Blockchain is widely known as the platform of cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. Still, Blockchain potential is far more than just a payment tool, completely transforming the financial system.
See also: Blockchain application in Law
Current status of Finance
Despite the complexity, the banking industry is still haunted by the traditional system that may take hours or days to confirm basic transactions like selling stocks or money transfer. However, world’s first trade transaction using blockchain technology (involving cheese and butter exports) conducted by Barclays can the bank a second thought.
As the economy is continuously growing, the increase in the pace of banking services will soon market the old system “overload”. Large banks from all over the world have found a solution in Blockchain and plan to apply it to SWIFT system.
See also: Blockchain and Applications
Sooner or later, Blockchain will dominate banking system because it will reduce costs and transactions time, as well as creating a safer trading environment.
Apply Blockchain to Finance
Three major Japanese banks, Mizuho Bank, Sumitomo Mitsui Banking and Bank of Tokyo-Mitsubishi UFJ, have announced to apply blockchain technology in a peer-to-peer money transferring project. This has shown efforts to provide low-cost and high-security financial services High costs is long been a disadvantage of major banks and applying Blockchain may be the key to change the situation.In Asia, OCBC Bank is the first bank in the world to use blockchain technology in domestic and international money transfer services. It increases efficiency, enhances transparency, reduces costs, and improve customer experience.
At this point, the financial market is more like a battlefield, where institutions can only survive by forming alliances in commercializing blockchain technology. Rising above is R3 - Alliance of three of Australia's largest banks includes Westpac, Commonwealth, NAB, along with 40 banks and many financial institutions around the world.
The blockchain is turning the world upside down right now and it cannot be told what will happen. Still, it is expected to be better in every aspect.