Potential Uses of Blockchain in Banking

Blockchainpic
Blockchain
Image: investopedia.com

The former CEO of Banco Real in Venezuela, Julio Herrera Velutini comes from a 100-year tradition of banking work in Venezuela and Puerto Rico. Bankers like Julio M. Herrera Velutini are aware of changes in the way that people bank, and mobile banking is becoming one of the most common forms of banking in use today.

One area undergoing significant growth in mobile banking is the use of blockchain, a technology that provides a distributed online database that multiple users can access. While this technology began in the realm of cryptocurrencies like Bitcoin and Ethereum, traditional banks are looking into ways in which blockchain assets can be leveraged to create new, more secure methods of banking. Blockchain transactions currently face some roadblocks in the fields of data security, but banks are seeking ways to utilize the technology effectively.

One leading method currently emerging in this process is smart contracts, which recognizes a set of circumstances leading up to an event and then automatically completes it. These processes normally require an intermediary, but blockchain technology holds promise in automating and speeding up these steps. In fields like international trade finance, this could significantly speed the transfer of necessary paperwork.

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