Blockchain in Financial Sector:
The blockchain is being the guideline for many debates and evaluations
The blockchain can be defined as a digital system of nodes that operate in parallel and allow self-certification and information exchange. Technically it is a process of adding cryptographically signed blocks of data to form perpetual and immutable records. That is, it is a node system that allows online transactions without the need for an intermediary, as it controls itself. This system is based on parallel and simultaneous information processing, being extremely secure. The data of the transactions after being registered cannot be falsified or erased, and they are stored in a history that contains all the operations since their creation.
Blockchain concept emerged to support the protocol of Bitcoin , but no longer limited to the monetary sector .
The blockchain goes beyond the application to currencies, such as bitcoin, since it allows to register any type of financial transaction , which can be bonds, shares, transfer of property and any type of right or obligation.
This impacts the financial sector, generating new business opportunities.
The great challenge for companies is to adapt to this new scenario, with agility, but with great security, which is the key point of the sector.
Some relevant numbers of what the blockchain has achieved so far:
- $ 921 million dollars invested in bitcoin and blockchain companies
805 bitcoin and blockchain companies identified ( here you can see some of them)
- More than 30 banks and financial institutions have publicly announced that they are researching and / or investing in blockchain technologies ( here you can see some of them)
106 thousand merchants that accept blockchain
In this image you can get an idea of the ecosystem that is around the blockchain and its main actors:
The blockchain can and should be seen as a strategic ally and not as a competitor to financial companies.
"This technology will not make banks disappear, but will allow them to explore new niches and market areas," says Antonio García-Lozano, consulting leader at Grant Thornton, in an interview with Expansión .
According to this report, the Santander bank estimates that the use of blockchain development can mean a saving of 20,000 million dollars for the financial sector by 2022.
To finish, the study Blockchain in Capital Markets, points out that the next steps and challenges for blockchain are:
1.Developing concrete proofs of concept
2.Challenge service providers to innovate
3.Understand the current quantification of operating costs
4.Maintain the commitment of the entire industry
5.Participate in prototypes and embrace "learning by doing"
6.Bringing the business mindset for tech startups
7.Prepare the narrative of the regulatory and supervisory bodies
8.At Private Investments Network we believe that blockchain brings opportunities to explore new markets. We act as a RegTech and we are dedicated to allowing unlisted companies to adapt to new technologies such as blockchain by supporting them so that they can also stay within compliance parameters .