Bitcoin Forum

I have been reading how the concept of Ethereum could fuel the future technology needs such as smart contracts. But i came across an article that assessed how such technology could be used by banks but they will be having their internal private blockchain, and not attached to public ones.

Ethereum is essentially a massive research project that paved the way. Eventually, big organisations will be using Ethereum concept for their own needs by setting up private blockchains.

http://qz.com/730004/everything-you-need-to-know-about-the-ethereum-hard-fork/

I don't think technology has anything to do with eth because eth is just a brand name to buy and sell and to profit while technology
used can be used in other ways without having anything to do with eth.

If i am a bank, why should I use Ethereum?  I can design far more sophisticated technology than them :D.  The problem is that we are understimating the programmers and coders of this big company.  FYI, they already established their reputation in this field reason why their skills had been used by this big company.

The only thing that private blockchains will not have is the "decentralization". This is one single feature of bitcoin that is far better. Eth is just a alt-coin to me.

that's correct why use a system that you are not familiar with, if bank will ride to use block chain i guess they will create their own coin
as they can pay the programmers to assure that the business would not be ruin by people behind eth.

you can use ethereum to host private block chain. e.g. microsoft has that in their cloud offering.

and an ETH hardfork would mess up Microsoft's private block chain.

well all these years we have seen that banks dont like to make anyone rich, so why use Ether or X coin blockchain ?
they will pay their dev to make it happen, setting up their own pools and here they are,
it a hard part to pull a bank (officialy ) on a public blockchain, because there will be easy money & profit for other people, and banks like making profits just for their stash..
and last but not least they will have to support that X blockchain , mining power, price, searching for bugs, imagine the drama if a bank was on Ether then DAO drama..!  :D

so what we have heard this all before, the benefits of blockcahins are all done away with when you make them private and centralised

I wouldn't be so sure about the talent levels of bank vs crypto. some people here have been working on it for five or more years now. you can't magic that skill out of thin air and you can't dump a totally new type of software development on your existing staff and expect them to make a work of genius. way easier to poach from elsewhere and steer them the way you want them to go.

crypto's running before it can walk. I don't think any bank or large organisation is going to implement smart contracts any time soon. even when you put aside the tech challenges, you can't throw away existing legalities. a dumb blockchain is far more likely.

Well, digital technology is permanently evolving and it is perfectly valid that larger financial organizations are continuously looking for more advanced systems to improve their security measures and make their transactions more efficient and cheaper. Several banks are testing the blockchain, but also can test some features of ethereum or other cryptocurrencies, as well as develop their own protocols because they have the sufficient resources to do it.

why would it? if i run my own private chain it doesnt matter what happens in the public chain!

yes bank can use their own private block chain , as banks are having established infrastructure and resources to develop  new technologies , bank always wants an easiest and secured way  to have access their banking sites also  so that their customers will have easy access to banking on their accounts :)

I think banks will not care much about the name of the assets like bitcoin/ethereum blockchain. They will just develop their private blockchain and can add whatever feature they like to add on that blockchain. They will be using blockchain for better security as well as for better speed in transaction.

Ethereum is one of the nicest currency I am using. It has a big potential like bitcoin. But banks using ethereum is impossible. Probably banks will focus on putting up a sites wherein you can save your bitcoins in your wallet. Aside from that you can sell them your bitcoins in exchange for cash with a fee. You can also exchange your money to bitcoins with just one click. Everything is linked to your account. That way they are earning through surcharges and other fees. They will focus on bitcoins and deal with buy and sell including loans.
                                                                                   

This might look like a basic question and I'm sorry I have to ask, but it really is not clear to me:
What use do banks have from an own blockchain? They have their centralized servers, isn't that a better solution for them?

in my opinion that is a worthless article that is trying so hard to show that ethereum is a good coin and useful in real life. and mostly focuses on the hard fork as a good thing indirectly which really isn't

besides banks and a lot of other big financial groups have been working on their own blockchain based on bitcoin for a very long time, and it has nothing to do with eth and what it has brought to us.

maybe are they will use blockchain for better Security settings and increase the speed of the transaction and will develop blockchain their personal as well as adding features on their blockchain ,
I think the banks will not care about assets like bitcoin / blockchain or the other

in most use cases you are right. however there might be some which requires transparency you can easily achieve with blockchain tech.

We'll, they are searching for the possibilities that they can use bitcoin in the future time. Maybe some other time, Bitcoin will be released soon in popular Banks. And maybe they will also add a private blockchain once they starts using bitcoin. This time, bitcoin is still on demand, but what happens if bitcoin will stop producing ? Will bitcoin still be released at banks ? Will there be a new Cryptocurrency to be used ? ETH will be good btw.

I would think that the bank would not have to use the blockchain and have already produced their own technology to rival it by now. ::)

Ethereum is a container anyways so that is no surprise they don't want to use it.
It just makes it have more chances for it to fail.

My appreciation is very high on etherum. etherum has a large market share. as a newcomer, etherum has good prospects as bitcoin.
I think etherum will be one of the digital currency, equaling the amount of bitcoin.

exactly my thought as well. also a chain of banks could use private blockchain because of the transparency and security it gives.

Are there financial institutions using a private chain for real fintech work? Anyone in the know?

NEM is the backbone of a private offshoot for a few projects in the far East.

I think all this Ethereum bonkersdom has sealed the deal in any banking minds that they're never going to put their affairs in the hands of a bunch of squabbling autists.

You're harsh, but you have a point. No bank is going to trust something not trushworthy. Ethereum might be an interesting concept, but it will never work if stupid decisions are made all the time.

It's too late for Ethereum in my opinion. I suppose there are two sides to how a bank might view it.

On one side they're going to approve of the ability to mitigate disaster, on the other they're not going to like the uncertainty that precedent sets. What is one person's disaster is another person's boon.

The screamingly obvious answer is to throw away any notions of getting involved in something they don't have total control over. I don't think their shareholders or host governments are going to be sympathetic to their interests being destroyed by 'the community'.

From what I've been reading and in the news, most banks are still in the research or experimenting phase. Some other institutions like NASDAQ are already up.

http://www.coindesk.com/nasdaqs-blockchain-services-global-exchange/

Private blockchains are useless and sooner or later they will have to accept the fact that the real blockchain is the Bitcoin blockchain and the rest of blockchains are bullshit. If anything, only bitcoin's sidechains would have any relevancy.

I have the same feeling private blockchains are useless, but maybe if all the banks worldwide needs to maintain a public ledger between them then private blockchain might be the way to go. I mean this blockchain might be used only to settle transactions between the banks, not by anyone else. Though shared centralized database offers the same functionality and is more effective, so lets see if something like private blockchain between banks ever start to exist.

I dont know who come up with the idea the banks looking to use ethereum for their private blockchain, banks have enought resources to take all the necessary public code and fit it to their needs. And to depend on ethereum and some young independent kid behind this project would be a sure way for a disaster for the banks.

Ethereum, assuming it becomes successful, won't do so due to big banks/ institutions adopting it. What will cause people to use ethereum is if there are dApps on the Ethereum blockchain that gain a significant following/ userbase or dApps that provide a significant utility to its users.

I highly doubt any banks are seriously looking at Ethereum after this. It was bad enough after the security weaknesses in Solidity were found; now ETH is essentially a joke. Splitting into multiple blockchains over a bailout?! Please....

Private blockchains -- to be honest, I don't get it. I suppose a federated consensus could be useful, but it doesn't give you nearly the security that BTC's disinterested miners give you. All you need is 51% of stakeholders to collude in order to steal from the rest.

The other kind of private blockchains that are currently being looked at are essentially one-node networks; useless.

Actually, if any crypto is going to be used mainstream with banks, it will be XRP Ripple. They already have tons of banks on board and have actually send money transfers using the ripple protocol. Not sure what the future will be with ETH. I thought it was awesome before but now....a mess

Ethereum's an important step. It's proved something along those lines might be possible but i can't see eth as it is ever being used seriously now.

As the bitcoin developers often remind us all this is still an experiment. It's gonna teach people a great deal and it made some people rich.

The technology is brilliant and it's a surprise that banks haven't checked out blockchain technology long before this.

yeah the technology of most of the cryptocurrencies are really great, i think that bitcoin and ethereum will be better and better in the future

I don't know why you are saying "ethereum" has paved the way. when in fact banks and all those big organizations had their eyes on bitcoin from so long ago even before Vitalik was thinking about eth, and many giant financial institutions were studying bitcoin's blockchain to adopt it for their own and use it to send their transactions over a secure channel. 

Agree but I know, adaptation maybe is slow as the technology is new or about to ripe :) Since it came into reality, there are already improvements and issues being addresed and of course banks are very keen on this to protect their clients.Now, banks are starting to adopt it.

ethereum is interresting, for certain. but the evm / solidity combination seems not so brilliant. More security would obtain if founded on functional programming, with proofs, like in coq. probably at banks some educated people are knowng this and will wait for a different coin with more secure foundations.

I think Ripple is good example how private blockchains works, there is no mining or coin staking, the XRP can be created only by the 'superuser' whenever needed. Bank paradise, but banks can create their own ripple protocol, why pay to private company especialy when the costs become too high after a while.

i do not think that banks will need to study about the private block chain or to study any crypto currency like bitcoin or etherium or some one else, specially in preset position, because these currencies have yet not any bad effect of banks on on their business, may be in future they think about to develop their own block chain, but it can only be possible when the user of crypto currencies increase and most of the people use online wallet,