Banking Systems Have Started Enjoying The Benefits Of Blockchain

Most banking systems have started enjoying the benefits of blockchain in financing trade.

FINANCING TRADE-MEANINGFUL DECISION IN THE BANKING SYSTEM

Recently, seven European banks collaborated with IBM in creating a blockchain system to provide an efficient and effective trade financing for both medium and large scale businesses. This is a surefire way the banking industry can offer financing for all other business sections including the shippers and freight carriers to detect any fraudulent activities.

The Benefits Of Blockchain

BLOCKCHAIN – AN ESCAPE ROUTE FOR BANKING INDUSTRIES

As beautiful and effective as the blockchain system is, it is still usually faced with image problems. For instance, Bitcoin faces some forms of stigma resulting into cases of fraudulent activities, thefts, and unexplainable transactions, and the sudden disappearance of funds as we have in the case of the Mt. Gox incident.

One of the biggest potential uses of the blockchain is the iffy proposition for banks, financial institutions and other institutional investors. Since there is no standard government regulation coupled with the risk in crypocurrencies, this has made banks prone to losing a huge millions should any illegal transaction or unintentional situation in their financial transaction.

Regardless of this problem, cryptocurrency is emerging and expanding beyond every limit due to the explosive valuations and sky-high initial coin offerings. Recently, a single coin in Bitcoin reached $5,000, and there’s a noticeable price increase in Ethereum.

Hedge funds and institutional investors have become so difficult to believe in this fact although Blockchain could change this by, yet it demands an inventing thinking to achieve this possibility. Despite the blockchain transparent system, existing market makers have affected the blockchain to keep it murky.

BLOCKCHAIN – A SAFE DECISION FOR BANKS

Due to blockchain in the recent years, it has gained legitimacy in finance and a surefire way of keeping safe financial transactions by banking industries. To fully embrace the blockchain technology, there are numbers of questions to be answered by banks most especially on how the blockchain system can bring an unprecedented transparency and provide financial security.

When banks provide solutions to these questions, blockchain could revolutionize financial services with a more open future for banking industries and other financial institutions.

Husband, Father, Friend | Writer at TowardsDataScience and Hackernoon | Salih Sarikaya is a data &product & media professional with many years of experience | Top Tech Influencers of USA (CES2017-Onalytica) | Key Blockchain Influencer (Business Insider, DisruptorDaily, TokenTarget, KLOUT, MOZ) | Entrepreneur | Author | Pro Member of PEN America & SPJ | Computational Sociology MA

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