What's with all the comparison between blockchain and banks?

[Michael_Cox]

Originally a lot of people thought that bitcoin/the blockchain would go on to replace the traditional banking system whereas in reality it is more likely to shake up the traditional banking system and co-exist along side it. But a lot of people still harbor a lot of resent towards the traditional banking system and would like to see it destroyed, therefore they want to try and constantly make it known the bitcoin/the blockchain is a better alternative and to steer people away.

This is exactly one of the reasons why I asked. I kept seeing people start a thread or say how the blockchain is going to replace the traditional banking system when the truth is I don't see this happening anytime soon or even in the next 10 years. Banks are too established to be sent out of business just like that. Besides, there are a lot more people using traditional banking system than blockchain. Some aren't even aware of the blockchain system so it doesn't make sense to make such false claims. I can understand preference, but to spread lies and rumors is just beyond ridiculous.

Take an example of Japan. In Japan, crypto currency is legal and they also have the century old banking system thriving together. So there is no competition between the banking and crypto system to outbid each other.

This is what I'm talking about. Banks and blockchain can definitely co-exist without trying to put the other down. This is even better because then people would have options, right?

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[MartinDonald]

Applying bitcoin technology to banks helps banks comply with the Anti-Money Laundering and Customer Compliance laws, but at some point, these blockchain technologies seem to have little relevance. to innovation as the basis for Bitcoin Virtual Currency.

[Isai Arnold]

While banks store our money in their strong room,the blockchain keeps track of every transaction we carry out on this decentralized network,while wallets store our tokens. It's better than banks or that there's a competition between them both.

[Ramya494]

One can actually use both the systems one after the other ,it's not that fiat transactions should be stopped to choose Blockchain or one who store on banks cannot invest in crypto. One can do both at a while if security is their major concern they can choose BlockChain at times when they feel banks aren't safe and they can also choose banks over Blockchain if they choose to know the exact identity of happening transactions.

[bibop555]

No one's pitting the both systems against each other,they both perform similar/different purposes, it's just that what the banks are to fiat is exactly in one way or the other what the blockchain technology is to cryptocurrencies(bitcoin)

[dablatair]

Hello,

Yes of course they could live together as they are complementary but it is like always, everybody always compare the new to the old/existing. It is obvious that it will continu but finally when development of crypto will be enought known and accept, an equilibrium will be find and each will be use for the purpose they desserve the best.

[meanwords]

I think they compare it just to create drama, but they both have their own advantages and disadvantages. People are hypocrite, even if they say that they don't want something to use or do anything with it, they will still do it despite saying that banks sucks and they don't use it anymore, they still do in anyway.

[shekt4]

I get it. Blockchain technology is a great invention and it's definitely a technological breakthrough. But do we really have to pit it against the banks and he traditional banking system? Couldn't those two live in peace without people having to choose one over the other? It's not like anyone has completely stopped putting their money on their bank accounts and invested it all in cryptocurrency. Is there anyone here that actually did this?

Bitcoin is a write-uncontrolled, read-uncontrolled database. That means anyone can write a new block into the chain, and anyone can read a block in the chain.

Blockchains allow different parties that do not trust each other to share information without requiring a central administrator. Transactions are processed by a network of users acting as a consensus mechanism so that everyone is creating the same shared system of record simultaneously.

The value of decentralized control is that it eliminates the risks of centralized control. With a centralized database, anybody with sufficient access to that system can destroy or corrupt the data within. This makes users dependent on the administrators.
A permissioned blockchain, like a centralized database, can be write-controlled and read-controlled. That means the network or the protocol can be set up so only permissioned participants can write into the database or read the database-banks are operating base on this model making it very vulnerable!!....of course it will take some time for massive adoption....notwithstanding all the great features of decentralisation and a permissionless mechanisms it will definitely take some time for some major changes to take place...for now move with the two( banks and cryptocurrencies) is the way forward.....gradually one will die on the way!! Lol thank u!

[Kaznachej123]

Bank keeps money, makes transactions, blockchain keeps record of transactions - so, banks and blockchains are not rival, and Banks around the world are adopting or testing blockchain. Crypto is vast, there are Centralized and decentralized crypto. And by characteristics, decentralized crypto like BTC is the best form of money for the future and best tool to get beck your financial rights from central banking bullshits.

   The second central bank to fully embrace BTC will be okay and not have to be the first. This is why none want to be the first, they understand their value and the value of the integrity shown of ignoring it until they have to. The value of sleight of hand is immense.

[kzozenberg]

I do not think that banks will give way to bitcoin but the use of blockchain technology will greatly help the banking business . Bitcoin will always be on the Internet as it is a virtual currency.

[Marshall14]

I understand the fact and reasons why most times users of this network tilt their allegiance to the blockchain technology,and blindly claim its better than banks, or going to send the banking system into oblivion..

But every honest cryptocurrency enthusiast should know better than believe such, the crazy part is everyone in this system makes use of our traditional banking system,so then how's it gonna go away

Banks have been here for a very long time unlike the blockchain technology that's barely 10 years old, it's done a lot though in that ten years, but not enough to pit it along side an age long establishment..

Hopefully this comparison will stop and the Two systems allowed to thrive side by side

[gesdan]

the big difference is in the structure, blockchain is the decentralized and the bank is not decentralized it means that bank have the centralized. so it is the big difference between blockchain and the banks

[abanansah]

Blockchain is eliminating the bureaucratic process that banks have use to monopolize how money is managed. With blockchain, the freedom lies in your hands to control your funds than with banks.

[xfaqs01]

bank are intermediares or third trusted party to hold your money and decides what, when, how much you send or spend your own money because they are heavily regulated, blockchain on the other hand eliminates third parties or intermidiares or middle man like banks, you have full control on your money and your blockchain or bitcoin account itself i your bank.

[Jayleen Fernandez]

If the newer idea comes, some will definitely put that in comparison with the older one. But there is a point, if crypto really goes global, then people are supposed to use it solely cause of the feeless transaction and the anonymity. But now a days, its almost impossible to go on without fiats. So let's just live in the present and skip the debate.

[googs84]

I get it. Blockchain technology is a great invention and it's definitely a technological breakthrough. But do we really have to pit it against the banks and he traditional banking system? Couldn't those two live in peace without people having to choose one over the other? It's not like anyone has completely stopped putting their money on their bank accounts and invested it all in cryptocurrency. Is there anyone here that actually did this?

Its not about comparison really but its all about how things can be improved, modified and upgraded in the current traditional system of banking. The banking system that we see today is perfect I guess but blockchain can offer something more that a swift-chain may not. There are always limitations on how much you send, use, process on daily basis when it comes to the banking. However these things are avoidable with the blockchain use itself. Plus it can empower the safety and security of funds by complex maths and thus the need arises to use something like that.

Its not really a comparison but looking forwards towards the best business model.

[Yurkov]

It's all about trust. Banks for hundreds of years have been considered the safest deposit of valuables because they were secured in the right way. Through hundreds of years, they began to take advantage of their position and operating costs have increased many times. Bitcoin eliminates the costs that banks charge. In this way banks are unnecessary, because every man can secure his money on the same level as the bank, so is enough good insurance - just like for a car or house.

[Ruggiero45]

It is also surprising to me too seeing such comparisons. Honestly it feels absurd to me because banks store cash and makes exchanges while blockchain keeps the record of the exchanges, so I think they are not rivals rather they will co-exist together.

[Saunder2018]

Some people have border line resentment towards banks and they categorically seek deprecation of current banking system. While most of the alleged situations about banks are bitter truth, however I don't believe you just can get rid off banking system without making the whole economy fall apart. Bitcoin is designed such way that it would be complementary to banks. As someone pointed out, there are lots of politics involved with traditional banking system and and to be honest, its our gateway to escape such dirty mess.

[Dennie741]

If someone thinks bitcoin is going to replace fiat currency, he can not be more wrong. This is the mistake we are making. Bitcoin will be co existing with the banking system as it is doing now.