The short history of Bitcoin and the blockchain proves that a second glance can definitely change one’s perception. From being a victim of skepticism and criticism since its debut in 2009, Bitcoin has come a long way. And it hasn’t been alone; it has brought with it the ‘blockchain’ – one of the hot topics of debate among prominent banking institutions.
These are the same institutions that launched scathing attacks on the concept of cryptocurrency, perceiving it as a threat to the traditional banking ecosystem. Though they haven’t embraced Bitcoin, they are infatuated with the blockchain.
The question then becomes: Why are big banks fascinated by it? Just like banks and financial institutions, which maintain a record of all transactions in a central authority in order to certify ownership and clear transactions, Bitcoin has its blockchain. But the blockchain uses distributed ledger technology, which eliminates the need for any such central authority.
According to the paper for Fintech 2.0, “distributed ledgers can be open, verifying anonymous actors in the network, or they can be closed and require actors in the network to be already identified. The best known existing use for the distributed ledger is the cryptocurrency Bitcoin.”
Use of this technology can increase the accuracy of