Blockchain was invented way back in 2008 by an individual or group known as Satoshi Nakamoto. Since it’s innovative inception, this forward-thinking form of technology has broken through the usual ways computers talk to each other, bringing with it the capacity to change the way many types of businesses operate.
Let us take a look below at what blockchain is and how it leads the way in terms of its clever coding and mass collaboration.
What is blockchain and why is it important in banking?
Blockchain in its most basic essence is a huge, worldwide global ledger, which can be accessed by everyone.
Why it’s so important to the banking and financial industry, is its ability to move and securely store information of value, such as:
- Other financial assets
It works mainly by establishing trust. Unlike the usual ways, money has traditionally been governed by powerful leaders, such as governments, banks, and technology companies, but by group collaboration and smart coding techniques.
‘Blockchain in its most basic essence is a huge, worldwide global ledger, which can be accessed by everyone.’
Let’s look below at three of the most important features of blockchain:
It is the very nature of these 3 major features of blockchain, which may cause irreversible changes in the way banks and financial services operate in the future.
Will blockchain change the future of banking as we know it?
Although blockchain technology is currently still in its early stages, the landscape of banking in the coming years may well be completely disrupted and shaken up due to this game-changing innovation.
- How will the banking ecosystem look like in approximately five to ten years from now?
- Will blockchain technology drive disruption in the banking industry?
- What are the main areas that will be affected?
Given these important ideas to consider, the banking industry is certainly ready for a large scale shakeup.
The system behind blockchains effectiveness could be the reason why all our major banks may have to look at totally rethinking how they operate.
Banking is an industry ripe for Blockchain-related disruption. Our reliance on what is a totally dated financial system that is largely dependent on paper makes it not only more expensive and inefficient but also makes the system an easy target for fraud and crime. The effectual way that blockchain works, based on its trust and transparency, is leading the way forward in how we will begin to see our banking and financial systems operating in the future.
‘Banking in the coming years may well be completely disrupted and shaken up due to this game-changing innovation.’
Let’s finish by exploring how the americanbanker.com views blockchain technology and how it is set to totally transform the banking and finance sector.
‘The unstoppable force of blockchain technology is barreling down on the immovable infrastructure of modern finance. We would like this collision to transform the old money machine into a prosperity platform for all.’
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.