- What you need to know...
- Blockchain is a nascent industry. It is moving beyond the incubation phase, but it is still largely the domain of proof-of-concept projects and small-scale production deployments.
- Some of the world’s most powerful companies – including Goldman Sachs, IBM, and Microsoft – are investing heavily in DLT to gain an early edge as it moves beyond incubation phase and bitcoin exclusivity.
- DLT will play an important role in enabling new business networks, and it will find its way into the core of many mainstream processes.
Impact of blockchain on retail banking
At its simplest, a bank runs a database and records claims against it. There are thousands of banks which all do pretty much the same thing. Each of them builds and maintains its own systems to support their work. Not only is this very expensive, it introduces barriers for automated communication and integration.
DLT has the potential to provide a universal distributed system that can be used by many institutions. This drives efficiency and brings systems together allowing for improved quality of service, opening up options for new products and services.