Despite years of development, and the failure of finance industry to highlight the application of labor blockchain for technology.
Experts believe that the banks have overlooked the most important concept of technology: decentralization.
The formation of a consortium R3 model and increasing the interests of big banks billions of dollars has led to become a global phenomenon Blockchain.
It scrambled large financial institutions and government agencies to implement this technology in various areas of its operations, specifically to improve the settlement of financial transactions.
Application Block Shin on infrastructure:
Banks, for example, focused on the application of this technology on the infrastructure of existing IT and financial systems to handle cross-border payments, and settlement of assets to reduce the cost and time dealing by both the bank and customers.
Venture capital firms turned in this direction, and the transition from traditional to FINTECH blockchain emerging, with the support of the banks and institutions supported by the government.
However, with hundreds of millions of dollars spent on the development of existing financial systems blockchain, the financial sector has yet to product demonstration work progress.
Why decentralization?
The main reason behind the failure of banks to deal with the technology Blockchain is the ambition to create a Blockchain own networks that can operate in parallel with existing applications. It means, rather than take advantage of the open distributed network technology can provide the Blockchain, banks tried to re-invent the technology for their own benefits.
Decentralization, and the concept that banks failed to address it, is the backbone of the IT block Shinn, a network element that makes the block Shin value and strength.
Until now, the largest Bitcoin was really successful example of technology block, Shane, because of the decentralized nature of the network and transparency Alpetkoan.
Financial systems:
The problem with the approach of banks primarily in conjunction with the financial regulations and compliance with it is required to deal with.
Since banks demanded by local and international authorities to follow strict Know Your Customer (KYC) and Anti-Money Laundering Regulations (AML), must blockchain network operating private to provide personal data, especially from their customers to law enforcement.
Thus, banks are not able to give up the idea of developing a private blockchain networks and applied to existing systems, the finance industry difficult to see the implementation of this technology.
Platforms that rely on data:
This inability of banks has also led to a major change in the direction of technology blockchain in the market, starting with the migration of financial applications for blockchain to platforms based on the data.
These programs have proven effective in the insurance and real estate, commercial finance industries, with leading emerging European companies
