The blockchain technology has become an international sensation; banks, financial institutions and research groups have been trying to exploit Bitcoin’s underlying technology to their advantage.
Contrarily, recent coverage of the blockchain technology indicated a declining trend of the technology, at least in the financial market. After all, it was moderately expected, granted that the banks and financial institutions have failed to demonstrate a practical usage and implementation of the technology on existing financial platforms and systems.
The shifting direction of the blockchain technology led to a massive emergence of blockchain startups focusing on a variety of products, which are proving to serve important functions in markets including the real estate and insurance industries.
For instance, immutability of the blockchain technology—which companies consider as the blockchain technology’s greatest asset—has demonstrated its use case in the insurance industry. Since a blockchain network is an incorporation of a protocol of distributed computers, it allows users to store data that is unalterable and irrefutable.
Still, financial institutions and multi-billion dollar banking groups aren’t planning give up on the blockchain technology anytime soon.
On July 29, leading international consulting and professional research company Ernst & Young, Deutsche Bank, Royal Bank of Canada, and American Banker hosted an event to discuss the practicality of the blockchain technology and its economic advantages.
Deutsche Bank and the Royal Bank of Canada, two banks that are part of the R3 Consortium, still seem to be dedicated in leveraging the blockchain technology to enhance banking performance and optimize settlement of bank transactions.
— Michael del Castillo (@DelRayMan) July 28, 2016
With a fully established blockchain research group and a team of engineers wholly devoted in studying the blockchain technology, the world’s major banks’ attempt in exploiting the blockchain technology is most probably contradicting their long term plans.