Blockchain in banking
While the interest is huge, challenges remain for large scale adoption
Though the potential of Blockchain is widely claimed to be at par with early commercial internet, it is important that firms understand the key features of the technology and how it can solve current business issues.
Banks need to identify opportunities, determine feasibility and impact, and test proof of concepts. This will involve answering a series of fundamental questions related to dynamics of transaction and regulations underlying the transaction. The questions related to dynamics of transaction such as cost of implementation of the Blockchain based solution, structure of Blockchain—i.e., public, private, or consortium—and key stakeholders can be answered by the bank. However, the questions around regulations will have to be resolved through focused discussions with competent regulatory authorities for incorporation of their thought-process.
Banks will also need to have a concrete plan for transaction scalability. Due to lack of any precedence, banks will have to opt for a trial-and-error approach either internally or through partnering with a specialized technology firm. Download and read to learn more.