The technology behind Bitcoin will disrupt global banking

Sina US Stocks News: Beijing time on the afternoon of the 31st , Bitcoin has risen by more than 35% this year , but this is not important. What really excites major banks around the world is the technology behind Bitcoin.

This technology is called Blockchain , and has long been viewed by major institutions as a disruptive force in the financial sector, and Bitcoin is just the "prelude" to a major trend.

The blockchain is like a huge, decentralized ledger for Bitcoin, which records the transaction records of the entire Bitcoin network. This data is shared by all Bitcoin nodes, so it is impossible to tamper with it. Major banks feel that this technology can be used in a wide range of fields from remittances to securities trading.

Currently, a consortium of more than 25 banks led by financial technology company R3 is developing a framework for applying data blockchain technology to the market.

Below are some of the views expressed by some of the world’s largest banks this year on the potential of blockchain technology.

Goldman Sachs

In a December report, Goldman Sachs said the technology will "change everything." "I told you that Bitcoin is just a prelude, and blockchain technology is about to take center stage," the Goldman Sachs report said.

Goldman Sachs pointed out that data blockchain technology has a wide range of applications, including voting systems, motor vehicle registration, cable TV charges, gun registration, trade settlement, and ownership classification registration of artworks.

“Blockchain technology eliminates the need for middlemen, reducing risks such as hacking and corruption, and can speed up currently outdated and time-consuming processes,” Goldman Sachs said in the report.

JPMorgan

JPMorgan Chase has invested about $ 9 billion in the technology across the company this year and has made it a top priority.

In a letter to employees, Daniel Pinto, head of JPMorgan Chase's corporate and investment bank , said the company already has a full team to develop technologies such as blockchain and robotics .

Barclays

Barclays said in May that Bitcoin has created a "more elegant solution than the current payment system" in many ways, but it still "has shortcomings" in many areas. In the report, the bank expects that more virtual currencies will be launched in the future and can overcome the shortcomings of the first generation of Bitcoin.

UBS

UBS has been one of the most open banks to blockchain technology. The bank has set up a team called " Crypto 2.0 " in London to specialize in blockchain technology research.

UBS said it has developed more than 20 uses for blockchain technology and is incubating some of the best uses. One of the experiments is to develop a "smart bond" through so-called "smart contracts", including using blockchain technology to reconstruct the bond issuance, interest rate calculation, coupon payment and maturity process.

Deutsche Bank

In the October issue of Deutsche Bank’s Flow magazine , the bank said it had explored the potential of blockchain technology through an “innovation lab”.

Deutsche Bank pointed out that the application of blockchain technology will face "huge legal and regulatory obstacles", but admitted that it could have a huge disruptive effect on the current banking industry. ( Tony compiled)