Recently, it became known that a New York-based financial titan, called Goldman Sachs, has created its own cryptocurrency. It was developed for a sett
Recently, it became known that a New York-based financial titan, called Goldman Sachs, has created its own cryptocurrency. It was developed for a settlement system in order to trading stocks, bonds, and other assets.
Eventually they created a patent application for a new virtual currency called SETLCoin that is believed to make it easier and faster to trade securities and settle those assets. However the news about the patent application delayed because of bureaucracy reasons.
An important thing to mention is that the virtual currency SETLCoin is not a bitcoin type because it is not created and held electronically. The actual interest the financial giant has is the system behind it, known as blockchain. Actually, Goldman says he sees bitcoin more like an opening act for the blockchain technology.
If you aren’t aware, the blockchain became famous as the public ledger to all Bitcoin transactions that have ever been proceeded. Now Goldman Sachs considers blockchain as much more than just the underlying pipes of bitcoin. Sachs sees the technology as introducing a new set of tools to lower the costs and cuts out the middle-man with a promise to make centralised institutions outdated. This solution promises to address consumer options and most importantly those for the far more profitable enterprise.
However, specialists in the niche point out that there remain some roadblocks before the blockchain technology can be fully realized.
Nowadays the blockchain technology appears more and more appealing apart from Bitcoin. According to many, its decentralized nature as the biggest advantage of the blockchain over current financial ledger systems. It results in major benefits as offering more efficient and more secure operations at lower costs. Boroujerdi shares that opinion and adds another advantage it adds – the cut of middle-man during transactions. With all these benefits that the blockchain system provides it has the potential to redefine transactions and apply in many different industries.
However, Boroujerdi also noted some potential problems that might occur with the technology as, for example, limited scalability. Besides that, he says the real star here is blockchain. It might have been overshadowed by bitcoin until recently and many might have missed it for that reason. But now, that this time is in the past, blockchain technology starts to shine brightly and is aimed at streamlining, potentially, a multitude of businesses.