Bitcoin’s acceptance has been somewhat muted in the past few years while Blockchain that underpins it has been growing significantly. Blockchain is essentially a ledger which logs transactions between two parties. Yet while most ledgers are kept in banks or accounting departments, Blockchain is a distributed ledger in which copies are kept at several computers or nodes (under different owners). Each block represents a set of transactions, which is captured sequentially over time. Every new block/transaction has to be approved by a set of computers to be added to the chain.
Key features of Blockchain
Industries are governed by regulations and the financial services industry is no exception. The central bank and the regulatory bodies (like the SEC) specify rules and provide governance. In the case of blockchain, this type of an external regulatory mechanism is not needed. Blockchain is a system that can regulate itself with little or no human intervention.
Legally sound and binding
The actors (users) and their actions (sending money or assets to somebody else) are recorded on the blockchain. Any disagreement between two counterparties can be traced and proved by a court of law. This is possible because all transactions have a public/private key cryptography aspect and the transactions, once added to the Blockchain, is immutable.
Built-in business continuity
Blockchain is a global platform on which critical financial transactions take place. Ideally, any downtime in the technology side has many repercussions. Since it is a peer-2-peer network, with many distributed nodes and supporting computer servers, Blockchain is highly reliable and chances of shut down are almost nil.
Evolving model with no baggage
There are rules which determine who can approve and what checks need to be done for transactions to be added to the Blockchain. Blockchain can fork into newer software versions/models based on the business demands without affecting past transaction history. Upgrades/updates are inbuilt in the software design. It is this flexibility that provides an added advantage.
- Two fully functional Proof-of-Concept use cases on Private Blockchain in the financial services area
- Strong understanding of Bitcoin Core API
- Use Blockchain to service typical application/system requirements besides as a distributed database
- Usage variations of Blockchain to service different business scenarios. Blockchain data re-presented in a readable manner
- Code library to interface with Blockchain products: Initiate transactions and query the ledger