Bitcoin Forum

Banks are 'very excited' about what one of the world's best funded Bitcoin startups is doing

http://uk.businessinsider.com/30-million-bitcoin-startup-bitpays-backup-plan-sell-tech-to-the-banks-2015-6?IR=T

I wonder if they would use the actual amount of btc to transfer customer funds or use a colored coin system?

tldr: banks are very excited that bitpay is working on a solution to apply "blockchain technology" to the way they do business.

In other words, this isn't related to Bitcoin but rather to blockchain technology. This shouldn't even be in this section.

They are talking about applying blockchain technology to the mainstream currencies, not using Bitcoin.

Lobster is very excited to be your dinner guest tonight, this bath is so warm and relaxing! Lobster is honored.

http://www.atwoodlobster.com/img/dummies/cookingLobster_LARGE.jpg

While it's all well and good banks being interested in integrating the blockchain technology into their existing currency system this doesn't help the Bitcoin community, if anything it goes against it as it will just be strengthening the current system.

I think this is rather bad for bitcoins. Blockchain is one of the most crucial technology of bitcoin. If banks employ the blockchain tech for their own transfers, they will probably not end up using bitcoin but will rather make a digital blockchain without the need for bitcoin which could be supported by something else just like account transfers. And once they bring this technology to the mainstream public business as well , they will just use something like mobile wallets to transfer money and the only advantage of bitcoin then would be the almost 0 fees and anonymity.

I don't think that as a part of Bitcoin Community we need a support from the banking system we are enjoying the success of holding bitcoins. No doubt many of them believe that Bitcoin is dead but its all about spreading the rumors and it would never affect the Bitcoin community who have blind trust on the Bitcoins.

And how are they going to use blockchain technology without a cryptocurrency attached to them, exactly? will it be PoS with fiat and closed source and centralized? that isn't a blockchain, that's a regular electronic ledger.

I was just going to post this.  There is no blockchain without bitcoin. 

I think it is interesting that banks want to use the technology, but at the same time are opposing bitcoins in general.  They want to have their cake and eat it too.  I am not a fan of banks, in fact they are the great satan of our day.  It is sad for me to see them embracing the blockchain technology.

Is this a good thing or a bad thing? Thinking long enough, you can see this from two perspectives. Are the banks our friends or what Bitcoin is trying to fight?

It would be quite ironic if the banks were the ones to increase the Bitcoin price many times over.

Banks using Bitcoin for inter-bank settlements was never an option.


Bringing such technology 'to the mainstream' wouldn't make any difference and wouldn't make much sense, as banks already can use their own software as they see fit. The only issue for the banks are settling inter-bank balances and the 'blockchain-like' tech will be nothing more than improved ledger.

In the best scenario, if all/most of the banks will adopt such tech, you could possibly expect faster/nearly instant international transactions, with slightly decreased fees (don't count on free tx). And I hope that happens. But I don't see how would that affect major advantages of Bitcoin.


They won't. This will unlikely have any effect on the price.

I don't like it when banks say they are "very excited". History shows us that what's good for banks rarely translates into anything good for the average guy like you and me.

I think they don't care about bitcoin,they like the blockchain technology,but they don't want to use bitcoin

dare I say it. Blockchain interest has been rising faster than Bitcoin

wow that's good news
because before banks don't want bitcoin
and now i hope many banks would like bitcoin

dare I say it. YOU GET WHAT YOU PAY FOR!

Banks and countries are perfectly fine to create their own Alt as it will ultimately be an effort in futility because Bitcoin will always remain ahead because:

1) Universal acceptance worldwide because its a sovereign currency that transcends legal jurisdictions
2) Maintain privacy without the risks of state and government corruption (within the blockchain)
3) Largest international user base with better network effect
4) An open source protocol cannot be regulated or sued like a corporate coin/bank coin can
5) Most of the worldwide economy exists in the grey and black markets and bitcoin is better suited to handle those markets
6) Isn't this a conversation we should have been having 2 years ago before many large adopters like NYSE heavily invested in Bitcoin companies? The establishment is already adopting bitcoin.

banks are 'very excited' about copying bitcoin's blockchain infrastructure .. not about Bitcoin itself

They can copy the code, they can replicate the hardware, but they will never replicate bitcoins infrastructure and key advantages. They may create other advantages over bitcoin as well... but fear not, bitcoin will always remain the more private choice and the more efficient choice because bitcoin as a protocol doesn't need permission to innovate or exist.

i wish this is a good news, are banks going to addopted bitcoin or its system ? or create their own ? i prefer ther is no invertion from bank or goverment

IT makes me wonder if first private banks will begin adopting the technology when will governments will begin I'm sure they could save way more money then banks when it comes to records and budget.

the big banks could develop their own pos blockchain for internal use.  it is probably better than what they use now.  they can use bitpay as entry to learn the tech and people.

It acctually has nothing to do, wiith them trying to create a competing system for Bitcoin as a currency.

They do internal transactions {offline} in their banking software... Like Xapo does, and then later they have to do the acctual {online} transfer between other banks.

They need "Blockchain" type technology to do this in real time, between banks, to reduce delays with clearances.

Bitcoin will still function without this, it only means banks will do external clearances quicker.  ::)

they will end use bitcoin for their blockchain as well, in a sorf of sidechaing, integrated with the original blockchain, they will not just raise another fork of it, in the hope that it can surpass the original one, will not happen, and they know it

They're very excited about building their own version for control. Or perhaps, Bitpay may be looking to be acquired or bought out.

I didn't think about it, but getting bought out would be very nice for bitpay.  Interesting angle!

Is it even anonymous since you still leave behind a bitcoin address

Well yes I would say thats a deep level of anonymity. If I was to send some bitcoins to your address there would almost be no way for you to know my name and email addresses or other details.
All you will get it my bitcoin address. Sometimes people require that anonymity for a lot of things which won't be the case in case of the banks.

Of course they are very excited: BitPay needs banking partners to turn all that Bitcoin from companies that immediately convert them, and this is a new business opportunity for banks to profit.

I hope everyone using BitPay switches to 100% Bitcoin, or at least the vast majority of funds to Bitcoin only (the only exceptions being funds in fiat to pay whatever they cannot pay in Bitcoin, yet).

Would banks make their own blockchains if that's the case? Who would pay for the mining consumption and the miners to keep the network stable?

This is the saddest thing about it in my opinion. I think most companies or banks aren't that excited about bitcoin or using it directly but they're just interested in the blockchain tech behind it which they will just utilise themselves to save themselves money. Good news for banks but not really us sadly.

The cost of mining in Bitcoin has been artificially inflated from a combination of proof of work, halving and the reward for mining itself.  Adjust some of these to remove the hash rate arms race to make financial gain, and mining to secure the blockchain is inexpensive.

If they create there own centralized blockchain its really just a updated ledger. 

Although it is nice to hear that Bitpay is being used by 60,000 different merchants, the sad thing is that nowadays only a small number of people use Bitcoin to do their shopping. According to Stephen Pair, only the early adopters are using Bitcoin to do shopping on these sites. The newer Bitcoiners are not using their coins for shopping. They are treating Bitcoins more like an investment asset. If things continue like this, then the merchants will lose their interest in Bitcoins and they will shelve BTC as one of the payment options.

Yes. But banks need to attach a coin to the blockchain, most likely bitcoin.

why wont banks be excited for anything ?
banks just find a medium for them to be a source of income . in order to earn some money they can do anything.
and since bitcoin is growing day by day , it can be a perfect target for the banks to acquire bitcoins and mange a transaction via bank so that they have some commission in it too.

they will look at the news about IBM, they want to create a centralized version of bitcoin, with a centralized ledger https://bitcointalk.org/index.php?topic=1095347.msg11672985#msg11672985

it will change nothing in comparison with their current system, besides more transparency on the ledger maybe...

Yes, They have the financial backing to pay people to create their own "Blockchain" type technology. They can even use the Blockchain, but it would be a risky move. They need something that they have full control over and they want to have it fully centralized.

A big banks, have many branches with loads of computers. They can install Asic miners in all of these branches to keep it decentralized within the group. {The ledger is distributed  and it's still internal and therefore provides for increased security}

My guess... They will not use the Bitcoin Blockchain.

No need! Coins attached to blockchain is for the aim of incentivise the miners to secure the blockchain. Banks has being making a lot of money and could save a lot of cost from applying blockchain technology.

IMO banks wouldn't adopt bitcoin directly and will compete with it. Coz bitcoin is independent decentralized system without the third parties.

The interesting thing is, that banks don't trust each other. A decentralized prediction market is a big opportunity for banks to adopt bitcoins.

A centralized ledger totally defeats the point of having a blockchain. Having a classic master ledger that is issues and controlled by the private entity you own is way more cheaper and does basically the same as having a centralized version of a blockchain. These guys are just fucking clueless. Everyone not just joining the Bitcoin blockchain is committing a big mistake and history will show us why.

A 'centralised' ledger within the different banks will secure the trust between global transactions. It does have a benefit for the banks, they can make cross-bank and international payments more controled and transparant, reduce the overhead costs and get bigger bonusses for the bankers!

But it will be a futile attempt to overcome the economic revolution that has started, the banks will topple, twitch their wretched leggs and die slowly, the picture of the lobsters was a nice one :)