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Topic: Why would banks use a blockchain? - page 4. (Read 2834 times)

legendary
Activity: 2506
Merit: 1030
Twitter @realmicroguy
January 16, 2017, 11:34:48 AM
#6
Blockchains don't really offer anything a bank would need.   

They have perfectly good ways of storing and processing transactions already.  With Btc addresses and transactions are publicly visible.  I don't want my bank account and details visible to the world.  Unless you had unique, one shot payment addresses, it would be simple to create a wiki mapping addresses onto organisations and eventually people.  Then there is processing.  Btc only works as it pays miners to verify transactions.  There is no way a bank would give over its processing to a third party that wasn't 100% legit.  Would it run all its miners/verification in house?  How do you explain the 51% threat to a bank?

The openness of block chains isn't really relevant to huge organisations. 

A private blockchain is like a local area network, the access is controlled locally. It is not open like Bitcoin.

There would be no 51% threat to the chain and the network could be maintained using minimal CPU power.
legendary
Activity: 1904
Merit: 1074
January 16, 2017, 11:34:01 AM
#5
The banks will use "Private" Blockchains that would only be accessible to them. Bitcoin is PUBLIC. One of the main reasons banks would be

interested in "Private" Blockchains, would be for security. A decentralized network, cannot easily be taken down, like a centralized ledger. They can

also bypass services like SWIFT, if they want to transfer money between different banks.  Huh {Making it cheaper, and more profit for them}  Angry
sr. member
Activity: 485
Merit: 274
January 16, 2017, 11:17:39 AM
#4
Blockchains don't really offer anything a bank would need.   

They have perfectly good ways of storing and processing transactions already.  With Btc addresses and transactions are publicly visible.  I don't want my bank account and details visible to the world.  Unless you had unique, one shot payment addresses, it would be simple to create a wiki mapping addresses onto organisations and eventually people.  Then there is processing.  Btc only works as it pays miners to verify transactions.  There is no way a bank would give over its processing to a third party that wasn't 100% legit.  Would it run all its miners/verification in house?  How do you explain the 51% threat to a bank?

The openness of block chains isn't really relevant to huge organisations. 

who said anything about bitcoin, anything about being public, or showing the source code?

this is my speculation based on what i have read:
it is the technology they are going to use. which means a blockchain that they will use "internally" hidden from eyes of anyone outside. they will have their own internal miners and everything will be centralized and closed source. so there is no blockchain for you and me to see, there is no miner that we can attack 51% Smiley
by doing this they can have super fast, and extremely secure way of transactions with zero possibility of any kind of attack in the middle.

and also there are anonymous transactions that can be used even if the blockchain is public. so it can solve the problem of privacy.
Would they even have miners if all transactions come from inside the bank?  Maybe one to keep an eye on things.  No miners means the block chain is just a data structure.  Then it all boils down to how efficient is it at storing data compared to their current db? 

legendary
Activity: 2128
Merit: 1293
There is trouble abrewing
January 16, 2017, 10:58:10 AM
#3
Blockchains don't really offer anything a bank would need.   

They have perfectly good ways of storing and processing transactions already.  With Btc addresses and transactions are publicly visible.  I don't want my bank account and details visible to the world.  Unless you had unique, one shot payment addresses, it would be simple to create a wiki mapping addresses onto organisations and eventually people.  Then there is processing.  Btc only works as it pays miners to verify transactions.  There is no way a bank would give over its processing to a third party that wasn't 100% legit.  Would it run all its miners/verification in house?  How do you explain the 51% threat to a bank?

The openness of block chains isn't really relevant to huge organisations. 

who said anything about bitcoin, anything about being public, or showing the source code?

this is my speculation based on what i have read:
it is the technology they are going to use. which means a blockchain that they will use "internally" hidden from eyes of anyone outside. they will have their own internal miners and everything will be centralized and closed source. so there is no blockchain for you and me to see, there is no miner that we can attack 51% Smiley
by doing this they can have super fast, and extremely secure way of transactions with zero possibility of any kind of attack in the middle.

and also there are anonymous transactions that can be used even if the blockchain is public. so it can solve the problem of privacy.
legendary
Activity: 2870
Merit: 7490
Crypto Swap Exchange
January 16, 2017, 10:08:54 AM
#3
It's because you don't know the difference between bitcoin, open blockchain and closed blockchain.
In this case, bank will adopt closed blockchain where only authorized people can access/modify blockchain so only bank who can see your bank account and the details.

Maybe an experienced member could give us more info about it.
sr. member
Activity: 476
Merit: 251
January 16, 2017, 10:06:35 AM
#2
Blockchains don't really offer anything a bank would need.   

They have perfectly good ways of storing and processing transactions already.  With Btc addresses and transactions are publicly visible.  I don't want my bank account and details visible to the world.  Unless you had unique, one shot payment addresses, it would be simple to create a wiki mapping addresses onto organisations and eventually people.  Then there is processing.  Btc only works as it pays miners to verify transactions.  There is no way a bank would give over its processing to a third party that wasn't 100% legit.  Would it run all its miners/verification in house?  How do you explain the 51% threat to a bank?

The openness of block chains isn't really relevant to huge organisations. 
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I have to disagree. Banks are interested because of the openness of blockchains. Instead of having complex and long-winded digital records, they can have all this information easily accessible. I think it also greatly reduces the problems resulting from money transfers between different banks.
sr. member
Activity: 485
Merit: 274
January 16, 2017, 09:12:39 AM
#1
Blockchains don't really offer anything a bank would need.   

They have perfectly good ways of storing and processing transactions already.  With Btc addresses and transactions are publicly visible.  I don't want my bank account and details visible to the world.  Unless you had unique, one shot payment addresses, it would be simple to create a wiki mapping addresses onto organisations and eventually people.  Then there is processing.  Btc only works as it pays miners to verify transactions.  There is no way a bank would give over its processing to a third party that wasn't 100% legit.  Would it run all its miners/verification in house?  How do you explain the 51% threat to a bank?

The openness of block chains isn't really relevant to huge organisations. 
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