Blockchain technology, even in its infancy, has disrupted different business sectors and domains. Promising features such as decentralization, immutability, transparency, and security make it appealing in the current and future digital world. There is no denying that cryptocurrency is the future of money and Blockchain being the backbone technology behind all the cryptocurrencies, banking and finance industry is leading the way in exploring the potential of blockchain.
There are several roadblocks in the way. However, Blockchain has the potential to transform the financial and banking industry by reducing potential operation and labor costs. According to a TwC report, 24% of financial executives from all around the world are very familiar with blockchain technology.
Each day, hundreds and thousands of funds are transferred from one region to another via highly dependent manual networks which are error prone and vulnerable to frauds. As a result, numerous financial institutes are researching on using blockchain to enhance their systems.
Gaints like JP Morgan Chase have placed thier faith in the fututre of Blockchain technology. The American multinational bank has already started a new division called the Quorum specifically for research and implementation of Blockchain technology. Quorum is a distributed ledger and smart contract platform for enterprises that support speedy transactions and throughput addressing challenges for finance industry, banks and beyond.
Bank of America have also started funding the blockchain projects. Bank of America has filed filed a patent document which was published by the U.S. Patent and Trademark Office. The document talks about the implementation of a permissioned blockchain for securing records as well as authenticating business and personal data.
Another name in the line is Goldman Sachs, who is actively involved in research and support of the distributed registry technology. They have invested in a cryptocurrency project called Circle. The project is considered as one of the most well funded startups in the blockchain space. It aims to solve the key problem of volatility in the digital currency space thus, making the finance sector more reliable with crypto options.
With more and more institutions taking initiatives in using Blockchain technology for supporting their financial operations, Blockchain can be a game changer in the financial and banking sector.