There has been a trend in the technological development of things (ToT) which have been fluctuating in terms of relevance since 2015: the blockchain. Mainly associated with cryptocurrencies and their latest wave of investment-related platforms, the blockchain has attacked and “contaminated” many different business sectors, and the banking realm wasn’t an exception. With this in mind, a proper application for what concerns the subject is definitely not at the right stage at the moment, but, given the fact that many banking enterprises are actively invested in the topic, a thorough analysis of the matter will definitely resolve every question regarding “blockchain applications within the banking realm and finance in general”.
It’s An Architectural Matter
The blockchain isn’t a front-end matter when applied to bank features, as it normally acts in combination with other (mainly Python-coded) tools in order to properly funnel the massive influx of data coming from the users. Santander is currently the most advanced banking company when it comes to this matter, with their recently formed division focusing on the blockchain’s architectural implementation within their channels. Fintech has been using architectural, blockchain-based algorithms since 2016, given the fact that the general approach when it comes to ML applications is easily applicable to financial-related tasks, ranging from mortgages to just small loans.
From recent market analysis, we’ve seen how the Swiss division of UBS has built a “utility settlement coin”, which wants to establish a cryptocurrency supposed to be used in financial markets. The process develops, then, by creating virtual values, or tokens, which are then convertible at the bank’s branch. This is extremely important, as it clearly states the willing and needs for digitalization when it comes to online banking applied to the investment world (UBS is, indeed, one of the top players in the field.)
A Very Much Embryonic Feature
As stated above, the entire blockchain application when it comes to banking is pretty much still at a very embryonic phase, let’s call it “pre-Alpha” if we want to use computer-related keywords. Of course, this doesn’t limit its features and its development but, for now, we can safely say that, in order to see a solid blockchain-based banking feature, we would have to wait for a couple of decades (as stated by many industry analysts). The first sector, specifically, within the banking world, which will be impacted by the blockchain will most likely be related to massive financial investments such as development finance itself.