Major financial institutions and banks that have spent hundreds of millions of dollars in funding and resources for the development of various blockchain-based applications and platforms are struggling to create a working product for mainstream users. Credit Suisse, a Swiss multinational financial services firm, has identified eight major barriers between the blockchain technology and mainstream users in a recent report.
Credit Suisse has been one of many financial establishments that have called for the development of blockchain-based financial systems. In a newly published 135-page report, Credit Suisse went as far describing bitcoin a “niche player,” while portraying its underlying technology, the blockchain technology, as the safe option for banks.
“Enter blockchain – a low-cost, instant, virtually unhackable, fully automated, end-to-end transaction system built on a private permission-based network. Such a system would not only enable banks to eliminate overhead costs, but would provide a lower-cost money transfer product attractive to large multi-national organizations with high frequent cross-border funding and trade finance demands,” reads Credit Suisse’s report.
If banks see this potential in the blockchain technology, why haven’t they been successful in implementing it? Credit Suisse identified the following eight reasons:
Security vs Cost Trade-off
Credit Suisse accurately