Evangelists of Blockchain are predicting that it will be the most disruptive invention since the internet. But even with Blockchain being among the top buzzwords over the last couple of years, there remain many misconceptions about this much-debated topic. This article sets out to de-mystify Blockchain and Distributed Ledger Technology, explore their benefits and the barriers to adoption and assess how they are likely to impact transaction banking over the coming 2-5 years.
Blockchain was originally developed to underpin the creation and exchange of cryptocurrencies, such as Bitcoin. But in the last few years Blockchain itself has created much excitement across many industries, given its potential to make transaction processing and record keeping faster, easier and more efficient. In recent times financial services and transaction banking have tended to separate Blockchain from cryptocurrencies, in an endeavour to focus on the potential of the underlying technology to automate processing and streamline onerous and time-consuming activities such as reconciliation.
We need to distinguish between Public Blockchain and Private Blockchain, the latter of which is more interesting for financial services.
White PaperOpen Banking: Changing the Way Businesses Pay and Get Paid
The way businesses and banks pay and get paid is changing. There has never been a period of such radical shift in the payments landscape. Many of these changes are driven by regulation, so businesses and banks will need to ensure they are compliant with the new rules and payment schemes. But these transformations will also bring many exciting opportunities to make payments easier, faster and more secure.
BrochureBottomline Universal Aggregator
Bottomline Universal Aggregator offers banks, financial institutions and corporates a competitive advantage from their payments network connectivity, lowering operational costs, ensuring compliance and delivering enhanced risk mitigation. Download our global payments api guide to get started.
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