The Existing Infrastructure used by Financial institutions like Banks is Archaic, Slow, and Costly, with hardly any innovation in the past three decades.
Nine of the World’s renowned Banks, including JPMorgan, Royal Bank of Scotland, Goldman Sachs andBarclays, are collaborating with New York-based financial tech firm R3 to create a new framework based on Bitcoin’s Blockchain.
Yes, they are back in the game yet again, but this time officially!
Blockchain — the public and decentralized ledger technology that underpins all Bitcoin transactions has been now recognized as “the future for financial services infrastructure”.
The blockchain technology is a way of keeping records by listing the owner’s name with all the previous and present transaction the client was involved. It is a public ledger where a list of all the transactions ever executed is maintained.
The Banks are planning to develop and implement Blockchain-like Technology where distributed/shared ledger standards are going to replace (for better, of course) the current ledger transactions.
The idea behind such an initiative is to maintain the financial records securely without any central authority by adopting the Decentralized Blockchain technology.
The potential benefits of blockchain technology to banking institutions are almost innumerable, for example, this technological innovation is considered more safe and secure when compared to the conventional methods currently in use.
The Name of the Banks teaming up are:
Commonwealth Bank of Australia
Royal Bank of Scotland