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August 14, 2020, 06:24:05 AM |
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It's no surprising news that Blockchain holds potential implications for global commerce. It could make trade more efficient by removing the manual and paper-based processes and introducing streamlined and automated ones. A public blockchain can be a great collaborative tool because it’s decentralized, and no single entity can own it.
That’s why blockchain is more than just the underlying technology for cryptocurrencies like Bitcoin or Ethereum.
We also have been seeing over the past few years that Banks are heavily investing in Blockchain and exploring the distributed ledger technology.
What seemed like a thing of scifi-movies is now turning out to be a reality. We are not far off from seeing Banks fully evolve so that they catch up with technologies such as Bitcoin and others. Just like there is no escaping the system, there is no escaping the new reality of digital money. If banks don't play catch up they need to perish and Banks have realized them quite early ( I still think banks have some time left to survive).
Some popular Banks exploring blockchain :
1. Industrial and Commercial Bank of China (ICBC)
2. Agricultural Bank of China Limited
3. ALFA Bank from Russia
4. Yes Bank from India
5. UOB (United Overseas Bank) from Singapore
6. CommonWealth Bank from Australia
7. LatiPay from New Zealand
8. Kotak Bank
9. RAK Bank
10. The Federal Bank from India
It is indeed interesting that so many banks have been exploring blockchain or distributed ledger technology. In the process of exploring this revolutionary technology banks have realized that there is no use in re inventing the wheel. Many have realized that there is no point in closed permissioned blockchains. To harness the true power of Blockchain they need public blockchain. But, as we all know Banks deal with financial details and instruments that may require privacy and everything cannot be public.
Another problem with public ledgers is the factor of accountability and anonymity, because Banks need to follow certain,strict guidelines.
I think by providing onchain-ID verification and regulatory compliance provided by Blockchain protocols such as Concordium at a base protocol layer, it would become easier for blockchain enterprise adoption and help Banks make the shift to Public blockchains. Concordium claims to the worlds first public blockchain to have regulatory compliance and on-chain ID verification.
They are designing a 2-Layer Consensus Mechanism that combines a Nakamoto-style Blockchain with an innovative finalization for fast transactions and secure finality under adverse conditions.Concordium includes an identity layer at the protocol level and a ZK Proof Based mechanism to ensure a high level of privacy ( Banks would love privacy since it is very essential for them to operate ) and regulatory compliance at the same time.
Banks want privacy not anonymity. I wont be too surprised if many Banks switch over to Concordium as a choice of their Public Blockchain to leverage public blockchain but also uphold privacy and their standard business practices.
The world is changing so should the banks.
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