Blockchain Case Summary

a. The company wouldn’t produce replicas and change their business model (sales are still increasing roughly 20% each year)

The option B is the best way to increase value the most (but the cost to the customer is higher, and the perceived benefit as well).

Our focus will be on The Bank of the People a small regional fictitious bank could use the blockchain to increase the efficiency of the bank-to-bank payment systems. The worlds’ transfer payment system cost more than 2 trillion dollars in fees and operation cost. It take days for a settlement any cross border a transfer under 50 dollars would almost entirely be consumed in fees and small payment of say .50 Cents in not even possible The blockchain will minimized delays in payment and remove settlement risk. The need for Nostro accounts would be greatly reduced (when a domestic bank having an account in a foreign bank in that country’s currency).

Blockchain technology has the potential to restructure large parts of the private investment fund and banking industry. Most legacy systems at private investment funds and banks are much more expensive than blockchain technologies, are subject to human error, and take much more time. Banks charged $1.7 trillion in processing fees in 2014. Because blockchain technology is transparent, verifiable, self-authenticating, and self-enforcing, financial transactions can be executed instantaneously at near zero transaction costs, increasing the efficiency for business and individuals exponentially. These factors in addition to blockchain technology’s disintermediation through technology driven democratized trust, precipitated the financial industry’s substantial investments into blockchain technologies in fear of becoming obsolete.

2 WHAT ARE THE POTENTIAL COSTS, BENEFITS AND RISKS OF BLOCKCHAIN FOR A FINANCIAL ORGANISATION?

In today's society, cash is quickly becoming obsolete. The vast majority of transactions can now be completed without cash. If a person has direct deposit, they can directly deposit their paycheck into their bank account. Using their home computer, that person can pay their monthly bills electronically by using a third-party bill paying system authorized by their bank. Credit cards, once reserved for major purchases, are now accepted at grocery stores, fast food restaurants, pay phones, and coffee shops. Debit cards are quickly replacing checks for many of our day-to-day purchases. There are quite a few transactions that cannot be completed with cash, including renting cars, many

Blockchain Technology supports a distributed ledger system and maintains a growing list of records that are confirmed by the participating people. In blockchain framework, each transaction is recorded in public ledger and stores the information of the transaction. In Current scenario, all the currency transactions between persons or entities are centralized and controlled by some other organizations (Interoperability team). Transferring money will needs bank and merchants who process the payments and they charge fee for each transaction. This is the common phenomenon in every domain and this complexity is simplified by Blockchain technology by creating decentralized environment where no interoperability team is required to control the

Singapore’s central bank also announced a new agreement with the central bank of the Philippines to explore how blockchain could facilitate international payments between their markets.

The blockchain is a trust-based technology which empowers users to “be your own Bank” to manage their own financial future. This will openly build connection in P2P network enabling users to communicate frequently and authentically which leads to trust. Further it will greatly reduce cost as it eliminates costly intermediaries and transaction processing time. When the Blockchain wallet is created on the web or mobile app, it enables users to backup wallets to servers and only the user alone has the key to their wallet as the company can’t see user’s balance or transactions (Dillet,

Since the creation of Bitcoin in 2009, cryptocurrencies have gained an increasing amount of media attention. Ever since Bitcoin first began trading, investors as well as miners have proclaimed the positive and negative aspects of the virtual currency, though the fluctuation in price of Bitcoin has been very difficult to determine. This research paper look analyzes some of the issues that must be addressed to ensure the future of Bitcoin.

xii. This move of increasing the price makes the customers in a tight spot especially those who are in a life-or-death situation.

Applicability of this process to organizations is challenged by the transaction speed, verification process, data limit, high starting cost and the necessary large processing power. Additionally, the regulatory status with governments is still uncertain. According to Gartner, Blockchain is at the peak of inflated expectation phase, closing in on the peak of the cycle. This suggests some of the expectation around the usefulness of this technology might not be feasible. Additionally, it shows that, it will take another 5-10 years for this technology to become mainstream.

Bitcoin was introduced in 2009. The financial crisis had created a deep mistrust of the banking systems in many segments of the population worldwide. Some people saw Bitcoin as a way of independence form the banking system. There are three important features to Bitcoin which contribute to its growing popularity; the low cost of fund transfers, the easy access of the network by people without access to the banking system, and the anonymity of the transactions. (As described above, the transactions do not include names, but rather digital signatures made up of a series of random numbers.)

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

Around 1,200 years ago, the pound sterling was created. Serving Great Britain and its territories to this present day, it is one of the most traded currencies in the world. Some 1,000 years later, the dollar came in to existence followed by the Euro at the turn of the millennium. In 2008, a new paradigm, Bitcoin, reared its head into the world economy. Bitcoin sets itself apart from the aforementioned currencies because it doesn’t exist; it is one of many digital currencies, albeit the most popular by far. Bitcoin is a private, peer-to-peer cryptocurrency that is slowly gaining prominence. Sitting at over 16 million bitcoins in circulation, the question must be asked whether Bitcoin should be seriously considered as a viable currency as it