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Blockchain Use Cases In Banking

Practical Examples Of How Blockchains Are Used In Banking And The Financial Services Sector

Practical Examples Of How Blockchains Are Used In Banking And The Financial Services Sector

Practical Examples Of How Blockchains Are Used In Banking And The Financial Services Sector Opinions expressed by Forbes Contributors are their own. While there are still several hurdles to overcome before blockchain transforms finance and banking as we know it, the potential cost and labor savings it could create for the global financial market are so appealing that many major financial institutions are investing millions in resources to research how best to implement it. I believe blockchain is a technological advance that will have wide-reaching implications that will not just transform financial services but many other businesses and industries. Billions of individuals and businesses are served and trillions of dollars are moved around the antiquated global financial system each day. Still heavily reliant on paper, albeit dressed up with a digital faade, there are many issues with this system that cause added expense and delays as well as make it easier for crime and fraud to cripple it. Despite the financial industrys resistance to change, blockchain and its expected benefits make it worthwhile. Many of you may be familiar with Bitcoin, a type of digital currency that operates independently from a central bank, but the tech behind that system most people are not familiar with is blockchain. There are many different blockchainspublic and privateand they allow anyone to send value anywhere in the world where the blockchain file can be accessed. Think of each chain as an online database stored in a distributed, peer-to-peer fashion. The storage devices for the database are not all connected to a common processor and each blockordered recordshas a timestamp and a link to a previous block. Cryptography ensures that users can only edit the parts of the blockchain that t Continue reading >>

Blockchain Use Cases In Banking And Finance

Blockchain Use Cases In Banking And Finance

Blockchain Use Cases in Banking and Finance Image courtesy of Sira Anamwong at FreeDigitalPhotos.net Banking majors are looking at Blockchain disruption, both as a massive opportunity and as a massive change. Here are some interesting use cases of block chain in banking. From ICICI bank to Nasdaq, many legacy and digital entities in the banking and financial world are now embracing Blockchains, albeit, on an experimental pace. The technology can bring a lot of changes when applied, especially to existing ways and infrastructure in the BFSI space. Every bank or entity is gauging and testing this disruptive technology with different goals and context. Heres how some global as well as Indian banks are experimenting with Blockchain technology. ___________________________________________________________________________________________________________ Not all banks which are trying Blockchains are going full-throttle. Many prefer ahybrid blockchain system, where a tiered blockchain network or a combination of both public and private blockchains is injected, which apparently reduces the impact and overwhelming scale of change that this concept usually spurs. Many banks are exploring Blockchain without fully replacing their existing systems. The formats and deployments are also diverse and full of new possibilities that only add, and not weaken, whats already there. Here are some examples of Blockchain experiments happening globally: Bank of America Files 20+ Blockchain patents: In August 2017,Bank of America came up with new patents strengthening its roster of now-20 blockchain and cryptocurrency-related patent applications. The bank has been busy doing so since 2014 and has covered areas likeexchange and payment process, including real-time conversion, transaction validation Continue reading >>

The Five Major Use Cases For Financial Blockchains

The Five Major Use Cases For Financial Blockchains

The five major use cases for financial blockchains Flying back from Oslo after the SWIFT Nordics Conference, I was reflecting on the blockchain discussion we had. Quel avenir pour la blockchain Ethereum ? I chaired the discussion which was titled: Blockchain: from hype to real world applications and was joined by Vytautas Karalevicius from Spectro Finance, Lasse Meholm of Nordea and Colin Kwan from Magnr. It is clear that there are a number of major areas for applying the blockchain technologies emerging but, right now, it seems to me there are five big ones. This is the biggest area where we are seeing transformation, with some seeing this as more revolutionary for the legal industry than banking or other areas. This is because law is being digitalised. Right now, look at any legal structure and theres a raft of paperwork involved. Thats good for the solicitors, barristers and litigators as keeping track of their paper trails is half the cost of any exchange, but if we digitise all those contractual instruments, then everything changes. This is what firms like Stampery are focused upon being the digital notary of choice because you can record something on a shared ledger and, once recorded, it is irrefutable digital proof that this thing happened at that time on this date between these counterparties. This could be anything from a marriage vow to a divorce proceeding; a house sale to a land reclamation; a purchase of a diamond to an insurance claim for the loss of a diamond; and anything else that involves digital proof. Provenance is the killer app for blockchain protocol and it is why companies like Everledger are winning all the plaudits, as early examples of how compelling digital proof though smart contracts can be. After all, if it can wipe out half the costs an Continue reading >>

Five Ways Banks Are Using Blockchain

Five Ways Banks Are Using Blockchain

Clearing and settlement, trade finance and syndicated loans are ripe for modernising What was mispronounced? Optional: help us by adding the time Give us your feedback Thank you for your feedback. Barely a day goes by without a fresh announcement about how banks are seeking to use blockchain technology to transform sizeable chunks of their business. Combining shared databases and cryptography, blockchain technology allows multiple parties to have simultaneous access to a constantly updated digital ledger that cannot be altered. The technology, which underpins cryptocurrencies such as bitcoin, was initially treated with scepticism by banks. However, this has changed dramatically. Blockchain isthe hottest buzzword in the sector, even if the recent flurry of cryptocurrency fundraisings via "initial coin offerings"is attracting intense regulatory scrutiny . Blockchain firms raised more than $240m of venture capital money in the first six months of2017, much of it from banks, including $107m raised by R3, the New York firm owned by 40 of the world's biggest lenders. That follows an almost doubling of venture capital investment in blockchain firms last year to $367m, according to KPMG's Pulse of Fintech Q2 report. Many of the new ventures by banks involve them setting up a consortium of like-minded companies or carrying out a "proof of concept" to test the potential of the new technology. In almost all cases there islittle to show in terms ofcommercialsignificance. So which the areas of bankingstand a serious chance of being transformed by blockchain? The Financial Times has spoken to almost a dozen bankers, consultants and analysts to come up with five areas of the industrymost likely to see aneffect. It is not the sexiest area of banking, but the tangled webthat records lo Continue reading >>

Asian Banks Outline Blockchain Use Cases

Asian Banks Outline Blockchain Use Cases

Financial institutions are eager to identify the commercial opportunity that blockchain technology can offer their business and ways it can help reduce costs, improve reporting, reduce fraud and enhance security and visibility. The Blockchain for Finance Conference, Asia-Pacific (June 20-21, Singapore) will evaluate the latest use cases and POCs to help you assess the viability of adopting distributed ledger technology. Highlights include: Bank of Tokyo-Mitsubishi UFJ, China Construction Bank, Mizuho and OCBC Bank will set out their blockchain strategies helping you to understand the capability of this technology. The Monetary Authority of Singapore will review the Intellectual Property challenge and how the recent influx of patent filings may impact the wider financial services sector. Tackle the unknowns and business challenges associated with blockchain adoption with input from R3 to ensure all trepidations with this technology are properly addressed. Hear how Manulife, Allianz, MelLife and AIA see blockchain playing a vital role in optimizing current processes in insurance and how a decentralized approach could help improve security and trust. Plus, hear from FinTechs including Viewfin Metaverse, DXMarkets, JEDTrade, Gatecoin, Streami, Bluzelle and Keychain to improve your blockchain adoption strategy. Review the conference brochure now at: If you have any questions about the conference or would like to discuss participating, please do not hesitate to get in touch . Continue reading >>

Benefits And Use Cases For Blockchain In Banking

Benefits And Use Cases For Blockchain In Banking

Benefits and use cases for blockchain in banking Blockchain, while still relatively new to the financial space, is seeing interest from around 90% of banking sector executives, according to a new study on the potential of the technology in the industry. 40% of banks find themselves still at the exploration phase, while around 30% are pursuing proof of concepts. Intra-bank cross-border transactions are regarded as the most likely payment system to see blockchain implementation, followed by cross-border remittance and corporate payments. Developments in the FinTech space an industry which received $19 billion in venture capital last year are touted to radically transform the face of financial services, from payment systems and clearing to financial settlements. One of the technologies which has received considerable hype in recent years is blockchain, a distributed ledger technology (DLT) that serves as the backbone of cryptocurrencies such as bitcoin. The technology remains in its formative stages; however, consultancy firms, such as Accenture, proclaim that the technology will come to revolutionize aspects of the financial services industry. In a new study from Accenture, titled How Banks are Building a Real-Time Global Payment Network, the consulting firm asked commercial banking professionals across the US, Canada and Europe, about the impact they believe blockchain will have on their operating models and operations. Of the respondents, nine out of ten said that their institution is currently exploring the use of blockchain/distributed ledger technology in payments largely because of the myriad compelling benefits blockchain offers. 40% of respondents note however, that, while interest is apparent within their organization, they are currently in a strategy forming or Continue reading >>

What Are The Most Interesting Use Cases Of Blockchain For The Banking Industry?

What Are The Most Interesting Use Cases Of Blockchain For The Banking Industry?

I think permissioned blockchains where a suite of stakeholders track and compute their OTC deals will find large adoption. The digitization of financial instruments is currently hindered by: Incompatibility of internal legacy systems Ideally, permissioned blockchains tackle the last two by allowing: Easy auditing through a cryptographically verifiable chain of logs Tailoring instruments is a matter of writing code A shared ledger that is updated in realtime and high flexibility would make OTC deals scalable. Apparently there are overlaps of compatibility with other transactional systems like SWIFT ( Swift Payments CEO Doesn't See Block Chain Replacing Current 'Efficient' Banking Systems ): "private blockchains are far more of a threat". In this light, projects like those of UBS might become more understandable ( UBS to Develop Yet Another Permissioned Blockchain for Banks ). Companies that are on track doing so are for example Eris Industries and HitFin . I'd also suggest to skim the most interesting talks from the last DEVCON1 . Certainly, fully open processes through a public blockchain with contracts (i.e. Ethereum) is not yet there in terms of scalability, obfuscated computation (i.e. inference of identity by aggregating anonymized data impossible) and acceptance as evidence in courts. Answered Nov 20, 2015 Author has 76 answers and 110k answer views As Stu said, pretty much all of the investment banks are looking at private blockchain projects for clearing and settlement of a wide range of instruments. Whether or not that's interesting depends very much on your point of view. It's not interesting in the sense it will change the world we live in, as all it really does is help the banks reduce costs and achieve regulatory compliance. What I do find interesting is th Continue reading >>

What Are The Applications And Use Cases Of Blockchains?

What Are The Applications And Use Cases Of Blockchains?

What Are the Applications and Use Cases of Blockchains? Blockchain technology is a revolution in systems of record. Bitcoin is historys first permanent, decentralized, global, trustless ledger of records. Since its invention, entrepreneurs in industries around the world have come to understand the implications of this development. The nature of blockchain technology has got imaginations running wild, because the idea can now be applied to any need for a trustworthy record. It is also putting the full power of cryptography in the hands of individuals, stoppingdigital relationships from requiring a transaction authority for what are considered pull transactions. For sure, there is also a lot of hype. This hype is perhaps the result of how easy it is to dream up a high-level use case for the application of blockchain technology. It has been described as magic beans by several of the industrys brightest minds. There is more on how to test whether blockchain technology is appropriate for a use case or not in ourguide "Why Use a Blockchain?" . For now, we turn to a discussion of the development of blockchain technology for how it could be useful. Cryptographic keys in the hands of individuals allow for new ownership rights and a basis to form interesting digital relationships. As weve discussed in our guides "What is Blockchain Technology?" , "How Does Blockchain Technology Work?" and "What Can a Blockchain Do?" , blockchains provide an opportunity to establish a strong system for digital identity. Because it is not based on accounts and permissions associated with accounts, because it is a push transaction, and because ownership of private keys is ownership of the digital asset, this places a new and secure way to manage identity in the digital world that avoids exposing us Continue reading >>

Are Finance And Banking The End Of Blockchain Uses?

Are Finance And Banking The End Of Blockchain Uses?

Are finance and banking the end of Blockchain uses? Blockchain offers an alternative to a trusted intermediary in case of contract signing, money transfer and payments leading to significant saving in time and money. It is a form of database build on the concept of distributed ledger which records the transactions in chronological fashion. Applications of Blockchain in finance and banking In the last blog What is blockchain and understand its key benefits we mentioned some of the noteworthy examples of blockchain in finance and banking sector. It solves the expensive and insecure financial transaction systems by introducing new forms of digital interactions using the concept of distributed ledger. Below are some of the applications in finance and banking sector: The most prevalent use case of blockchain is the transfer of virtual currency bitcoin. It reduces the risk of inflation or collapse of currency as it is detached from country or institution. Money transfer using blockchain requires neither fees nor need of transaction verification by a central authority. R3 in association with worlds largest banks is developing a bank-to-bank global transaction system with help of Microsofts Azure-based Blockchain-as-a-Service. P2P lending does not rely on a central authority (financial institution) and allows the borrower to define their own amount, interest rates and other parameters. Thus it becomes perfect use case for blockchain due to its ability to create public decentralized ledgers. A peer-to-peer system build using blockchain creates parity between lender and borrower and makes it easy to compare rates of return. There is a minimum cost for every transaction done using fiat currencies. Due to associated costs, small payments for goods and services are often expensive. Continue reading >>

Blockchain Technology Applications & Use Cases - Business Insider

Blockchain Technology Applications & Use Cases - Business Insider

As Bitcoin and other cryptocurrencies have been on fire for a large portion of 2017, focus has turned to blockchain, the underlying technology that powers these digital currencies. But blockchain technology has many more potential use cases and applications other than just serving as the fuel behind Bitcoin. Below, BI Intelligence, Business Insider's premium research service, has outlined those applications across finance, business, government, and other industries. Blockchain Use Cases in Banking & Finance Blockchain technology is simple to understand at its roots. Basically, the tech exists as a shared database filled with entries that must be confirmed and encrypted.It's helpful to envision it as a stronglyencrypted and verified shared Google Document, in which each entry in the sheet depends on a logical relationship to all its predecessors. Blockchainprovides a way tosecurely and efficiently create a tamper-prooflog of sensitive activity. This makes it excellent for international payments and money transfers.Julio Faura, Banco Santander's head of R&D and innovation, told BI Intelligence that the bank isparticularly interested in the potential of the technology in thepayments space. That's because as a large commercial bank, Santander has numerous retailclients who would benefit from more efficient and cheaper payments, particularly in the area of international transfers. Blockchain technology can be used to decrease the cost of these transfers by reducing the need for banks to manually settle transactions. And while that's something Santander isn't able to deliver using existing payment rails, it could potentially do so using ablockchain-based system, according to Faura. Banco Santander also sees potential for blockchain-based systems to improve capital markets, b Continue reading >>

5 Blockchain Use Cases In Financial Services

5 Blockchain Use Cases In Financial Services

5 blockchain use cases in financial services One of the most discussed topics in the financial services industry today is blockchain technology. We are beginning to understand what a blockchain is, but how can we best use this technology within our business? In this series we describe 5 blockchain use cases, such as smart contracts, identity management and share trading. We hope they will enhance your understanding of the opportunities and challenges of this technology, and we welcome your feedback and further discussion. Most parties in the financial sector already have a grasp of concepts such as bitcoins and other cryptocurrencies. These concepts work on the blockchain technology, which is a digital, distributed transaction ledger with identical copies maintained on each of the networks members computers. All parties can review previous entries and record new ones. Transactions are grouped in blocks, recorded one after the other in a chain of blocks (the blockchain). The links between blocks and their content are protected by cryptography, so previous transactions cannot be destroyed or forged. This means that the ledger and the transaction network are trusted without a central authority a middleman. #1. Blockchain speeding up and simplifying cross-border payments The transfer of value has always been an expensive and slow process. This is particularly true for cross-border payments. The blockchain is able to speed up and simplify this process - and also reduces the costs significantly. #2. Blockchain the future of share trading Share trading will soon be impacted by the blockchain. Utilizing blockchain technology allows for greater trade accuracy, and a shorter settlement process. #3. Blockchain the benefits of smart contracts One of the most promising applications Continue reading >>

Know More About Blockchain: Overview, Technology, Application Areas And Use Cases

Know More About Blockchain: Overview, Technology, Application Areas And Use Cases

Know more about Blockchain: Overview, Technology, Application Areas and Use Cases Blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole. Bob Greifeld, Chief Executive of NASDAQ In financial markets theres always a mechanism to correct an attack. In a blockchain there is no mechanism to correct it people have to accept it.- Robert Sams, founder and chief executive of London-based Clearmatics. Blockchain technology has the ability to optimize the global infrastructure to deal with global issues in this space much more efficiently than current systems. Marwan Forzley, Founder of Align Commerce Everyone is talking about blockchain, the new technology in the FinTech Industry. The concept of blockchain has energized the financial services industry globally. The concept has already brought a disruption in the financial industry. LTP brings to you the overview, technology, application areas and use cases of blockchain. A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the current part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. Blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block. To use conventional banking as an analogy, the blockchain is like a full history of banking transactions. Bitcoin transactions are entered chronologically in a blockchain just the way bank transactions are. Meanwhile, blocks, are like individual bank statements. The full copy of the blockchain has records of every bitcoin transaction ev Continue reading >>

Blockchain Use Cases

Blockchain Use Cases

Learn how others are leveraging the world's most advanced expertise, technology and ecosystem to transform industries and evolve your own blockchain idea today. Applying blockchain to customs declarations Blockchain for electronics: taming complexity with better supply chain visibility Blockchain for the banking industry with CLS Group Blockchain transforms supply chain networks in chemicals and petroleum industry Blockchain, the next disruptor for finance Building a digital identity ecosystem on blockchain Building a multinational insurance policy using blockchain Distributed ledger technology and guarantees for commercial property leasing Energy-blockchain labs and IBM create carbon credit management platform Person and owner-mediated health data exchange FDA partners with blockchain for secure exchange of healthcare data Healthcare payments reimagined with blockchain How Mizuho bank leverages blockchain for trade finance IBM Blockchain and SAP IoT solution for the pharmaceutical cold chain Supply chain, asset registration, identity services, fraud prevention and compliance Clinical trial management, outcome-based contracts, patient consent and health data exchange Continue reading >>

Four Key Blockchain Use Cases For Banks: Fintech Network Report

Four Key Blockchain Use Cases For Banks: Fintech Network Report

Four Key Blockchain Use Cases for Banks: FinTech Network Report April 03, 2017, 01:35:51 PM EDT By Alex Lielacher, Bitcoin Magazine The U.K.-based FinTech Network published a whitepaper in cooperation with BNY Mellon and Rabobank, outlining four use cases for blockchain technology in banking. The whitepaper highlights reduction of fraud,Know Your Customer (KYC) procedures, trading platforms and payments as four key blockchain use cases for banks. Blockchain technology is widely considered to be a disruptive force in the financial services industry as it allows for the secure recording, storing and transferring of data, which makes it an ideal technology to make operational processes safer and more efficient. According to Chris Mager, Head of Global Innovation at BNY Mellon Treasury Services , one of the primary issues that the banking sector is facing today is the increase in fraud and cyber-attacks. Currently, the majority of banking systems are built on a centralized database, which makes them more susceptible to cyber-attacks as all information is stored locally in one place. Also, many banking systems are outdated and are, therefore, more vulnerable to new forms of cyber-attacks. By building new banking systems on top of blockchain technology, the chance for fraud and data theft can be reduced substantially as the distributed ledger technology secures records; it stores, encrypts and verifies every single bit of data in a transaction. Therefore, should any data breach or fraudulent activity occur, it would be made immediately obvious to all parties who have permission to access the transaction data on the ledger. Compliance and KYC procedures have become increasingly important in the banking industry as regulators are keeping a very close eye on who banks are doing Continue reading >>

Moody's New Report Identifies 25 Top Blockchain Use Cases, From A List Of 120

Moody's New Report Identifies 25 Top Blockchain Use Cases, From A List Of 120

Moody's new report identifies 25 top blockchain use cases, from a list of 120 Luke Parker , 23 Jul 2016 - Adoption , Blockchain , Report Moody's Investors Service (MIS) recently released a detailed report that names 120 blockchain projects being explored by various companies. The bond credit rating business then offers 25 top use cases for blockchain technology. The report, Credit Strategy -- Blockchain Technology: Robust, Cost-effective Applications Key to Unlocking Blockchain's Potential Credit Benefits , explores how blockchain tech potentially can improve record-keeping and transactional efficiencies across many different processes and industries. A prime example is capital markets, where the technology could be used to eliminate the need for reconciling separate ledgers, synchronizing all transactions into one blockchain. The report also states that widespread adoption is still not here. Moodys Corporation (NYSE: MCO) is the parent company of MIS. Moodys opearates in two reportable segments: MIS and Moodys Analytics (MA). While MIS publishes credit ratings on debt obligations, and the entities that issue them, MA develops a wide range of products and services that support financial analysis and risk management activities. With a presence in 36 countries and approximately 10,800 employees, the corporation reported revenue of $3.48 billion in 2015. Global MIS revenue was $2.33 billion, representing 67% of Moodys total revenue. MIS authors thousands of pages of research each year. The firm's ratings and analysis cover more than 120 countries, approximately 11,000 corporate issuers, 20,000 public finance issuers, and 68,000 structured finance obligations, according to the 2015 annual report . The company reported that Moodys research website was accessed by over 259,0 Continue reading >>

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