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September 16, 2016, 04:55:24 PM |
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" However, this particular blockchain has several features which financial services companies find compelling. It’s decentralized (doesn’t have a single point of failure), secure (utilizing cryptography to validate every transaction), immutable history (write-once, spend-only attribute of the ledger), efficient (exchange of information is fast and easy) and transparent (everything is documented).
To put it simply, multiple distributed ledgers are just a method of recording data digitally, and can be applied to anything that needs to be independently recorded and verified as having happened e.g. transactions, agreements, contracts, ownership, etc.
According to a SWIFT Institute Working Paper, it is the robustness and relative simplicity of the Bitcoin blockchain that has sparked the interest of similar technology to be applied to wholesale markets’ securities settlement as this can potentially reduce costs and risks.
And according to a White and Case report, a similar blockchain can also be used to improve and enhance currency exchange, supply chain management, trade execution and settlement, remittance, peer-to-peer transfers, micropayments, asset registration, correspondent banking and regulatory reporting (relating to “know your customer” and anti-money-laundering rules)."
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