More and more important faces from the financial industry are gaining confidence in cryptocurrencies and in the technology behind them. As an immutable, decentralized and encrypted ledger, Blockchain can provide clear evidence of any transaction. Thus, it can solve countless issues of over-reporting or false reporting. Most recently, Lori Beer, CIO of the well-known JP Morgan Chace, has made statements about the benefits of the distributed ledger technology.
Beer believes that Blockchain has numerous uses. “We will see greater and wider use of blockchain. […] In a few years blockchain will replace the existing technology, today it only coexists with the current one”, the CIO said. Beer made this statement while attending a press conference in Buenos Aires.
JP MOrgan Chace already a fan of Blockchain
According to her, JP Morgan already uses Blockchain technology to simplify the payment process and to store customer information according to KYC (Know Your Customer) policy. She added that Blockchain technology also helps prevent money laundering. “We are currently following many paths. We invented a blockchain with an open code based on Ethereum. […] The application of this technology in business is more important to us than the technology itself. We are looking not only for cost reduction, but also for opportunities to develop new products”.
This is not the only statement of a JP Morgan Chace representative about the use of Blockchain technology. Recently, CEO Jamie Dimon said he trusts the technological development of Blockchain. He declared that the bank is testing the distributed ledger technology. More than that, the intend to use it “for many things”. In May, the bank filed a patent to develop a blockchain peer-to-peer payments network. Said network could be used for both intra-bank deals, as well as inter-bank deals.
According to the latest studies, Bitcoin and Blockchain will improve the efficiency of the traditional banking system. Thus, Bitcoin and other cryptocurrencies will lead to a significant increase in the development of the banking industry. This will be useful especially in countries with fragile economies.
Now let”s fit it all together. With a cryptocurrency blockchain, as transactions occur they are broadcast and added to various private ledgers. Each one of these transactions is digitally signed for the sake of authenticity. On the other end, there are people or groups collecting these transactions and building ledgers. They are also computing to find a value that when hashed along with the ledger, produces a set number of 0s at the beginning of the hash value. That”s the portion that”s similar to salting. andy kaufman character tony