The bank replaces the facsimile with a block. Is it worth it?


nnnIn the financial industry, the most popular topic of non-block chain must go. And this technology is also experiencing various forms of testing, to replace the decades has been relatively mature development of traditional technology. This technology is undoubtedly full of prospects, but the current speculation around the technology but also will hinder the number of technology-related companies to work. If this technology is to be used more widely, it is necessary to prove that these systems are more efficient than other alternative systems.n
nnTranslation: Clovern
nNow the most popular topic in the financial industry is none other than the block. The technology is being tested in a variety of ways, with positive confrontation to replace the relatively mature technology that has evolved over the decades. But since the block-based system has been deployed in place, the advocates need to do is to prove that these systems are indeed better than other alternative systems.n
nMercedes-Benz manufacturer Daimler used block-chain technology to borrow 100 million euros ($ 114 million) from the German bank in Baden-W├╝rttemberg. In the past to obtain such loans need to develop contracts, communicate with investors, pay and conduct a comprehensive management. This outdated way is clearly required to be confirmed by a fax machine.n
nIn short, traditional loan contracts are managed in a similar format, and rely on the chain of “smart” contracts to automatically generate loans to the commissioned transaction books, create agreements and checks to ensure that payments can be received. With block-based loans, all stakeholders are able to immediately access all relevant details of the same distributed record (ie private block chain).n
nDaimler spokesman said that although the company is seriously considering the block chain technology, it does not rule out the company in the process of exploring innovative ways to consider other systems. It is not every time the modernization process to block the chain as the main content, even now some time it seems really like this.n
nOn the block chain there is speculation, because this technology is undoubtedly a great prospect. This technology supports Bitcoin and provides a secure way of storing and transferring value through encryption. While the technology is also designed to eliminate the need for a single central institution, such as a bank. Financial companies are also looking for distributed tax books to more effectively manage contracts and simplify their operations.n
nIf you think the block chain will completely subvert the traditional way of doing things, then things like corporate loans and settlement of this ordinary things suddenly began to become very exciting. As a result, many companies are developing block-chain projects or joining industry groups that are studying the impact of the technology on their business to hedge their bet. Santander Inno Ventures argues that by 2022, the chain chain can reduce bank turnover costs by up to $ 20 billion a year.n
nBlock chains outperform any other system is to eliminate the need for mutual trust between opponents. This can revolutionize complex systems with high risk of crime, such as trade finance. But for other use cases, this technology may become an over designed database – there are signs that Bitcoin will reach its limits of use, and that a more advanced digital network and currency etherfloor is also facing bottlenecks.n
nPeter Randall, chief executive of the former stock exchange, which runs a company called SETL.io, said the stock exchange is already very efficient, for example, the New York Stock Exchange is usually able to handle millions of transactions every day. In the credit card industry, Visa said it could handle 56,000 transactions per second.n
nPricewaterhouseCoopers, a department head of PricewaterhouseCoopers, said the momentary turmoil triggered by the chain chain could well reflect the dot-com bubble that occurred in the late 1990s and early 21st century, The company ended with bankruptcy, but there were still a few elite companies: about 90 percent of the so-called distributed categorized books were likely to fail, but there were still several companies that could change the financial sector.n
nRebecca CEO Brad Garlinghouse said the company’s cross-border payment business area is really using a block chain. However, he pointed out that the traditional database in some examples of the role of the classification of books than the better, and sometimes the block chain of speculation will make it difficult for him to work.n

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