Despite some troubles with Bitcoin, this does not stop blockchain technology from being noticed in the financial industry. The latest report released by the World Economic Forum predicts that blockchain technology will occupy the core position of the global financial system.
It can be said that the report released last Friday was the largest support since the birth of blockchain technology. Giancarlo Bruno, head of the financial services industry at the World Economic Forum, said in a statement, “Blockchain technology is no longer the edge of the financial industry, but will become the core of the industry.â€
The characteristics of the blockchain make it hard to ignore. Instead, it provides a platform for building other concepts and technologies, especially the global financial system. Recently, CoinTelegraph had a dialogue with the experts on the impact and implementation of the technology in the financial industry. Lei Fengnet (searching for "Lei Feng Net" public concern) also commented on the viewpoints:
Don't need extra preparation?With regard to the development of blockchain technology, Simon Dixon, CEO of BnkToTheFuture, a Bitcoin equity crowdfunding website, pointed out the importance of blockchain and stated that although it has become Bitcoin's underlying technology, it still has its shortcomings. He said:
"The blockchain is an open source technology behind bitcoin. Nowadays, the world has more than 1,000 blockchains. But why isn't there any one that can be promoted on a large scale or is it safe? This is because of the blockchain's The value is far less than the value of the world's largest distributed supercomputer. This supercomputer can help Bitcoin and miners get the network effect."
Simon Dixon further explained that although anyone can copy technology through any open source code, it is rarely able to create products and platforms that are more secure than bitcoin transactions because relatively easy to build based on Bitcoin, Many people cannot break away from Bitcoin.
"Why do you have to recreate the Internet when everyone starts using it? You may have a better feature, but the motivation for everyone to use it comes from the real value of the Internet. It's like Bitcoin is really valuable. The computing power behind it."
However, this 130-page report has undergone a year of research. The interviewees included executives of prominent financial institutions such as JP Morgan, Visa, MasterCard, and BlackRock, and did not mention Bitcoin throughout. It can be seen that the banking industry currently treats Bitcoin. Attitude. Although blockchain is the underlying technology of Bitcoin, banks generally express the desire to use distributed ledgers without using existing virtual currencies. Instead, these books will be run by a group of organizations that wish to maintain a common record.
This is because the existing virtual currency has always faced security issues. For example, Bitfinex, one of the world’s largest Bitcoin exchanges, lost 60 million U.S. dollars worth of bitcoins due to hacking attacks. These losses can only be shared by customers. The customer suffered a loss of up to 30% because of this incident.
The World Economic Forum said in the report that the industry still needs time to really solve the problem.
Bitcoin is already a global phenomenon. How about that?Kumar Gaurav, co-founder and CEO of the point-to-point transaction remittance platform, Cashaa, stated that the future will be a systematic process that will enable Bitcoin and blockchain to achieve the expected breakthrough in the process of becoming mainstream.
"Bitcoin is a brand new product with many functions. No other product can compare with it. It is cheap, instant, no more than an architecture, and does not require physical means to conduct cross-border recovery. Obviously, these characteristics are also brought to the authorities." Many problems and challenges have come up, but will there be a situation where such high-quality products will be banned from private use by global government authorities?
Gaurav predicts that Bitcoin will influence people’s lives more and more, allowing regulators to accept them and allow them to participate. It's like sharing the economy: Uber and Airbnb eventually stabilized.
Although blockchain technology has been a shining star in the field of financial technology in recent years, it has built a set of technologies that do not depend on any specific rules, focusing on cryptography, shared-net-sharing books, and distributed consensus mechanisms. Distributed ledger systems operated by tripartite central agencies. However, bank executives initially did not want to accept Bitcoin because the technology was once used for drug trafficking and criminal activities.
"Anyway, Bitcoin is already a global phenomenon. Any strict supervision will only push Bitcoin to develop a wide range of underground applications. This kind of consequence is obviously not good for the government." Therefore, there should be a suitable Everyone's balance adjustment.
Now, many banks have begun to concentrate on various R&D and layouts. The report estimates that about 80% of banks worldwide will start distributed ledger projects next year. The large central bank is also studying how blockchain technology can change the way of remittance on a global scale.
However, the report also pointed out that in addition to technical issues, the financial industry must cooperate with the government to create a set of transaction monitoring standards and regulations. So, if Bitcoin is already a global phenomenon, then regulation is even more. It can only be said that advances in technology and changes in the industry will drive institutional changes and advance with the times, but a mutual warning process is indispensable.
Immutable and Unreliable Wealth Transfer“The Bank of Santander report shows that by 2022, banks can use blockchain technology to save about 2 billion U.S. dollars. Although it is still uncertain whether these saved costs will be returned to customers, the degree of savings does give The majority of banks embrace the blockchain technology with incredible currency incentives,†said Christopher Franko, chairman of Borderless Charity and founder of Borderless.Tech, a smart contract decentralized management platform. The benefits of blockchain to the global financial industry include eliminating Immutable and unreliable wealth transfers are important reasons for driving banks to use blockchain technology rather than traditional database architectures.
"In addition to fault tolerance, this can be necessary for companies that require 100% accuracy. As we have just said, big banks do not trust each other."