What banks are trying to do is just to build their own private blockchain powered network. And that is fine if they want to waste money on it.
But sooner or later they are gonna realize that their 'blockchain' is just fancy name for standard network or slightly better but simple database.
Private blockchains is no something Satoshi had envisioned to be successful or endorsed in the first place.
Topic: [2016-07-24] coindesk.com|Why the Buy-Side Should Get Off the Blockchain Sidelin (Read 237 times)
July 24, 2016, 06:31:10 PM
July 24, 2016, 03:43:44 PM
Blockchains have attracted significant interest in the financial sector, a rare occurrence for a new technology in an industry not known for being at the forefront of technological innovation.
However, dig a little deeper into where the interest is coming from, and you’ll see a host of sell-side financial institutions and back-office groups working on prototypes. Most of the R3 consortium members, for example, are sell-side banks. Notably absent is the buy-side, made up of pension funds, mutual funds, hedge funds, private equity and other money management firms.
The buy-side has different structures and mandates, but at the end of the day, investor risk-adjusted returns are a primary concern, and the blockchain can help with that.
The back-office is interested in blockchains because of the ability to simplify settlements, and provide reconciliation of data among different parties without explicitly moving and verifying data across organizational borders. This saves a check on data validity at each entry and exit point, as a consensus mechanism is accessed collectively by a group of participants.
But while interest from the buy-side has been generally muted, it would be a mistake for these firms to ignore blockchains.
http://www.coindesk.com/buy-side-get-off-blockchain-sidelines/
However, dig a little deeper into where the interest is coming from, and you’ll see a host of sell-side financial institutions and back-office groups working on prototypes. Most of the R3 consortium members, for example, are sell-side banks. Notably absent is the buy-side, made up of pension funds, mutual funds, hedge funds, private equity and other money management firms.
The buy-side has different structures and mandates, but at the end of the day, investor risk-adjusted returns are a primary concern, and the blockchain can help with that.
The back-office is interested in blockchains because of the ability to simplify settlements, and provide reconciliation of data among different parties without explicitly moving and verifying data across organizational borders. This saves a check on data validity at each entry and exit point, as a consensus mechanism is accessed collectively by a group of participants.
But while interest from the buy-side has been generally muted, it would be a mistake for these firms to ignore blockchains.
http://www.coindesk.com/buy-side-get-off-blockchain-sidelines/
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