Written by Roy Keidar and Yuval Shalheveth of Israeli law firm Yigal Arnon and Co with the assistance of Ahuva Goldstand.
The general consensus is that there is huge potential in Blockchain technology. Some say it may be as big as the internet itself, doing for transactions of value what the former has done for transfers of information. Blockchain could completely alter traditional industries, changing the face of financial transactions, legal contracts, verification mechanisms and even voting procedures. Where consensus is lacking, is what the future steps of Blockchain might be. What can we expect to see next? Our hunch: we are entering the phase of the institutionalization of Blockchain, and it will be led by the financial system. Yes, by the banks.
The potential advantages to using Blockchain are obvious. Most significant is the ability to remove the middleman, and allow for faster, cheaper and more secure transactions. This could prove to be economically beneficial to the financial system which facilitates billions of transactions every day. No less important is the advantage it provides