Blockchain's Post-Financial Crisis Analysis

Real-time monitoring of risks – This means that any transaction processed over the account will be reflected as soon as they

Speidel, R. E., Summers, R. S., & White, J. J. (1993). Sales and secured transactions: Teaching materials. St. Paul, Minn: West Pub.

Some people only knew blockchain as the causal technology behind the always controversial digital currency Bitcoin. Yet, blockchain technology is so much, much more; it's unbelievably innovative and its potential is extensive to say the least. Much like the internet of today, there’s no need for you to know how this technology works to use

technology whose demand and sales do not have a proven track record, but it still will be able to count on its current alligator tag, system and other sales to help fund it.

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.

Wall Street is going gaga for blockchain. According to a recent report from the World Economic Forum (WEF), over $1.4 bn has been invested in blockchain technology in the past three years, with over 90 firms coalescing into rival groups. The motivation is clear. Distributed ledger technology, commonly known as blockchain, and the underlying idea behind crypto-currency bitcoin, promises to revolutionize the infrastructure of modern finance and investment.

Research and development teams may or may not know the uncertainties behind or surround new technologies considering they are in the process of developing the product or service. It may try to resist attempts to quantify value; but on the other hand; the financial department would think otherwise, as it is evidence of woolly thinking. Of course, both sides are right in their own way. When a newly modern advanced product is near to completion, no company will proceed without detailed financial figures first. However, when an intriguing new idea is first generated, the decision to take it further should not and must not be based on financial calculations alone.

Bitcoin is a network that enables a different type of payment system it is used a lot for purchasing objects of the dark web and completely digital money. It is the first peer-to-peer payment network that is powered by its users with no central authority or middlemen (someone who buys goods from producers and sells them to retailers or consumers). From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

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

Blockchain is the now fastest growing technology promising its user anonymity on the web and integrity of their contents. Blochchain has evolved so fast that companies such as IBM, Microsoft and many other are intergrading the technology into the service their offered their customers. What are some of the use cases that blockchain can introduce to an already enhanced banking system that has been around for centuries one might ask themselves. For one the technology can improved the security of its client data and the manipulation of their assets. As of today the banking system in exclusive and only accessible to those societies with a high GDP. It is also usually the case that countries with low GDP also have lowest securities

There are various risks involved in clearing and settlement systems. In order to stabilize the Canadian financial system, all systemically important clearing and settlement systems are required to be able to handle certain levels of risks sufficiently under reasonable circumstances.(8) The risks are listed: Systematic risks: The risk to entire payment system due to the inability of one institution to meet its obligations in a timely fashion. This may cause significant liquidity or credit problems, and, as a result, might threaten the stability of or confidence in markets. Operational risks: The risk that deficiencies in information systems or internal controls, human errors, or management failures will result in unexpected losses. Pre-settlement risks: The risk that a counterparty to a transaction for completion at a future date will default before final settlement. The resulting exposure is the cost of replacing the original transaction at current market prices. Credit risks: The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. Liquidity risks: The risk that a counterparty will not settle an obligation for full value when due, but on some unspecified date thereafter. Settlement risk: The risk beard by all foreign exchange community members for losing the principle. Principal risk: The risk that the seller of a security delivers a security but does not receive

In this competitive era, it is imperative for a well functioning economy to imply effective methods for businesses to pay their employees, suppliers and investors, for households to purchase goods and services, and for governments to collect taxes and make payments, such as pensions and interest on bonds. These payments, known as retail or low value payments include debit and credit card transactions, cheques and direct entry transactions (Hunt & Terry 2014). In order to improve the efficiency of the payment system, Reserve Bank of Australia introduced a new settlement arrangement. The new ‘same day’ settlement system would increase the rate of supply of funds and reduce the risks associated with deferred net-payment system. The

Not many people know of this new form of electronic payment known as a bitcoin, let alone know exactly what it really is.. So what exactly is a bitcoin? A bitcoin has several important features that set it apart from government-backed currencies, it is a form of digital currency that no one, such as the government, controls and is created and held electronically and is the world’s first completely decentralized digital currency. Bitcoins aren’t printed, like most currencies we see today like the American dollar or euros, they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. And is the first example of a growing category of money known as cryptocurrency.

Bitcoin is the first decentralized peer-to-peer network of payment; with this form of technology there is no central authority or middlemen, it is completely powered by its users. The Bitcoin implements the concept of “crypto-currency”. Crypto-currency is the use of cryptography to control the creation and transactions of the Bitcoin.

Reports pointed to the MAS’ efforts to create a digital Singaporean dollar on a blockchain as one potential initiative that could come into play with this collaboration with the Philippines. The two central banks will also explore streamlined Know Your Customers (KYC) solutions that use blockchain.