News People Love Talking About It More Than Using It

People Love Talking About It More Than Using It

-

- Advertisment -

Over three years have passed with billions of US dollars invested in the technology. Yet, no companies have demonstrated the commercial success of the Blockchain and its applicability to the general consumer base.

In 2014, Blockchain technology was introduced as the technology which underpins Bitcoin. While it is true that the Blockchain is one of the main technologies that support the Bitcoin network, its primary role is to operate a ledger of transactions. Simply put, Blockchain technology’s purpose within Bitcoin is to operate as a database for payments.

The idea or notion of banks and financial institutions that replicating the structure of the Blockchain and creating a new system around it to compete with Bitcoin is flawed. Mainly because of the lack of other important components in Bitcoin that synergize with Blockchain technology to create a $20 bln financial network.

Since late 2016, banks, financial institutions and corporations have announced successful testing of Blockchain technology claiming to have demonstrated the potential of Blockchain within various industries. Yet, no companies have implemented Blockchain technology on a commercially successful scale. In other words, the so-called “Blockchain technology” currently being developed by banks and financial institutions have no real active users.

Some consortia such as R3CEV were honest to its investors and clients to admit that it is no longer a Blockchain company. Instead, the company is focusing on the development of a Blockchain-inspired technology, which is more applicable to existing technologies in the finance industry.

The truth is, the IT infrastructure of the finance industry is significantly outdated to the point in which almost any modern technology would dramatically improve the performance and operations of financial service providers.

What is Actual Blockchain?

Public and open source Blockchain platforms exist such as Ethereum and Bitcoin which developers can build applications on top of. While the Bitcoin Blockchain does not have an efficient and favorable development framework for app developers, it provides an unprecedented level of security.

On the contrary, the flexibility-focused Ethereum platform provides developers a viable development framework with various functionalities such as smart contracts to develop innovative decentralized applications.

Private Blockchain networks and platforms have failed to show any sort of potential in the past two years for two major reasons: security and regulatory conflict. Banks can’t implement public or open sourced Blockchains that are decentralized in nature due to regulations on money transmission. Also, banks can’t implement a private Blockchain network because of severe security issues that follow. For instance, with a private Blockchain network, immutability isn’t guaranteed and the Blockchain is no longer unalterable.

An alterable and vulnerable Blockchain network poses no difference to a conventional database.

Currently, banks and financial service providers are under pressure to demonstrate the potential of Blockchain. Such urgency could explain their interest in public Blockchains such as Ethereum and the creation of the Enterprise Ethereum Alliance.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Data-Intensive Sector Has A Lot More To Explore With Blockchain Technology

Blockchain technology in Data-Intensive sectors is gaining huge recognition in the market. It is used in building...

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which has grabbed the attention of countless people from different countries....

The First Cryptocurrency Bank License Is Now Granted

This is a historic development. A milestone in Bitcoin's path to broad acceptance and recognition. The State...

Yield Farming Program “Volcano” Kicks off Dutch Auction for Cryptokitties KittieFIGHT Game

In the fall of 2017, along with the rallying of Bitcoin and other digital assets, Cryptokitties dominated...
- Advertisement -

Ministry of Foreign Affairs of Denmark may use Blockchain to tackle corruption

We have already moved to the stage in our lives where technology plays an important role in...

What Lessons Can The World Learn From Venezuela’s Newfound Love For Crypto?

It is often the case that great changes are forced out of necessity, rather than a willingness...

Must read

Data-Intensive Sector Has A Lot More To Explore With Blockchain Technology

Blockchain technology in Data-Intensive sectors is gaining...

4 Tips on How To Succeed on Bitcoin Trading

Bitcoin is a type of cryptocurrency which...
- Advertisement -

Read Next
Recommended to you