Banks' own Blockchain?

[zircon]

http://recode.net/2015/09/15/nine-of-the-worlds-biggest-banks-form-blockchain-partnership/

From what I read they are considering Bitcoin but also Ethereum.

Thoughts on all of this?

From my brief read on Ethereum it is a public blockchain, you can mine it etc just like Bitcoin.

Proof of work could possibly lead to more decentralisation (ASIC and FPGA not possible/feasible?)

[stuff0577]

Not exactly bitcoin but the blockchain technology.   

[turvarya]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

[TransaDox]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

The blockchain technology would be very useful for the shadow banking industry which is comprised of a large number of separate institutions that need to work together flawlessly to rip everyone off. Imagine if the libor rate or gold spot fix was obtained by consensus on a block chain instead of all the heads of the different banks meeting twice a day to fix a price. It would automate the fraudulent collusion.

[Snail2]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

Blockchain technology could be useful for banks. I guess that would be only a distributed transaction processing system what would make transaction processing more resilient, faster and cheaper. But if they release a coin as well, they can use that as an internal or intra-bank currency with some pre-arranged exchange rates to local currencies so they can save time and money as they can use their own common currency when doing business between each other, and with the automated transaction of Ethereum they can automate the whole procedure, so no human intervention needed.

[vm_mpn]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

Blockchain technology could be useful for banks. I guess that would be only a distributed transaction processing system what would make transaction processing more resilient, faster and cheaper. But if they release a coin as well, they can use that as an internal or intra-bank currency with some pre-arranged exchange rates to local currencies so they can save time and money as they can use their own common currency when doing business between each other, and with the automated transaction of Ethereum they can automate the whole procedure, so no human intervention needed.

Yes, there is CoinDesk article on the subject: http://www.coindesk.com/global-investment-banks-back-blockchain-initiative/

They may just create interbanking blockchain accepted and supported by all the financial institutions (governments approved). Lol. At least they are finally embracing blockchain tech.

[S4VV4S]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

Blockchain technology could be useful for banks. I guess that would be only a distributed transaction processing system what would make transaction processing more resilient, faster and cheaper. But if they release a coin as well, they can use that as an internal or intra-bank currency with some pre-arranged exchange rates to local currencies so they can save time and money as they can use their own common currency when doing business between each other, and with the automated transaction of Ethereum they can automate the whole procedure, so no human intervention needed.

^^^This.
Chances are that they will probably create their own coin/token too.

[zircon]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

[zircon]

If they use the Bitcoin Blockchain, then at any given moment there is a certain amount of "value" attached.

Therefor the value per share (Bitcoin token) should go up. And therefor the mining effort should increase as there is more "reward".

[S4VV4S]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

No, it wont be public nor will it be mined by the public.
It will save them money and time to confirm money transfers from bank A to bank B.
They will still charge you the same and it will probably take as long for you to "transfer" the money because it makes them more money.

[3888]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

No, it wont be public nor will it be mined by the public.
It will save them money and time to confirm money transfers from bank A to bank B.
They will still charge you the same and it will probably take as long for you to "transfer" the money because it makes them more money.

Have to agree, there will most definitely be benefits and cost savings for the banks should they start doing their transactions on a blockchain type technology but I seriously doubt whether the clients will ever see those benefits and or cost savings trickle down to them.

[rapsaodan84]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

No, it wont be public nor will it be mined by the public.
It will save them money and time to confirm money transfers from bank A to bank B.
They will still charge you the same and it will probably take as long for you to "transfer" the money because it makes them more money.

How do they prevent the public from mining it and keep the network safe? maybe a PoS blockchain would make sense and they can hold everything at the beginning?

[boby-1]

it is now clear that banks are using bitcoin i mean to say the mining power to their use tjey are using it for their benifits

[zircon]

yes, I only see PoS working for something like this.

PoW and private blockchain just makes zero sense to me.

[zircon]

If they are using the Bitcoin blockchain, they are putting their value on and taking it "off" on the other side as well.

I still cannot quite fathom what that means for Bitcoin price. Because it is not value that would stay in/on the network.

At the same time, if this happens to a significant degree, mining would have to go up to secure the bigger value on the blockchain.

[S4VV4S]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

No, it wont be public nor will it be mined by the public.
It will save them money and time to confirm money transfers from bank A to bank B.
They will still charge you the same and it will probably take as long for you to "transfer" the money because it makes them more money.

How do they prevent the public from mining it and keep the network safe? maybe a PoS blockchain would make sense and they can hold everything at the beginning?

They will probably give the public a lightweight client, maybe even customer based - compiled at the time of account creation.
There wont be any public mining. 
Each bank will have pre-mined coins based on their fiat reserves.
PoS sounds about right but it will have to be thought of very carefully as different banks will offer different interest rates.
But I am guessing it will be along these lines.

[Denker]

But will it be a public ledger, can be mined publicly?

I just don't see how it is possible to create a private network and "mine" it.
Makes no sense.

Ripple is different though, as far as I understood. Ethereum has mining, and therefor is public?

Need to read up more on these things later tonight.

No, it wont be public nor will it be mined by the public.
It will save them money and time to confirm money transfers from bank A to bank B.
They will still charge you the same and it will probably take as long for you to "transfer" the money because it makes them more money.

How do they prevent the public from mining it and keep the network safe? maybe a PoS blockchain would make sense and they can hold everything at the beginning?

They will probably give the public a lightweight client, maybe even customer based - compiled at the time of account creation.
There wont be any public mining.  
Each bank will have pre-mined coins based on their fiat reserves.
PoS sounds about right but it will have to be thought of very carefully as different banks will offer different interest rates.
But I am guessing it will be along these lines.

That's sound like most scam altcoin these days, it would be worse than most scam altcoin these days
You can't mine at all & even can't use block explorer

I'm sure they're trying to make centralized-based blockchain

Of course these will be self controlled centralized "Blockchains". These structures don't deserve the name Blockchain.This is more like a light distributed database. It will closed and efficient for the banks.They will be able to reduce their costs massively.However I doubt their customers will pay the same.In result the banks' profits will be bigger.
Banks' blockchains and coins will not more than pure digital fiat. Still the same scheme.

[manselr]

All blockchains that aren't Bitcoin will ultimately fail. There's only a limited amount of resources to aim your machines at, and it will never be worth it to aim your machines at any other coin that isn't Bitcoin unless you want a quick and dump which is always the case. In ohter words, this means that they will have to either become closed blockchains (centralized) or join Bitcoin.

[Amph]

I never understood how a bank blockchain is supposed to work.
Who is mining? If it is just the bank people mining, than I don't see, why they would need a blockchain.
Who can look at it? If it is just the bank people looking at it, than I don't see, why they would need a blockchain.

Is there a white paper about it? Are they actually know, what they are talking about, or are they just throwing around words?

Blockchain technology could be useful for banks. I guess that would be only a distributed transaction processing system what would make transaction processing more resilient, faster and cheaper. But if they release a coin as well, they can use that as an internal or intra-bank currency with some pre-arranged exchange rates to local currencies so they can save time and money as they can use their own common currency when doing business between each other, and with the automated transaction of Ethereum they can automate the whole procedure, so no human intervention needed.

^^^This.
Chances are that they will probably create their own coin/token too.

yeah but it would be centralized at 100%, so i'm not bothering with them, nothing will be different than their current fiat money, expect some advantages for them only

[Mickeyb]

Very interesting. It will be interesting to see what will they choose even though I think they will choose what's the best for them, in their view, and this will be to form their own blockchain and even issue their own cryptocurrency.

For this they won't be needing mining, this will be pretty much a closed, centralized system. Of course, I hope they choose Ethereum or Bitcoin since this would give huge credibility to all of the crypto that's being developed at the moment.

I guess we'll see..