Banks are seeking to leverage the unlimited potential of BLOCKCHAIN with the belief that it contains the promise
to reduce costs by up to $20 billion and revolutionize how the industry works.
BLOCKCHAIN is a network of computers, all of which must approve a transaction has taken place before it is recorded, in a “chain” of computer code.
“Cryptography” is utilized to keep transactions secure while costs are shared among those within the network.
The details of the transfer are recorded on a public ledger that anyone on the network cans see.
BLOCKCHAIN works by sequentially ordering blocks of transactions into a chain. Transactions between users are gathered as blocks and broadcast to a network of computers.
Those gathering the blocks are known as “miners”, and compete to verify them by unscrambling standard cryptographic puzzles derived from their contents.
The “winner” publishes the result to other computers and receives a monetary incentive.
A new block is added to the BLOCKCHAIN roughly every 10 minutes, containing the transactions of the last 10 minutes.
Other computers then verify the work. The open source code means it can be widely distributed and stored, decentralizing it. Altering or amending the transaction would require changing each and every copy.