Over the past few years, the blockchain technology has become the most popular trend in the fintech space due to the devotion of major banks and financial institutions in the development of blockchain-based products. Yet, the financial industry has failed to showcase a working application of the blockchain technology. Ripple CTO Stefan Thomas believes the issue lies behind the fundamentals of the technology itself.
Despite the hype train created by the world’s leading financial organizations, the technology itself has received criticism from financial experts that believe the blockchain technology is not applicable in the realm of traditional finance. It brings little economic and financial benefits compared to the costs involved in the development of the technology.
Based on the blockchain-based technologies and applications created by the banks over the years, the limitations of the blockchain technology are fairly evident. It is an expensive technology to implement and it requires each and every user in the network to agree upon a set of rules and policies. If the established frameworks are broken, then the entire network shuts down.
Ripple CTO Stefan Thomas, who has been long involved with bitcoin and blockchain-based systems since early 2011, explains