[2016-01-23] Goldman Sachs nails why banks are so excited

[shane]

Banks are going gaga for blockchain technology, the protocol developed to underpin bitcoin.
It uses complex cryptography and a wide network of records - known as a "distributed ledger" - to eliminate the need for a central bank or middle man to regulate transactions.

Banks have been swarming around the technology, with 42 investment banks signing up to an industry-wide group looking at how to use it and Goldman Sachs declaring in a note that it has the potential to change "well, everything."

http://www.businessinsider.in/Goldman-Sachs-nails-why-banks-are-so-excited-about-the-technology-behind-bitcoin/articleshow/50696028.cms

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[Kprawn]

I do not how transparency will help them, because they like to do things behind closed doors in private permissioned ledgers. The thing that might

interest them, is the cost savings for their administration tasks and that would mean more profits going to the shareholders. The Blockchain is being

exploited for the very thing it was developed to replace. How ironic 

[Quantus]

If they try to build their own network they won't be-able to secure it without something like Bitcoin at its core.
What they really want is to take over the development of Bitcoin. 

[fancy_pants]

really, these R3 propaganda articles should be moved to alt coin section.

[indiemax]

Correct,Mike Hearn and his Bitcoin to R3 sellout

Should be moved to scam

[BellaBitBit]

If they try to build their own network they won't be-able to secure it without something like Bitcoin at its core.
What they really want is to take over the development of Bitcoin. 

this!  And, they are not excited about anything.  I have a hard time seeing bankers getting excited about anything that does not directly benefit them.  Why would banks be excited about an open source de-centralized project?  Should be interesting to watch them build their own coin/blockchain/blockcoin/fiatcoin/slavecoin...whatever they want, it won't work.

[European Central Bank]

Out of curiosity why wouldn't an inter bank block chain work? As long as access to it is restricted to only being between financial institutions can anything go wrong? It's not gonna change things like inflation or debasement but it might make transfers faster and that's a good thing.

[aso118]

I do not how transparency will help them, because they like to do things behind closed doors in private permissioned ledgers. The thing that might
interest them, is the cost savings for their administration tasks and that would mean more profits going to the shareholders. The Blockchain is being
exploited for the very thing it was developed to replace. How ironic 

Cost savings and faster settlement times - That definitely are the 2 reasons why banks are looking at the blockchain. But why do you think blockchain is being exploited for the very thing it was developed to replace? 

[Kakmakr]

I do not how transparency will help them, because they like to do things behind closed doors in private permissioned ledgers. The thing that might
interest them, is the cost savings for their administration tasks and that would mean more profits going to the shareholders. The Blockchain is being
exploited for the very thing it was developed to replace. How ironic 

Cost savings and faster settlement times - That definitely are the 2 reasons why banks are looking at the blockchain. But why do you think blockchain is being exploited for the very thing it was developed to replace? 

I think what the person is trying to say is the old Libertarian thoughts are that Satoshi's view on centralized services like banks were to replace them with Bitcoin. I do not necessarily agree with that train of thought, but I think it might be a better solution for many of the problems associated with these services.

Will Bitcoin replace the banks? No, I doubt it. They will just adapt to the new technology and keep doing business.^sad^