As the banking industry adjustments at a rapid pace, one term is actually being used with increasing frequency — blockchain.
Put simply, blockchain refers to a tamper-proof, distributed digital ledger which records transactions.
Instead of different parties involved in a transaction keeping their own records of which transaction — which could potentially differ along with also cause confusion — blockchain creates one “master” record. which cannot be changed once a transaction has been recorded.
As technology giant IBM notes: “All parties must give consensus before a completely new transaction is actually added to the network.”
Dirk Haubrich is actually head of consumer protection, financial innovation along with also payments at the European Banking Authority (EBA). He told CNBC: “We’ve looked at blockchain… in one particular use case, which was virtual currencies, four years ago.”
At which time, the EBA had a “rather negative view,” Haubrich explained. “yet there are lots of some other use cases which have been emerging since then, like trade finance along with also… clearing of payments.”
which was “quite interesting,” he added. “Many of the risks which we’ve identified at the time for virtual currencies probably don’t arise for those use cases yet we need to have a closer look, which we haven’t done yet.”
which could be argued which blockchain technology is actually still in its infancy, along with also which its potential is actually a long way by being fully realized.
PayPal’s Mark Brant told CNBC which blockchain would likely continue to evolve, “yet for which to become widely used there need to be scale use cases on either the consumer side or the merchant side or both.”
“We’ll continue to follow which along with also experiment with which along with also keep abreast of which, along with also continue to look to see whether there is actually a clear gap within the market which we can exploit with which,” Brant, who is actually managing director at PayPal U.K., added.
While blockchain technology offers completely new ways of carrying out transactions, some other innovations could help to boost the security of financial dealings.
One such development is actually the increasing use of biometrics in banking. Already, many of us use our fingerprints to unlock our smartphones, along with also there are a range of potential applications.
“There’s voice biometrics, there’s fingerprint biometrics, there’s iris biometrics, I think there’s going to be many more invented,” Niall Cameron, global head of corporate along with also institutional digital at HSBC, said.
Cameron went on to say which biometrics was probably one of the most important areas of completely new technology needed by the industry.
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