While Bitcoin is not replacing currencies in the world anytime soon, you should know that the digital currency is relevant to your business. Its underlying technology – blockchain – could challenge our assumptions about the security and reliability of commerce. In fact, many leading financial personalities believe it could transform the business world in the next decades. If you do not want to end up like other companies, which failed to recognize the importance of the Internet, you might want to reconsider.
The financial industry has started to explore the blockchain’s potential. The investments company, BNY Mellon, is testing the technology internally to determine if it can be used to motivate employees. UBS is also attempting to build a secure, reliable, scalable and efficient blockchain solution. The company believes that the technology can improve the client experience ultimately.
The blockchain makes cryptocurrency legit for financial services, making it wise for the investment community to look over the developments in the cryptocurrency space. In the past twenty years, banks have reduced settlement of bonds, stocks and assets. Since communications and vetting can occur in two to five days, the time lag can increase financial risks. Through the Bitcoin technology, they can complete transactions in record time.
By using blockchain as a ledger, financial service entities can track and use smart contracts to verify business agreements and relationships while circumventing the legal system. Tying smart documents to a blockchain would provide the functionality of Rosettanet and other electronic data interchange (EDI) platforms at a much lower cost. Since the underlying technology is effectively free, related technologies could be used to manage and authenticate transactions.
You may think that Bitcoin is a risky investment, but the blockchain makes it worth trying for. The revolutionary technology can actually disrupt the financial sector. Since the financial industry is built on ledgers, it is a challenge for the industry to guarantee and track assets from one ledger to another. As a digital ledger, blockchain will impact the way the industry conducts business. Distributed across millions of computers, it records all transactions with little or no cost.