The fact Blockchain, which has entered our lives with bitcoin, has been heard more often lately and we want to dig the answer of the question: What is Blockchain? The popularity of Bitcoin as a financial value causes Blockchain to remain in the background, but now the situation is changing.
What is Blockchain?
We can define Blockchain as a distributed database that provides briefly an encrypted transaction set-up. Blockchain technology, constructed from a chain model, which can be understood from its name, is traceable but not breakable, allowing to operate without being connected to a center. Thus, transactions can be carried out directly between the buyer and the seller safely.
It’s a fact that the blockchain technology is opposed to the existing systems because it removed the intermediary institutions. Today, however, different players, including banks, are beginning to explore and use Blockchain for transactions such as e-commerce, file sharing and communications.
By using Blockchain technology banks will save $15-20 billion USD!
Today’s traditional banking system, whose revenue is threatened by financial technology entrepreneurs, is on the path to benefit from Blockchain. By 2022, it is predicted that if banks use Blockchain, they can reduce their costs by 15-20 billion dollars.
A brief summary; The Dutch banks (ABN Amro, ING, Rabobank) have interested in Blockchain at the end of 2014, while NASDAQ has used Blockchain in May for use on the private market platform.
While Microsoft is approaching Blockchain for social benefit in the past summer, Deutsche Bank and Goldman Sachs have made significant statements recently that shed light on the future of Blockchain.
Who will benefit from the spread of Blockchain?
In short, it is clear that Blockchain is one of the major technologies that must be pursued in the coming period. Financial institutions are using Blockchain technology in terms of security and systemic savings.
But it is a big question whether this will strengthen Blockchain-based opposition systems like Bitcoin. It seems reasonable and possible for States to use Blockchain in their various citizenship services like collecting taxes etc.