Banks' own Blockchain?

[manselr]

There's absolute no point in having a blockchain system if it's centralized. I mean yeah, its still an imrpovement over the traditional banking system and by using a blockchain you are automating a great deal of stuff (which by the way means bye bye to a lot of paperwork related jobs) BUT the fact is not decentralized just kills it's purpose, only the clueless will use it and not Bitcoin.

[VCLChief]

There's absolute no point in having a blockchain system if it's centralized. I mean yeah, its still an imrpovement over the traditional banking system and by using a blockchain you are automating a great deal of stuff (which by the way means bye bye to a lot of paperwork related jobs) BUT the fact is not decentralized just kills it's purpose, only the clueless will use it and not Bitcoin.

plus I believe no financial institution wants to be perceived as threatening the existing status quo when it comes to currencies... too big of a power grab.

[knowhow]

They will reduce the fees and their workers number,since wont need them anymore,but their technology will be just for them,i doubt they will allow any of us use bitcoin or their coin if they create it,centralise a coin wont work what you will get with something that doesnt moove?frozen funds?well we will be able to see what they will do on the nexts months.

[rickadone]

City bank has it's own 3 blockchains for it's research and development team on Bitcoin blockchain technology. It's good thing to happen to the world, to adapt bitcoin at least this way...

[turvarya]

I guess, I just strongly disagress with some definitions of blockchain.
If there is no PoW or PoS or similar, I don't see, what makes it a blockchain. Is there a network of nodes, which store the same data? That is not really a blockchain, just some kind of backup.

[coinpr0n]

Redundant, distributed book-keeping, getting rid of intermediaries and speed are what banks are poised to gain from blockchain technology.

[killerjoegreece]

Its absolutely certain that banks will create their own coins and their own blockchains. people will force them to do it.

[Q7]

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?

I don't think there will be any incentive or reward given for solving each block. Maybe a concensus reached among the banks to maintain a general ledger and the cost of maintenance shared among them. The benefit would be a common ledger for transparency.

[knowhow]

Im pretty sure banks will make their coin and well all months share some wealth with  their holders otherwise it will just fail as most altcoins....they need some contract that last some years or forever,and requiring identy...

[zircon]

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?

I don't think there will be any incentive or reward given for solving each block. Maybe a concensus reached among the banks to maintain a general ledger and the cost of maintenance shared among them. The benefit would be a common ledger for transparency.

Isn't this then a glorified central database with defined read/write access rights then.

[TransaDox]

City bank has it's own 3 blockchains for it's research and development team on Bitcoin blockchain technology. It's good thing to happen to the world, to adapt bitcoin at least this way...

So who is in this research and development team then? There is a very small gene pool of people that understand the technology in its entirety, and even less that can interface to other disciplines required for these organisations, so who are they? Most dev teams I've met in the banking sector are just java coders who outsource fpga and the hard stuff.

[gentlemand]

Its absolutely certain that banks will create their own coins and their own blockchains. people will force them to do it.

All these 'blockchain' projects exist to make the transfer and use of fiat faster and slicker. That's it.

When has a bank in modern history ever created its own currency? Never. That's the job of central banks and governments. If there is to be a coin of sorts it'll be a token representing fiat value.

These blockchains are likely to be like an intranet. They'll be a closed system with no relation to anything available to the public.

[chennan]

Its absolutely certain that banks will create their own coins and their own blockchains. people will force them to do it.

All these 'blockchain' projects exist to make the transfer and use of fiat faster and slicker. That's it.

When has a bank in modern history ever created its own currency? Never. That's the job of central banks and governments. If there is to be a coin of sorts it'll be a token representing fiat value.

These blockchains are likely to be like an intranet. They'll be a closed system with no relation to anything available to the public.

Ahh, very good point... but at the same time the banks run into the flaw of "convenient" on hand currency transactions.  They still need to request money from the fed from time to time to get physical money to distribute out to the people... all this is, is a more reliable and secure form of wiring money from bank to bank...

[coinableS]

Banks talking about blockchains are always the same thing. They want to create private blockchains which is another way of saying they want to create shared databases.

[randy8777]

Im pretty sure banks will make their coin and well all months share some wealth with  their holders otherwise it will just fail as most altcoins....they need some contract that last some years or forever,and requiring identy...

at this point they don't need to make themself a new coin. they are currently only exploring how far they can go with the blockchain in current form. maybe they will hire the best developers to bring the blockchain technology to the next level and make it perfectly suitable for them.

[BlindMayorBitcorn]

Its absolutely certain that banks will create their own coins and their own blockchains. people will force them to do it.

All these 'blockchain' projects exist to make the transfer and use of fiat faster and slicker. That's it.

When has a bank in modern history ever created its own currency? Never. That's the job of central banks and governments. If there is to be a coin of sorts it'll be a token representing fiat value.

These blockchains are likely to be like an intranet. They'll be a closed system with no relation to anything available to the public.

Weary giants of flesh and steel. They have no real sovereignty where we gather.

[vm_mpn]

Its absolutely certain that banks will create their own coins and their own blockchains. people will force them to do it.

All these 'blockchain' projects exist to make the transfer and use of fiat faster and slicker. That's it.

When has a bank in modern history ever created its own currency? Never. That's the job of central banks and governments. If there is to be a coin of sorts it'll be a token representing fiat value.

These blockchains are likely to be like an intranet. They'll be a closed system with no relation to anything available to the public.

^ This ^

[ashour]

They want to use the blockchain so they seem "innovative" to the young folks, but in reality they don't care about bitcoin,ethereum, blockchain etc.

[chennan]

They want to use the blockchain so they seem "innovative" to the young folks, but in reality they don't care about bitcoin,ethereum, blockchain etc.

Idk, maybe they would like to use the blockchain to ease transactions to other countries without it costing so much? Or let the customers have the ability to wire money to whoever anywhere at any time?

I know it's a pain in the ass for me when I can't move my money around on the weekends.

[Blawpaw]

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?)

Proof of work only leads to decentralization if you have a large distribution of the network. as more participants the network has the more the network becomes decentralized...