This technology is performing operations to help financial institutions reduce costs as well as expedite and improve their transactions.
Blockchain is the technology behind bitcoin, which makes it possible to complete secure financial transactions without an intermediary.
Its advantages have led to its quick dissemination in a very short time. Now, blockchain wants to go a step further: achieve implementation as a single network. As a result, it will help financial institutions reduce costs and improve transactional processes.
The implementation of blockchain as a network will allow all players in the financial sector to operate with the same goal in mind and in compliance with the same rules. The network's usefulness will depend on the approval of the relevant parties.
However, since hundreds of companies are developing blockchain solutions, there is a danger that the technological applications fragment, and that the network effect does not actually materialize.
The provider of technology has taken a huge step toward overcoming this issue though: it has released the blockchain and made it open technology.
Main characteristics of this open standard:
- Authorization protocol that only allows specific parties to operate in a network.
- Speed and scalability: it is possible to process thousands of transactions in less than one second. Open protocols allow users to carry out transactions among themselves in anonymity.
- Privacy and transparency: the protocol requires that data be encoded. Also, transactions contain metadata that help fight against money laundering.
- All transactions are smart agreements that use logical rules to fill out all necessary information automatically. It's something like a complex version of a browser that auto-populates payment information in e-commerce. This characteristic reduces the processing load of transactions.