Blockchain Dreamers Will Have a Rude Awakening in 2017

Blockchain Dreamers Will Have a Rude Awakening in 2017

Blockchain is a new technology which helps us to record huge volumes of data in a very secure manner. It became extremely popular in 2016. Almost all

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Blockchain is a new technology which helps us to record huge volumes of data in a very secure manner. It became extremely popular in 2016. Almost all the major financial companies were trying to implement it. Governments of some of the major countries were also thinking about it. The famous cryptocurrency, Bitcoin also applies the Blockchain technology. Silicon Valley had high hopes from this technology, and they thought that Blockchain was the future. However, it hasn’t really performed as per expectations.

2017 is expected to be the year when the true reality of Blockchain will be exposed. Previously, all the companies, including the bond trading companies were implementing this technology, mainly because of fear. They thought that the startups and the new companies will implement Blockchain technology and leave them behind. However, they are not worried about that anymore. Nowadays , businesses are implementing this because of necessity. Applying blockchain will help to reduce the cost of the back office processes.

As per reports, the ROE of some of the biggest investment banks in the world is expected to increase by around seven or eight percent in the following years. Although it is more than the last year, but they should be performing better. Applying better technology will definitely help the companies grow, but other than going paperless, Blockchain won’t help much.

Bitcoin which was also growing in popularity in 2016, has slowed down a bit. The R3 Consortium has also proposed a system, which is not really similar to Blockchain. This is another sign that the popularity of Blockchain is slowly decreasing. They have proposed a technology, which is regulator friendly and also has a centralized authority, unlike Blockchain.

However, it will be wrong to completely rule out the necessity of blockchain technology. It has several useful features as well. As per several reports, by 2022, if banks implement Blockchain technology, they will be able to save 1 billion dollars every year. Such figures are a bit inflated. But, it is a sign, that there are still many people who believe that Blockchain technology will rule the future.

A New York Based Trading group, that deals with bonds is creating a blockchain based ledger for proper recording of all the transactions. It is not sure, whether this system will help to cut down there costs or not. But their main aim is to accurately record all the data and get rid of the annoying back office work. However, the main threat is from hackers. If anyone manages to hack into the system, then it will result in a huge loss for the company. And there are around 70 blockchain firms competing with each other. All of them may not be very secure.

There is also the issue of cost. Finance firms has to decide how much they are willing to spend on new technology. However, because of the Trump Presidency, bank shares are doing well. It is now up to the Blockchain firms to prove that they are secure and will be able to offer top quality services.

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