By: Vaenthan Gnanarajah
How many of you have heard about blockchain? Blockchain is a database that stores transactions from cryptocurrencies and are recorded publically and chronologically. Cryptocurrencies like Bitcoin are digital currencies that are heavily secured. Cryptocurrencies can use blockchain as proof for all transactions. The way it works is that a block is created to record recent transactions. Once the block is completed another block will be made in a never ending cycle. These blocks are linked in chronological order and can not be modified or deleted. All users of a blockchain system will be able to monitor their transactions simultaneously. This new tool will most likely transform the finance industry due to its simplicity, security and effectiveness. Recently, CNBC published an article on large banks’ interest in blockchain. HSBC, KBC, Natixis, Rabobank, Societe Generale, Deutsche Bank, and Unicredit are working with IBM in developing blockchain technology to use in their business. The blockchain is expected to be ready by the end of 2017. This is one of the first times blockchain will be used by big banks. With this innovative technology, these banks will have the luxury to expedite their domestic and international transactions more effectively. If you are in the finance or information technology world keep your eyes open!
The article can be found here: