What do the banks want out of the Bitcoin blockchain?

[gatecoin]

Excerpt:
Globally, there seems to be a shift in hype from Bitcoin to blockchain. In July 2015, Coindesk reported that the Monetary Authority of Singapore funded a blockchain-based record-keeping system as part of a five-year $225 million investment plan aimed at financial technology. Then, in September of this year, nine major financial companies banded together to form R3, a blockchain technology research company. R3 has quickly grown to a consortium of 30 of the world's biggest banks that include Barclays, BBVA, Goldman Sachs, J.P. Morgan, Bank of America, HSBC, Morgan Stanley, BNP Paribas, and Wells Fargo among several others.

Although you cannot make a blockchain without a digital currency, you will be hard-pressed to find the term "Bitcoin" used anywhere at events like these. Perhaps the big banks and some Bitcoin startups can see that Bitcoin is the future but they don't want the negative stigma currently associated with Bitcoin in the public's eye. Jonathan Chester, CEO of Bitwage, wrote in a recent Forbes op-ed piece: "Halfway through the first day of the conference I started to use the word blockchain instead of Bitcoin. Instead of recoiling, prospects stayed to listen to us, eventually learning that the blockchain concept is the foundation of every cryptocurrency, and leaving us their business cards. When Bitcoin did come up, we had already developed some rapport and a lot of positive ideas had been conveyed, so it wasn't an immediate conversation killer."

So what do Banks really want out of this?

Full blog post: https://gatecoin.com/blog/2016/01/from-bitcoin-to-blockchain/

[BTCBinary]

Most Banks are interested in the wide applicability of the blockchain technologies to finance. They already realized that these technologies are the future and they don't want to get behind the race!

[franky1]

bitcoin currency is one thing.. but blockchain is the term for the technology.. geeks call it cryptocurrency but its actually blockchain currencies.. all altcoins are blockchain currencies

banks do not want the bitcoin currency or the litecoin, dogecoin, feathercoin, etc.. they want their own.. (geeks call altcoin) because the can have full control of all the coins, thus controling / removing speculation and hoarding by outsiders

the reasons banks want blockchains instead of SQL databases is:
1. not require as much security to safeguard the database, because copies are spread over several systems and verify eachother automatically
2. not need as much auditors as the way the "chain" works, audits itself
3. less IT employee's as the maintenance would be reduced
4. less worries of external and internal hacks editing balances, as balances are locked in
5. less need of internal investigation teams, fraud teams, etc because again, transactions cant be manipulated as easily
6. be transparent about inflation by having the money creation (block reward) hard coded and visible at all times to regulators

[PakistanHockeyfan]

They are definitely interested in taking away the anonymity portion of the currency, which I supoose is somewhat understandable. I do not know what their next move is in terms of moving forward with Bitcoin.

[elizabethqueen]

Excerpt:
Globally, there seems to be a shift in hype from Bitcoin to blockchain. In July 2015, Coindesk reported that the Monetary Authority of Singapore funded a blockchain-based record-keeping system as part of a five-year $225 million investment plan aimed at financial technology. Then, in September of this year, nine major financial companies banded together to form R3, a blockchain technology research company. R3 has quickly grown to a consortium of 30 of the world's biggest banks that include Barclays, BBVA, Goldman Sachs, J.P. Morgan, Bank of America, HSBC, Morgan Stanley, BNP Paribas, and Wells Fargo among several others.

Although you cannot make a blockchain without a digital currency, you will be hard-pressed to find the term "Bitcoin" used anywhere at events like these. Perhaps the big banks and some Bitcoin startups can see that Bitcoin is the future but they don't want the negative stigma currently associated with Bitcoin in the public's eye. Jonathan Chester, CEO of Bitwage, wrote in a recent Forbes op-ed piece: "Halfway through the first day of the conference I started to use the word blockchain instead of Bitcoin. Instead of recoiling, prospects stayed to listen to us, eventually learning that the blockchain concept is the foundation of every cryptocurrency, and leaving us their business cards. When Bitcoin did come up, we had already developed some rapport and a lot of positive ideas had been conveyed, so it wasn't an immediate conversation killer."

So what do Banks really want out of this?

Full blog post: https://gatecoin.com/blog/2016/01/from-bitcoin-to-blockchain/

banks really want to adopt blockchain technology,they know that technology will bring them to the future,nest global payment,more fast and secure,and they want bring bitcoin because its too risk for them.

[Ueshiba]

An aspect of the blockchain technology that is of great interest to the financial industry is smart contracts.

One example: Insurance clam adjudication with a large volume of transactions (i.e. prescription fulfillment). Boy-oh-boy wouldn't that be a disruptor of the current business model.