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Blockchain technology threatens traditional banking?

Xteamx / Blogs  / Blockchain technology threatens traditional banking?
1 Feb

Blockchain technology threatens traditional banking?

The statement was made at the Blockchain 2018 conference organized by Vietstock and FundYourselfNow. According to Liu Yusho, president and consultant of Vinaex.com, Blockchain technology creates reliable transactions, electronic records systems, more accurate identification, automation and then related use. To the smart contract, create a compact platform in clearing.

According to Liu Yusho, Blockchain technology records all traces of the transaction and can not be reversed. Therefore, anyone can not change once the transaction has taken place. Data of this technology is stored simultaneously on tens of thousands of computers of operators worldwide. Should the possibility of data loss is almost none.

Blockchain technology is considered to be the future of the banking industry.

In the payment system, Blockchain provides instant and instant transfer without any intermediaries. So, there will be many people looking to Blockchain technology for payment.

Liu Yusho quotes some popular virtual currency, based on the Blockchain platform. Ripples, for example, use blockchain block-chain algorithms to address financial transactions between the seven largest banks in the world.

Or like Stellar, which organizations in developing countries use. Stellar is a platform that was launched in 2014, positioned as the “future of the banking industry” with the goal of providing instant, secure, low-cost banking.

Blockchain is a technology that stores and transmits information by interconnected blocks and expands over time. Each block contains information on initialization time and is associated with the previous block.

This technology is designed to withstand data changes that are highly secure. Attacks on the centralized data system of financial institutions such as banks, corporations, etc. will be very difficult because in order to get information in a particular block, hackers will have to attack millions of machines. in the network at the same time.

Nguyen Duc Cuong, Director of Vietstock Consulting, said that this technology is considered as the foundation of the fourth wave of technology revolution in the world and opens up new trends in many fields, from finance, banking, retail, transportation, manufacturing to telecommunications.

In addition, over time, Blockchain technology is world-wide, in which the most popular is the application of virtual currency (digital money), most notably Bitcoin.

Liu Yusho, chairman and consultant of Vinaex.com, said that a few years ago, the virtual currency market capitalized at just under $ 2 billion, with Bitcoin dominating the virtual currency market. about 80-90% of the market; At present, the market capitalization of this market has reached $ 600 billion with nearly 1,500 virtual currency and Bitcoin is currently dominant less than 35%.

Vietnam has taken the world trend very quickly in this modern field. Specifically, Bitcoin and some other virtual currency related keywords have reached the top of Google search in Vietnam in 2017.

However, according to experts, the technology itself has many problems that the judiciary must pay attention and seek solutions. Because Blockchain is highly private, illegal transactions are likely to arise, causing political instability.

“Therefore, although the trend is irresistible, it is important to know better before applying Blockchain to the bank properly,” one expert said.

Source: http://congnghe.vn

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