Banks Need to Form Consortiums For Blockchain to Work

Banks Need to Form Consortiums For Blockchain to Work

Deloitte, one of the biggest research firms in the world, is very optimistic about the new Blockchain technology. Recently, they released an annual re

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Deloitte, one of the biggest research firms in the world, is very optimistic about the new Blockchain technology. Recently, they released an annual report, stating that different banks and the other financial institutions must come together to implement and commercialize this technology.

Eric Piscini, one of the senior figures in Deloitte, stated that Deloitte is working hard to implement this technology as soon as possible, and is also trying to collaborate with other financial institutions. Since this is a new technology, there will be some problems initially. Regulatory disputes is one such major stumbling block, which Blockchain has to deal with initially. According to him, big firms must collaborate together to solve all the complex issues, and they need to work quickly, so that the technology stays relevant in 2017. He also stated, that they have already collaborated with many companies and are expecting success soon.

The importance of consortium is however debatable. Recently, the R3 consortium declared its intentions of arranging a 150 million dollar fund to continue its work to implement this technology in 2017. However, they couldn’t function properly and failed to make any breakthroughs. Some of the most popular banks, like JP Morgan decided to leave the consortium, because of its failures. The efforts of the consortium was also heavily criticized by many experts, like Peter Todd.

However, in spite of its failure, Eric is still in favor of having a consortium. According to him, a consortium is extremely important for the adoption of the technology . It will also give an opportunity to the startups and the small companies to test their Blockchain technologies. He also says that a consortium is mainly necessary, because this technology will only work when many companies are using it. It will serve absolutely no purpose if just one or two companies implement it.

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