Matthias Knab, Opalesque:
Johan Hillebrand writes on Harvest Exchange:
Distributed ledger technology, such as blockchain, has been gaining a lot of attention as the underlying infrastructure of Bitcoin. Thanks to the open architecture of blockchain's programming code, many alternative use cases are rapidly being developed.
How will this impact the financial industry? Speed read;
- Distributed ledger technology is hyped but here to stay
- Adoption will be evolutionary rather than disruptive because of regulation
- Companies involved in labor intensive, costly and lengthy processes are most at risk
A distributed ledger is a database that keeps track of who owns a specific asset. This asset can be physical or electronic. Examples are diamonds, real estate and currencies. An essential feature of the new technology is that it is distributed. Every participant can keep a copy of the ledger, which is updated automatically when new transactions occur. The best known example of such a distributed ledger technology is blockchain. Block chain is the underlying ledger technology behind Bitcoin, a cryptocurrency. All Bitcoin transactions are processed and recorded on the Block chain. Literally every Bitcoin transaction ever made is recorded and can be traced. Not necessarily traced to people, but traced to accounts. ......................
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