The banking industry concern four important reasons to block chain technology

The banking industry concern four important reasons to block chain technology

Block chain (bottom technology bitcoin) is a magic box – through the existing solutions can be used again and given a lot of innovation, so that it becomes very revolutionary. In a technology, it’s rare to see so many innovative ideas are placed within a frame. Many people wonder why the world’s top banks and investors have invested $750 million (translator’s note: today has more than 1 billion U.S. dollars) in which.

The discussion in the blockchain why? Now let’s look at the characteristics of the most unusual chain blocks.

Self monitoring platform

We rarely see a platform to almost no human intervention in case of self – regulation. Similar to the financial industry in all areas, the central bank and regulatory agencies (such as the United States Securities and Exchange Commission) to develop uniform rules and management. The block chain technology makes the system is no longer required from the enterprise or government entity supervision, thereby regulating the operation of the system.

Block chain provides a feature called “proof of work” mechanism, let each computer node in the system involved in the approval of each transaction. The system with built-in check and balance mechanism, to ensure that any computer system cannot cheat system. The examination and supervision of all completely completed by computer. There have been many other consensus instead of “proof of work” mechanism model, but still retains the or each client node can point to the core concept of management system. More importantly, the block chain for each element in the system is completely transparent, so for a worldwide community of such a large scale, block chain technology can easily carry out the examination and management of it — “regulatory” source of mass, thereby reducing the fraud effectively. Imagine how much it can save cost and improve efficiency.

In accordance with the law and to facilitate tracking

The actors (users) and their behavior (money or assets to send to other people) are recorded in the block chain. Any transaction transactions are to be tracked and queries, and can be proved in court. This is because all transactions are to require a public / private key encryption and decryption processing and trading, once added to the block chain, it can not be changed permanently. Any records, once written to the block chain, is not tampered with. Any asset or digital currency in the block on the chain of people will have to block the chain have their own public key. When the transaction is required by the control of these assets before a holder with the private key signature. Block chain also allows various mechanisms to the transaction, for example, can be set to need two people to jointly signed a deal. In a business or government endorsement system, legally binding mechanism can greatly enhance the trust factor of the system.

The built-in business continuity

A global platform, in a big deal when downtime can not bear the risk. Block chain, a complete point-to-point network, there are many distributed nodes and computer servers to support, has a high reliability, nodes involved in every system on the preservation of a complete copy of the data block chain. This makes the whole network fault tolerance is high, if any part of a few nodes appear problem, will not affect other parts of the network continues to operate. This makes no use of technology in complex circumstances can be like disaster recovery center or database redundancy center, all-weather operation characteristics 24/7.

No burden of the evolutionary model

In the system, there are a series of rules and key points to help decide who has the right to trade and approval prior to writing blockchain in the transaction need to review what. Block chain technology can according to the different environment and business model needs to forking out the new version. The new version also need the whole idea with the blockchain, all of these changes must be obtained in any and all members of the system, and everyone can get the same benefits. In addition, these changes will not affect the confirmation and has occurred in the block on the chain of transactions. This is a system, has the robustness and flexibility of enough.

People often compare the similarity between the Internet and the blockchain, including their growth potential and business prospects. These two systems have very similar characteristics. The Internet do not need or not the center of the management department (except for a few for the agreed URL and domain name registration management), also has enough redundancy and strong fault tolerance. The Internet in so many years in development, from basic text to graphics, video, animation and rich all this does not affect the system and other existing content.

Block chain is already in the system of bitcoin has proved its function and practicability. As a famous philosopher Chinese Lao Tzu said, “he was born in a wood; nine layer, from the base soil; a journey of a thousand miles begins with a single step.” I think this should be all the blockchain technology early adopters creed.

From the new economic chain block

Leave a Reply

Your email address will not be published. Required fields are marked *