lover so, you’ll either find him at his desk busy analyzing and churning out data problems or at a fast food chain trying out the latest fries.


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