It doesn’t feel like a revolutionary moment. A member of a small team from the Swiss bank UBS, holed up on the 42nd floor of London’s Canary Wharf, taps a screen and a bond is sold by a company called ABC to an investor called XYZ.
It is the type of transaction executed millions of times a day by banks globally but this dummy transfer is different. It was completed via an internal blockchain, theshared database technology that gained notoriety as the platform for the crypto currency bitcoin. Banks are now racing to harness the power of the blockchain technology, in a belief that it could cut up to $20bn off costs and transform the way the industry works.
Sourced through Scoop.it from: www.ft.com
Published in the Financial Times. it still has a long way to go before it can prove itself in the world of finance. For instance, it is not yet clear that the technology can be scaled up in an efficient enough way to meet the challenge.