Following the success of Blockchain 1.0, Blockchain 2.0 has gradually taken over the market, being a remarkable technology in the field of Finance, Banking, helping to change the lives of people and improve the existing operation of the Market.
The world is changing gradually, removing old things, adopting new things, forcing us to adapt to the modern life; technology is also required to be more completed and optimized; otherwise it could be eliminated from the global movement. Blockchain is not an exception. While Bitcoin is now the most recognizable practical application of Blockchain, the the impact and potential of this technology on many other areas of life are worth considering.
See also: What is the application of Blockchain
What is Blockchain 2.0?
Soon after the first version, Blockchain 2.0 (Data + Smart Contracts) platform emerged with a representative of the Ethereum (ETH), creating a transformation for the financial sector.
If Bitcoin of the Blockchain 1.0 platform creates designs, then Ethereum builds houses. The “house’’ here means the Smart Contracts (also known as digital contract). Implementing these contracts has given us the opportunity to revolutionize the world, remove the intermediation, and allow us to place our trust in the current digital world. It is appropriate to integrate Finance and Banking with the application of assets including stocks, checks, debt, ownership and anything related to the agreement or contract in the most public and transparent way.
Blockchain 2.0 application
In the comparison with traditional banks, Blockchain can be seen as a complete history of transactions in a financial institution and each block is a personal statement. In addition, with the distributed database system as a shared digital ledger, Blockchain has the unique potential to simplify the operation of all parties, making it an ideal technology for financial institutions and stock exchanges. Blockchain 2.0 has been formally introduced, replacing expensive and ineffective accounting and payment networks of the previous finance sector; helping stock market operators save up to $ 6 billion a year (according to the report by Goldman Sachs).
At first, the banks and companies in the financial service industry were still skeptical because of concerns about the potential fraud of a novel technology, but they gradually began to conduct researches and have had a more serious look at Blockchain technology and its potentials.
See also: Blockchain and Applications
Typical applications of Blockchain 2.0
- Oliver Bussmann, CIO of UBS says that blockchain technology could “pare transaction processing time from days to minutes.”
- In 2016, the online retailer Overstock.com used Blockchain technology to sell and distribute more than 126,000 shares of the company, marking the historic milestone of the first publicly trading company using blockchain for stock exchange.
- R3 CEV, a Fintech company and also a global enterprise group of more than 80 of the world's largest financial institutions, has also used Blockchain to record, manage and synchronize financial information with blockchain APIs.
View more: Blockchain application in Medical
Undeniably, Blockchain 2.0 has become the "right hand" of the banking system and financial companies. Blockchain will surely go further and further on the road to conquer humanity. The world is still developing, why not Blockchain?