link4116 link4117 link4118 link4119 link4120 link4121 link4122 link4123 link4124 link4125 link4126 link4127 link4128 link4129 link4130 link4131 link4132 link4133 link4134 link4135 link4136 link4137 link4138 link4139 link4140 link4141 link4142 link4143 link4144 link4145 link4146 link4147 link4148 link4149 link4150 link4151 link4152 link4153 link4154 link4155 link4156 link4157 link4158 link4159 link4160 link4161 link4162 link4163 link4164 link4165 link4166 link4167 link4168 link4169 link4170 link4171 link4172 link4173 link4174 link4175 link4176 link4177 link4178 link4179 link4180 link4181 link4182 link4183 link4184 link4185 link4186 link4187 link4188 link4189 link4190 link4191 link4192 link4193 link4194 link4195 link4196 link4197 link4198 link4199 link4200 link4201 link4202 link4203 link4204 link4205 link4206 link4207 link4208 link4209 link4210 link4211 link4212 link4213 link4214 link4215 link4216 link4217 link4218 link4219 link4220 link4221 link4222 link4223 link4224 link4225 link4226 link4227 link4228 link4229 link4230 link4231 link4232 link4233 link4234 link4235 link4236 link4237 link4238 link4239 link4240 link4241 link4242 link4243 link4244 link4245 link4246 link4247 link4248 link4249 link4250 link4251 link4252 link4253 link4254 link4255 link4256 link4257 link4258 link4259 link4260 link4261 link4262

Blockchain — “Bitcoin with Haircut” or Replacement for Inefficient Banking System?

Blockchain — “Bitcoin with Haircut” or Replacement for Inefficient Banking System?

    

Following other major banks and financial institutions

such as Goldman Sachs, JPMorgan Chase, the New York-based $335.4 bn banking giant, has started to utilize Blockchain technology to automate high throughput transaction processing. Most operations and settlements facilitated by banks including JPMorgan and Goldman Sachs require significant manual verification and labor. In most cases, bank wire and transfers can take at least five days to three weeks, due to the requirement of manual approval required by financial regulations, money transmission policies and KYC and AML systems globally. Although it will be more accurate to describe the efforts of Goldman Sachs and JPMorgan as the development of Blockchain technology-inspired systems rather than Blockchain-based decentralized applications as by law, banks are required to have strict control over their transactions and settlements.

“Blockchain vs. Bad Banking”

At the Blockchain Arica Conference hosted on March 2, Bitcoin and security expert Andreas Antonopoulos explained in a talk called “Blockchain vs. Bad Banking” that the actual Blockchain technology used by Bitcoin and other successful public Blockchain networks such as Ethereum require much more than the conventional “Blockchain technology” itself.

Antonopoulos stated:

“Blockchain is the technology behind Bitcoin. Which is incorrect. Blockchain is one of the four foundational technologies behind Bitcoin and it can’t stand alone. But that hasn’t stopped people from trying to sell it. Blockchain is Bitcoin with a haircut and a suit you parade in front of your board. It is the ability to deliver sanitized clean, comfortable version of Blockchain of Bitcoin to people who are too terrified of actually disruptive technology.”

Then what are banks actually building?

Cryptographic evidence and signatures are essential in most cryptographic platforms such as Blockchain networks as they allow financial service providers to record time stamps of settlements of assets and transactions in an immutable ledger. Because the vast majority of banking systems are centralized, they are vulnerable to sophisticated hacking attacks and security breaches. However, with the usage of Blockchain technology, banks such as JPMorgan Chase can process high throughput transactions efficiently and most importantly, securely.

JPMorgan: Blockchain will replace inefficient banking systems

Alex Liu, the CEO of AMIS, the Blockchain infrastructure provider that partnered with JPMorgan recently and joined the Enterprise Ethereum Alliance in its early days,

stated:

“The protocol is a vital part of efforts aimed at building the next evolution of the Internet of Value, similar to the creation of the TCP/IP protocol earlier in the history of computer networks.”

More to that, Liu explained that the JPMorgan Chase development team would showcase a new technology called proof of authority (PoA), a consensus protocol that would allow the verification of pre-approved nodes. Whether the pre-approval process of nodes will become an issue in the future regarding security and network efficiency will be answered by the public launching of JPMorgan’s launch of its PoA Blockchain in the near future. At the moment, JPMorgan Chase and AMIS remain absolutely confident that Blockchain will replace inefficient, insecure and centralized financial networks in the upcoming years, to optimize the settlement process of assets and transactions for users and customers.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member