In its initial stages blockchain acted as a supporting framework for Bitcoin, the first successful implementation of a decentralized cryptocurrency.
Financial Services BCDB case study
As such, it can be determined that the technology was purposely tailored to answer the needs of the financial services industry.
Trust is a fundamental value that is deeply rooted in financial operations, regardless of the type of interactions and the actors involved. Whether we are analyzing B2B, or B2C, transactions or the relation between banks and other external parties, trust acts as the liaison which facilitates the whole financial mechanism. As a technology that guarantees trust between untrusted parties through complex mathematics, blockchain emerges as a key disruptor in the financial services sphere.
Tech industry giant IBM has concluded after extensive research that its blockchain technology is past its pen-and-paper stage and is ready to make a real impact on the realm of financial services.
To demonstrate the capability of blockchain, IBM underlined the impact of its blockchain platform, Hyperledger Fabric through a financial services BCDB case study.
IBM points out that Hyperledger Fabric can have a meaningful impact on clearing and settlement operations, helping the world’s largest banks save billions by enabling real-time, point-to-point transactions that reduce the duration of settlements from days to minutes.
Financial institutions regularly make use of multiple systems to manage customer identification, a process that adds another layer of complexity for both employees and customers.
If used properly, IBM underlines that blockchain can increase security by storing identification documents in a tamper-resistant environment which reduces the accumulation of redundant data like duplicate information, while streamlining efficiency and customer satisfaction. Blockchain can act as the foundation of an improved cross-border payments platform. Hyperledger Fabric can open a new window of opportunities by giving access to previously restricted markets and capital. IBM concludes that its blockchain platform can disrupt the tracking and management of securities.
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