Blockchain
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!
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