Blockchain For Banks Could Be A Big Business

Cryptocurrencies have received a lot of attention over the past few years as more and more people took an interest in the technology. However, much of the buzz surrounding cryptocurrencies like bitcoin was negative after a spate of high profile scams and criminal cases involving the currency painted it as a tool for illicit activities.

While bitcoin may never become a mainstream payment method, blockchain, the ledger-like technology that it runs on, has been touted as one of the most important developments of the decade.

Related Link: Bitcoin May Be Flailing, But Blockchain Is On The Rise

Banks On Board

Traditional finance firms have been reluctant to embrace bitcoin as a currency, but blockchain is another story. Banks around the world including Bank of America Corp BAC, Morgan Stanley MS and Deutsche Bank DB have all taken an interest in blockchain, saying they could see the technology improving how they do business. Blockchain provides a secure way to facilitate transactions without involving a third party intermediary. Banks say this could be useful for everything from sending payments to setting up a smart contracts system.

Implementing Blockchain

While many banks are studying blockchain using task forces set up within their own company, several startups have emerged to help banks study the impact of blockchain on their operations. Blockstack, Eris Ltd and Coin Sciences are all private firms that offer companies blockchain solutions. They offer banks the ability to experiment with blockchain systems that meet their specific needs, rather than providing them with something that needs to be modified.