The main task of investment banks is to increase income. The timely and correct use of innovations such as blockchain technology, allows us to successfully achieve the established goals. According to analysts, this approach increases efficiency, reduces risk and saves billions of dollars.
We talked to Igor Chugunov, the founder of the blockchain platform, about the fact that this over-use of the blockchain and if his new blocking project, ICO CREDITS can become a "bank killer."
A distributed resource technology or block chain is a new type of system used to organize databases. With a high level of security, all team members can access shared data at the same time.
Many modern commercial projects are based on reconciliation or the method of harmonizing the data used. However, since each individual company independently supports the relevance of the information, most of the ongoing bidirectional data exchange processes are very slow. Blockchain technology offers a more holistic and effective approach to the issue.
According to CREDITS counselor Michael Kapilkov, skepticism is peculiar to all new things, even the Internet was initially considered a toy and something temporary. Therefore, the potential of blockchain technologies is biased. At the moment, it is difficult to say if a blockade becomes a "bank killer," but it will definitely help banks improve more and more.
"We, on our part, are ready to combat skepticism with real opportunities and advantages while maintaining our work in informing the masses. In comparison to other centralized systems, CREDITS implies: autonomy, reliability and security (access to a code can not be obtained by hackers or third parties), accuracy (money transferred will be received exactly by the recipient ignoring the intermediaries and he / she can use it immediately), minimal cost (the scalability of the blockchain provides a good possibility and the absence of suspension, transactions not validated and therefore very low cost). '- The CREDITS platform developers say.
Lock advantages for banks
"Companies can shift from basic financial and operational systems to an improved system, ideal for teamwork. It is based on innovative blockchain technology. As a result of such changes, the information structure of most active processes will become much simpler, "says Christophe Ozcan.
The prospect of lower costs, as well as increased efficiency, will continue to lure bank managers to the block chain. A study was conducted to evaluate the degree of influence of blockchain technologies on banking firms. The experts used information on the spending of the world's top eight investment organizations. All the information received was carefully analyzed, which allowed to understand which metrics and parameters would have the maximum impact of the technologies of blocks chains.
The following four examples illustrate the impact of blockchain technology on banks' operational efficiency:
30% -50% reduction of expenses to comply with the requirements and standards established by laws and supervisory organizations. This is due to the simplicity of retesting operations and to increased business transparency.
70% reduction of expenses for financial reporting. It is related to the optimization of data quality, internal control and transparency of operations.
50% reduction of expenses for commercial transactions.
50% reduction of expenses for centralized activities.
The results of the study show that the banks that participated in the experiment could have saved a total of about eight billion dollars. It is worth noting that this estimate does not take into account the potential investments and costs of installing and operating a block chain technology.
The study was guided by criteria with some assumptions. The net effect will not be observed until 2025 in developed markets. It is believed that adequate legislation has been enacted so far to allow the introduction of innovative technologies and refuse to outdated infrastructure.
The initial results showed that a large group of expenses influenced a serious impact of innovative technologies. For many items, the expense reduction was around 50%. It should be understood that cost savings will not be possible in case of difficulties that may arise from state regulators.
An increase in funds is a rather difficult task today. The efficacy of traditional methods is steadily decreasing. Meanwhile, funding for block chain projects is gaining momentum. This is evidence not only of increased investment in a chain of blocks but also of the fact that it is simply not possible to stop this growth because of its increasing pace. The amount that financial market investors invested in block chain projects was more than a few times larger than the experts' projections.
Evaluation of the effectiveness of Blockchain technologies
Banks are now spending a lot of effort, money and time supporting processes that do not increase income. Therefore, financial firms are interested in the opportunities a block offers as a tool for impact on cost indicators.
"Despite the relatively high claims made by major banks, the issue is not far from statements or unique offers. In fact, there are no big blockchain projects that can offer very low prices and a very high speed. But in the long run, the market will naturally be full of projects with similar characteristics.
I repeat: so far does not exist. But some projects are being developed. As for us, I can say that we started working on the project over a year ago, thanks to that fact, we have an MVP ready, and we are about to have the Alpha version ready soon. We can meet the demand of users fairly quickly, "- told us Igor Chugunov, the founder of CREDITS.
We must also understand the fact that a chain of blocks is not a miracle cure. Technologies are not able to remove all of the emerging flaws completely from the system. However, a block chain can minimize the computational processes of interleaving and compensation. Technology can affect cash management, transaction confirmation, asset optimization, and so on. These business processes today cost businesses billions of dollars.
Blockchain-based technologies can streamline mutual settlement procedures or eliminate specific time slots for the banking industry.
As a result, a chain of blocks will allow the denial of a large number of elements actively involved in the operating structure of banks today. And this will lead to cost reduction without a doubt.
Of course, the technology will not be able to completely supplant middlemen or replace an active ecosystem. However, in the opinion of CREDITS developers, the impact of innovative technologies will radically change the entire financial market. Expert expectations will become a reality if modern banks reconsider the strategies used.
What is the next? Action plan
You can effectively use blockchain technologies only after you have created an action plan. To do this, answer the following questions:
What strategy is used to move a company to a new level? What innovations will be used as the main tool? What is their value?
To what extent do the investment plans used meet market offers and opportunities? Are they taking into account the evolution of the situation?
Are you right to choose innovative regulatory and industry-specific forums used as a source to gather information? Does the knowledge of a company's team allow you to keep an active player on the market, understand the introduction of new technologies in a timely manner and actively use them for your own purposes?
According to the developers of the blockchain CREDITS project, the new platform registration can achieve the fastest with a new consensus search algorithm, an improved way to receive, process and save all transactions. A lock handles 1 million transactions one second at a time. The price of a transaction may reach approximately 0.001 parts of the price in US dollars. It will depend on the differential rate that works for a particular algorithm.
With the CREDITS platform, you can successfully solve the problem of performing efficient transactions, preserving all the principles of a block chain and complying with the highest security requirements.
A blockchain technology can significantly alter the performance of a financial company. Investment banks can derive maximum benefit from using a block chain only after they have seriously transformed most of the elements of the existing system. An efficient, economical and secure operating model will increase long-term profits and gain a competitive advantage over other investment organizations.
Tags: #blockchain #banks #money #cryptocurrency #bitcoin
Author: Cripto.Digital
