The blockchain can add value to the financial sector
The expectation that the blockchain technology is creating makes it almost impossible to ignore. What is not so easy to find are real use cases, something that is also due to the immature state of development in this technology. The financial sector, it is by far the most attention has been paid to the Bitcoin technology and has led, in the last year, to something new that is not well defined but that is called blockchain technology. Some projects are working on the block chain blockchain) Bitcoin (and others want to develop private chains of blocks.
In what way can help the blockchain to make financial operations more efficient?
1. The blockchain payments and
perhaps this is the first functionality that anyone comes to the head when they understand the concept behind the blockchain technology. However, the main actors of the industry still have not found the right solution and are carrying out experiments on a variety of platforms.
SWIFT is developing projects based on private blockchains like the 42 banks associated with R3, consortium leader in the development in this field, which has begun to test also the solution based on Microsoft blockchain.
As we have seen above, the blockchain technology is in essence a “book” in which you can record transactions in a secure, efficient and decentralized.
This is a critical area in the development of the technology that is going to go much beyond transactions between banks on a global scale, since it may provide much value in transactions of all kinds, especially in the remittance market, in which the commissions and operational friction dramatically more expensive service.
2. Clearing and Settlement (Clearing & Settlement) and the blockchain
according to a study done by the Banco Santander in 2015, only in operational issues related to this, the blockchain technology could save around 20,000 million dollars annually by the cycles and deadlines by which, today, working most of the investment markets.
There are several entities working to solve is operational, as Digital Assets Holding with Hyperledger or Overstock with T0, in addition to EPIPHYTE and setl.
Eventually, there will be a new clearing system that will use the blockchain as technological base although the big question is who will have control over the same.
3. Digital Identity and the blockchain
It is expected that the “computational paradigm” that will star in this decade is the internet of things – Internet of Things (IoT) and which, along with the 5G, reconfigure the way in which coordinates all human activity, in the same way that made the PC in the 80 or the Internet of the masses in the 90.
To take advantage of all the potential of these technologies as a whole, it will be necessary to develop “below” a layer that efficiently manage transactions and here is where comes into play the blockchain.
If the digital identity of a person registers on a platform based on the Blockchain technology, our objects will not only be able to make transactions of information between them by associating them incorruptible form our identity but that you will be able to free monetary transactions.
In this way, our washing machine could make an order of detergent when it detects that it is running out or our fridge will be able to “self” in the same way.
Onename Shocard and are two of the companies that are developing solutions in this line.
4. Smart and the blockchain assets
register the transaction of something with a temporary seal clear and incorruptible is something very attractive in many industries, especially if we talk about assets in the financial sector.
Think of the immense amount of goods of all kinds that are bought and sold steadily in supply chains around the world and in which all are registered in the corresponding accounting books.
If we imagine that this is recorded in real time in a book published and distributed, we will be imagining “smart”.
The key in this regard is not record information such as serial number or value, but which could include all the information associated with that asset.
Imagine for example a container full of goods on a freighter that comes from China. May be recorded in real time has passed through customs, when pulled out, the ambient temperature, relative humidity and a long etc. It is worth everything you can imagine.
This may provide a differential value to insurers or to assess with much more accuracy ratings to offer financial products to companies and individuals.
5. Contracts and the blockchain
A smart smart contract or agreement is like a contract to use in which two or more parties agrees to do something or not to do so in exchange for another thing, only that what makes them smart is that you do not need to interested parties trust each other because it is code that executes the action.
In other words, is to delegate in the blockchain intermediation in all sorts of transactions.
In the case of the financial sector, the contracts could result in significant savings in costs charged to the liberation of transactions when particular circumstances, in addition to freeing up of intermediaries in administrative procedures and disputes of all kinds.
It is still too early to know precisely how to adapt this technology to a sector that is as large and as relevant as the financial although it can begin to glimpse some cases like these 5.