Blockchain adoption by banking sector

[pitham1]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?



*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology.

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[deisik]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?

*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology

Did you ask yourself who will be supporting all the network infrastructure required for the blockchain technology to work? It seems that you are implicitly assuming that folks will run their nodes just for enabling banks to employ this technology? So who will be paying for it? Also, don't forget that it should be excessively abundant to make confirmations valid, but this still doesn't provide the required legal status of any such transaction. If the sender (or receiver) disputes the transaction, what evidence and proofs can the bank show that the disputed transaction did actually happen?

Really, why would banks ever want to depend on some Internet dudes in such matters?

[Raimonn]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?



*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology.

Yes, they want the blockchain technology to reduce the cost of its services, and reduce the time that now they need to complete a transaction. But they don't want the transparency and the decentralization that bitcoin blockchain has.

[markyminer]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?



*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology.

Yes, they want the blockchain technology to reduce the cost of its services, and reduce the time that now they need to complete a transaction. But they don't want the transparency and the decentralization that bitcoin blockchain has.

i do not think that currency they need for such technology, as they have no concern with it, the already using their own technology like ONE LINK, but in future when the interest of the people will totally divert to online business ans shopping as in modern countries the change has already take place, then they may think about to adopt blockchain technology.

[antonioa]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?



*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology.

Yes, they want the blockchain technology to reduce the cost of its services, and reduce the time that now they need to complete a transaction. But they don't want the transparency and the decentralization that bitcoin blockchain has.

i do not think that currency they need for such technology, as they have no concern with it, the already using their own technology like ONE LINK, but in future when the interest of the people will totally divert to online business ans shopping as in modern countries the change has already take place, then they may think about to adopt blockchain technology.

I am sure that the banks only talking about the possibility of implementing these tehnologity. In practice, this will not happen soon. Some banks say that this technology will be able to keep track of debtors. How will it be in practice, I also can not imagine

[pitham1]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?

*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology

Did you ask yourself who will be supporting all the network infrastructure required for the blockchain technology to work? It seems that you are implicitly assuming that folks will run their nodes just for enabling banks to employ this technology? So who will be paying for it? Also, don't forget that it should be excessively abundant to make confirmations valid, but this still doesn't provide the required legal status of any such transaction. If the sender (or receiver) disputes the transaction, what evidence and proofs can the bank show that the disputed transaction did actually happen?

Really, why would banks ever want to depend on some Internet dudes in such matters?

Banks won't depended on some internet dudes. They will run permissioned block chains, with 15-20 banks participating as a consortium. Once the development costs are factored in, this will definitely be cheaper than manual verification and clearing of trades.

[CraigWrightBTC]

Unfortunately the bankings are just adoption blockchains technology
they still didn't adoption bitcoin become digital currency on their business
they have adopted blockchains technology for making easy services on their business.

[deisik]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?

*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

The legacy systems of banks are hugely inefficient. They have vast back offices just to reconcile trades, which blockchain does automatically. And it takes 2-3 days to confirm transfer of ownership of assets, which can be done in minutes using the blockchain. So obviously they are interested in blockchain technology

Did you ask yourself who will be supporting all the network infrastructure required for the blockchain technology to work? It seems that you are implicitly assuming that folks will run their nodes just for enabling banks to employ this technology? So who will be paying for it? Also, don't forget that it should be excessively abundant to make confirmations valid, but this still doesn't provide the required legal status of any such transaction. If the sender (or receiver) disputes the transaction, what evidence and proofs can the bank show that the disputed transaction did actually happen?

Really, why would banks ever want to depend on some Internet dudes in such matters?

Banks won't depended on some internet dudes. They will run permissioned block chains, with 15-20 banks participating as a consortium. Once the development costs are factored in, this will definitely be cheaper than manual verification and clearing of trades

And now ask yourself why they would need this consortium in the first place?

To confirm transactions from one trusted bank to another trusted bank? But if they trust each other, why would they need confirmations from other banks? Ultimately, they are all trusting a Central bank, and that's how the system works (if I'm not mistaken). Namely, transaction from one bank to another bank goes through an intermediary which is the Central bank. There is absolutely no need for the setup you assume. In any case, it is the Central bank which sets the rules for all commercial banks in its system, and I don't think that it will ever endorse this idea (basically because of its existence as such)

[WestWorld]

Blockchain technology offers a lot of new opportunities for banks and financial institutes. The driving factor is to decrease costs. Banks do not need intermediate clearing companies (which charges fees for every transaction) anymore.

[Victorycoin]

They like the transparency, trust and cost effectiveness that blockchain technology brings, but they dislike Bitcoin and instead wants to tweak the same technology to develop an altcoin, that would provide for them the control that Bitcoin denied them of. At any rate and whatever they do, Bitcoin is here to stay and a copy could hardly be better than the original

And how are they going to make use of that?

I mean employ the "trust and cost effectiveness that blockchain technology brings" to their advantage in practice? As I see it, for that they would need to create another decentralized network which would basically cost them nothing, like the Bitcoin network costs nothing since no single individual or entity grabs all the profits. Of course, the Bitcoin network does cost a lot, but these costs are compensated by profits that are shared in the same network, so it is basically a win-win situation and no costs entailed. I don't think that banks would be able to leave the costs to the network while themselves would only reap profits. In other words, who will be running network for them for free?

Banking processes as presently is, is expensive and very time consuming as it relies heavily on a team of people to nose through books and figures. Use of blockchain technology however offers some relief that are irresistible and here is what some banks are making of the situation:

http://economictimes.indiatimes.com/industry/banking/finance/banking/big-banks-plan-interbank-blockchain-platform/articleshow/56770736.cms

[deisik]

They like the transparency, trust and cost effectiveness that blockchain technology brings, but they dislike Bitcoin and instead wants to tweak the same technology to develop an altcoin, that would provide for them the control that Bitcoin denied them of. At any rate and whatever they do, Bitcoin is here to stay and a copy could hardly be better than the original

And how are they going to make use of that?

I mean employ the "trust and cost effectiveness that blockchain technology brings" to their advantage in practice? As I see it, for that they would need to create another decentralized network which would basically cost them nothing, like the Bitcoin network costs nothing since no single individual or entity grabs all the profits. Of course, the Bitcoin network does cost a lot, but these costs are compensated by profits that are shared in the same network, so it is basically a win-win situation and no costs entailed. I don't think that banks would be able to leave the costs to the network while themselves would only reap profits. In other words, who will be running network for them for free?

Banking processes as presently is, is expensive and very time consuming as it relies heavily on a team of people to nose through books and figures. Use of blockchain technology however offers some relief that are irresistible and here is what some banks are making of the situation:

http://economictimes.indiatimes.com/industry/banking/finance/banking/big-banks-plan-interbank-blockchain-platform/articleshow/56770736.cms

I was reading the article and it suddenly struck me why this idea might not work out. Below is the interesting part that pushed me toward this conclusion (emphasis added):

Unlike existing technology systems in which a bank maintains its own database, a blockchain system would allow banks to maintain a copy of the transactions. As they occur, the system would update all the records simultaneously, removing the need to reconcile transactions between different banks

So why would any bank want to make its transactions known to other banks? I understand that they can be made anonymous, but how would the banks then find out who is the receiver of the funds sent (in the sending bank) and who sent them (in the receiving bank)? For this system to work, the banks would have to disclose all the details of the transactions they are sending to another bank to all other banks in this system. Indeed, they could encrypt the contents but why then not send the transaction directly to the receiving bank signing it with the public key?

I still don't see any sense in this endeavor

[Clement Kaliyar]

Unfortunately the bankings are just adoption blockchains technology
they still didn't adoption bitcoin become digital currency on their business
they have adopted blockchains technology for making easy services on their business.

The technology behind bitcoin is the greatest invention and so is the reason blockchain is being adopted or planning to adopt by major financial institutes.Adopting bitcoin as a mode of payment depends upon individual business owners as it is not a adopted by the majority of people.Once the demand increases then you could see major business accepting bitcoin as a mode of payment and inorder to do so they have to sort the transaction delay we are facing right now.

[Yakamoto]

For the well informed, can someone englighten on what the banks are doing with block chains?

Is it simply using blockchain to confirm transaction? All looks so fancy.

Take for example the latest report about using blockchain for small business facilitated by banks *

What do they really do?



*http://www.coindesk.com/new-small-business-blockchain-actually-big-deal/

From what I have heard, there was a bunch of hype about the blockchain being used by banks because everyone thought it was going to be some insane revolution within banking, but then everyone realized that it's just a large and expensive, however more secure, database.

It has more application in stock trading, like what The Royal Mint or whatever it was was planning to do with gold.

[Slark]

Sector of financial technologies is pretty stiff. Banks are still using some really ancient solutions, they used more than 100 years ago!
You didn't know that? Wire transfer - which is pretty much the most popular method of sending money thought bank network was first performed in 1872 via telegraph network.
And you think thank will Banks change their ways just because blockchain in here?

[CraigWrightBTC]

Unfortunately the bankings are just adoption blockchains technology
they still didn't adoption bitcoin become digital currency on their business
they have adopted blockchains technology for making easy services on their business.

The technology behind bitcoin is the greatest invention and so is the reason blockchain is being adopted or planning to adopt by major financial institutes.Adopting bitcoin as a mode of payment depends upon individual business owners as it is not a adopted by the majority of people.Once the demand increases then you could see major business accepting bitcoin as a mode of payment and inorder to do so they have to sort the transaction delay we are facing right now.

Yes you are right and I think it is just about time for banks adopt bitcoin too,
Wait until there are many people whom use bitcoin for payment method on their life
so the banks must adopt bitcoin on their service not blockchain technology only.

[Zadicar]

Unfortunately the bankings are just adoption blockchains technology
they still didn't adoption bitcoin become digital currency on their business
they have adopted blockchains technology for making easy services on their business.

The technology behind bitcoin is the greatest invention and so is the reason blockchain is being adopted or planning to adopt by major financial institutes.Adopting bitcoin as a mode of payment depends upon individual business owners as it is not a adopted by the majority of people.Once the demand increases then you could see major business accepting bitcoin as a mode of payment and inorder to do so they have to sort the transaction delay we are facing right now.

Yes you are right and I think it is just about time for banks adopt bitcoin too,
Wait until there are many people whom use bitcoin for payment method on their life
so the banks must adopt bitcoin on their service not blockchain technology only.

Nope,they wont accept bitcoin no matter what since government do really knows about bitcoins decentralization infact if they know about blockchain technology they will surely create their own coin or e-currency rather than accepting bitcoin on banks.Its an impossible thing to happen.

[webtricks]

I would like to quote something from ICICI Bank's Official Page-

In October 2016, ICICI Bank, in partnership with Emirates NBD, became the first Indian Bank to successfully execute transactions in international trade finance and remittance using blockchain technology. It has enabled the Bank to exchange and authenticate remittance transaction messages as well as original international trade documents related to purchase order, invoice, shipping & insurance, among others, electronically on blockchain in real time.

So in today's era, large number of banks started using blockchain technology for their working and it may be possible that we will see a completely different banking system within next decade!

[sportis]

Banks don't like bitcoin but they adore blockchain. According to fortune blockchain will be used by 15% of big banks by 2017 and after four years IBM claims that 66% of banks expected to operate blockchain in commercial production http://fortune.com/2016/09/28/blockchain-banks-2017/. As it is easily understood banks even after a 8 years they found out the potential of blockchain and nowadays they running to simplify transactions, to lower the costs and to offer new banking products in the extended financial ecosystem.

[Dudeperfect]

This is something more than the bitcoin, they are working on blockchain to improve the speed of their transactions and confirmation. It has nothing to do with bitcoin unless any bank directly accepting or giving any service regarding bitcoin. Have a look at this news,

ICICI Bank executes India’s first banking transactions on blockchain in partnership with Emirates NBD.

Banks are interested in this technology because this technology is faster than the traditional way of confirming transactions on global level.

[Viscore]

This is something more than the bitcoin, they are working on blockchain to improve the speed of their transactions and confirmation. It has nothing to do with bitcoin unless any bank directly accepting or giving any service regarding bitcoin. Have a look at this news,

ICICI Bank executes India’s first banking transactions on blockchain in partnership with Emirates NBD.

Banks are interested in this technology because this technology is faster than the traditional way of confirming transactions on global level.

Great job for the bank for copying the blockchain technology system, it will help them to minimize their expenses while maximize their income if you know what I mean.
With blockchain technology like, they do not need to invest in high cost system just to track their transactions as with blockchain everything is fast and easy. This news is good and for sure with this experiment when successful, it will trigger other banking sector to follow.