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August 24, 2018, 02:45:24 PM |
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The potential is very big in the field of transactions, basically the Blockchain will change the way of managing transactions (more efficient, faster, more secure and much cheaper!).. Today banks manage all transactions centrally but the disadvantage of a centralized system is that it requires heavy infrastructure and processes, controls at all levels so a big cost to maintain.
Now imagine that we reverse the model and that all these process of validation and storage of transactions are done automatically by the network itself. In the case of a payment, you'll initiate the transaction (via any channel such as payment card, web, smartphone) and at the time of the issuance of the payment request, all members of the payment network (we can imagine individuals, businesses, shops etc. through their devices or their representatives or third parties in a Cloud) will be responsible for verifying your transaction with the same controls as today, automated in the Blockchain algorithm... When your payment gets validated by consensus in the network, it will be added as a new block in this Blockchain from which each node in the network would receive a copy of the complete update. The role of the banks will no longer be to process the transaction by authorizing, validating it... and registering it in a database, it will be to develop and maintain a secure Blockchain algorithm that allows the whole network to operate over the whole transaction chain. That's why the potential is huge for banks.
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