Trust for Blockchain technology is going up among bankers as they are becoming fan of the disruptive technology. The latest addition is Oliver Bussmann, CIO of Swiss Bank UBS. Answering to a question what technology has the potential to disrupt the financial services sector the most, he says Blockchain has all the features for it.
Financial services have been at the forefront recently and even technical companies like Apple, Facebook, Google, etc. have tried to offer their solutions for the sector. In his statement to media Oliver Bussmann admitted that the biggest disrupting force is the Blockchain as it is the underlying technology behind Bitcoin.
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According to him Bitcoin, the electronic-only currency that is created on computers and isn’t controlled by any government or centralized authority, is a huge success. Interestingly, the Blockchain is the open, decentralized online ledger which verifies transactions in the digital currency. It is emerging as a popular choice for those who advocate disruptive technology.
Coming from someone who is known for apt assessment, the observation from this German-born Bussmann who was appointed CIO of Swiss bank UBS in April the last year, has remarkable truth. Nonetheless, a Blockchain, a public ledger of all Bitcoin transactions that have ever been executed, is an interesting subject for a lot of bankers as well.
Blockchain is constantly growing as ‘completed’ blocks are added to it with a new set of recordings and the blocks are added to the Blockchain in a linear, chronological order wherein each node i.e. computer connected to the Bitcoin network using a client that performs the task of validating and relaying transactions gets a copy of the Blockchain.
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The copy of the Blockchain then gets downloaded automatically upon joining the Bitcoin network and the Blockchain completes information about the addresses and their balances right from the genesis block to the most recently completed block. The whole technology has intrigued many in banking sector and they have started seeing future in it.
Blockchain is slowly making its way into international financial debate as several bankers and banking agencies have shown their interests. In fact, even the Bank of England recognized the technology’s potential in a report in September wherein it described it as a “significant innovation” that could have “far-reaching implications.”
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