Blockchain Gets A Much-Needed Stamp Of Approval

Finance firm Goldman Sachs Group Inc GS has become a pillar of the financial sector with traders looking to the bank's advice for everything from investing to saving. For that reason, Goldman Sachs Director Don Duet's positive remarks regarding blockchain could be a catalyst for the technology's success.

Blockchain Potential

Bitcoin has had a rough ride over the past year, as many of the coin's users suffered losses due to volatile prices and exchange collapses.

However, the technology that bitcoin runs on – a ledger-like system called blockchain – has been gaining momentum. This is especially true in the financial sector, where banks say blockchain could improve their operations and make things like cross-border payments more streamlined.

Related Link: Blockchain Moves Forward In The Financial Industry

Using Blockchain

Earlier this month, Duet commented on blockchain, saying that he sees the technology as both exciting and groundbreaking. He said blockchain systems have the potential to revolutionize banking operations and the technology could help banks share information and conduct asset transfers more easily and securely.

A Single Truth

Duet said blockchain provides banks with a "single truth," meaning that it creates one constant system that all banks can use. One of the problems with the banking sector as it currently stands, he said, is that every bank is operating with different systems and protocols.

Because of this, banks have to spend a lot of time reconciling differences in order to conduct transactions. However, using blockchain could change all of that by providing banks with one single ledger updated with each transaction.

A Bright Future

While Duet's comments were general in nature, many saw his optimism regarding blockchain as a positive sign for the future. Banks like Goldman Sachs, Morgan Stanley MS and Citigroup Inc C have been exploring how blockchain might fit into their operations in recent months, and Duet's remarks suggest the outlook is promising.