Topic: How would banks take advantage from the blockchain technology? (Read 1092 times)

the biggest advantage if you ask me is that you can send and receive money 24/7 which gets rid of the shitty working hours restrictions. it's 2015 and banks still don't process anything after and before working hours, also not in the weekends. that must change.

The banks idea is to use a private ledger only banks can use, so one ledger for all the banks arround the world. The trick with the currency is you convert from fiat to crypto on the bank side, so the banks communicate with their own crypto to eachother but convert to fiat when they communicate with their customers, so it will not be you who can choose to use the banks crypto, heaven forbids the customers will benefit from it. That is prohibited to the banks.

Banks can take advantage of the 'public' ledger, they do not have to base their transactions and business on trust with other banks, it will speed up transactions, especially international transactions with banks they do not have active connections and not a mutual trust.

How they would go about the mining is every bank will have their own mining server with which they will mine their own coins, how nice is that! Banks would still make their own money, which they can then lend out to startups and companies, governments, so the old ways can still be maintained. In that they still have the power and leverage to force the government to ban or legislate the cryptocurrencies which will undermine the banks position.

Bit of a doom scenario, sure hope it will never come to that, that Bitcoin will prevail and make any attempt of the banking companies to copy and force the use of their corporate coins a lost cause. Bitcoin is the decentralisation money, not a tool to use to go back where we started from. let us not forget why BTC was created. We should never accept a coin that does not benifit the common good, never accept that banks will dictate our income, never accept that banks have the influence to bankrupt a country merely to make profit of a hedge fund like they did with Greece.

Banks will try to take advantage, but we must make sure they will not get it, we allready have one advantage over the banks, we have allready begun and got a nice head start!

By offering Bitcoin-oriented services. Protected wallets, Bitcoin savings accounts with interest, etc. Banks could really benefit from their established position.

Obviously, Bitcoin / blockchain is going to make their monopoly on money creation and traffic obsolete, but they could still make a truckload of money from services and consultancy.

But they gotta realize: adapt or die.

I think banks cannot take advantage of blockchain technology.

The purpose of blockchains is to create distributed consensus.
Banks don't need that.  They have their trusted relationships
with the central banks, other banks, and customers.

Anything the bank wants to do, it can do it more simply
by acting as its own central authority.

So if there is a valid use case for banks to use blockchains,
I haven't seen it yet.

I refer to this news just as an example:
http://cointelegraph.com/news/114954/bnp-paribas-to-add-bitcoin-to-currency-fund-within-weeks

I would like to know how exactly a bank can take advantage in a distributed ledger based on the blockchain.

Let's hypothesize that a bank makes its own blockchain.
The bank itself will have to set up nodes for its blockchain?
Because why I, a private citizen, would want to set up a node for the bank?
banks will have a closed system for mining and have a webwallet app for purely customer access to make tx's(but not mine)
For money? But if I work for the bank, I can tamper the ledger at their command, or let somebody do it.
banks wont need petahashes.. they will however have a dozen select machines dispursed around the world that cannot be manipulated from an one location
So it's legitimate to think that their ledger will be private: only bank computers will be able to access it.
banks ledger wont be private.. public viewing like blockchain.info can exist.. but the mining side of it will definetly be private.
But for what?
I can't understand this.
Banks ALREADY have their infrastructure to transmit money.
imagine banks today.. bank branches in every town. ATM's in every 10th retail store. thousands of employee's maintaining all the computer network.. now imagine just 12 mining rigs and a single blockchain.info style web server... thats 1million + computers shortened down to just 15 servers... let alone the man power and building leases that are no longer needed in every town, due to the fact everyone can access their funds from phones and not bank branches
They ALREADY have their IT infrastructure to keep track of how much money a person/company holds by them.
If they build a blockchain, this doesn't mean anybody will value their "coin" in any way.
They will still have to change the currency from country to country.
They will still charge the user for operations (they want to earn money), which is more expensive than Bitcoin, that charges nearly nothing.

The only thing they will have will be a PRIVATE registry, and because it's private, they could change it any time they want, so it won't have any OFFICIAL value at all.
I won't trust that ledger, because it can be reversed and tampered because the bank owns ALL the nodes.

Even when there would be some volunteers to hold a node for bank XXX, they would be suspect.
They could be corruptible, they could take money to tamper the ledger.
It's the fact itself that private banks want to make private ledgers that makes no sense to me.

And as for PUBLIC LEDGERS... we don't need a bank to do that for us: if a thing is useful, people will hold up nodes for it.

So, please, somebody tell me a GOOD SERVICE that a bank can have from a blockchain that will not be supported by the public at all, because I can't find anything of use for them.

The purpose of blockchains is to create distributed consensus.
Banks don't need that.

Thank you for your time, dude.
Your reasoning makes sense.
Only, I think it would be ok for companies to keep a pc going 24/7, but I, as a private, would never do that.

But why would they want to have transparent ledger?
People go to bank for privacy also.

banks can do it in a way that when you register an account with them you need to leave your pc 24/7 which will work as a full node,  this mean that anyone can be his own ledger

every movements of his money would be seen in his account and in this way the ledger would be fully transparent

cost would be less for them especially for fees, they can remove all those useless fee for withdrawal deposit, maintanace ecc..and the same for transaction time

as i see it would be like having your own circuit and removing the need to use visa and mastercard or whatever....