The Strategist

40 Largest Banks Tested Bitcoin Technology


03/04/2016 - 15:44



R3 Consortium introduced an unprecedentedly ambitious experiment. Forty world-leading banks have tested a system for operations with bonds based on blockchain technology.



pixabay.com
pixabay.com
R3 Consortium introduced an unprecedentedly ambitious experiment. Forty world-leading banks have tested a system for operations with bonds based on blockchain technology.
 
Providers of five technologies that have been tested in the course of the experiment were Ethereum, Chain, Eris Industries, IBM and Intel.
 
Consortium R3, trying to bring blockchain technologies in the sphere of finance, said on Thursday that the experiment was to test redemption of short-term commercial paper with the help of five different blockchain technologies.
 
R3 stated that the test provided the same conditions for each of the five technologies, so the study participants could choose the best technology for themselves.
 
The experiment was attended by eleven members of the consortium.
 
A report on the experiment states:
 
"During the process, we were able to significantly expand the number of international financial institutions involved in the process, as well as to raise the bar of distributed registry technologies, exploring how new technology can be applied to the global markets."
 
 The general director of the consortium R3 David Rutter said:
 
"Such developments once again confirms R3’s confidence in that the close cooperation between international financial institutions and technology providers becomes tangible point in the decision-making within the industry. The technology is a new ledge of innovation, which allows significantly improving work of the financial services industry. In many respects, it is similar to creation of e-commerce, provided new effective opportunities, transparency and security of transactions. "
 
 Blockchain technology was developed within the project of creating Bitcoin cryptocurrency as a mean to allow working directly, without involvement of central banks.
 
The technology works based on sophisticated cryptography enabling to carry out transactions without intermediaries traditional for such operations. Operations are divided between multiple servers and should be checked by each other.
 
blockchain implies that acting directly, without intermediaries makes the entire process shorter. This in turn will help save costs. Thus, according to Santander’s estimates, the technology will help banks to save about $ 20 billion.
 
R3 Consortium is leading the way in the introduction of technology throughout the financial services industry, particularly with regard to banks.
 
Created last year, the former CEO of ICAP Electronic and veteran of Wall Street, 32-year-old David Rutter from R3 has already got 42 world-leading banks to collaborate on blockchain experiments. Among the participants are banks such as Barclays, Santander, Bank of America, Citi, Credit Suisse, JPMorgan, Goldman Sachs, Morgan Stanley and HSBC.

source: forbes.com




More
< >

Thursday, June 6th 2019 - 11:57 Amazon presents new delivery UAV

Tuesday, June 4th 2019 - 12:31 Apple reveals Dark Mode for iOS