Blockchain Technology is Speeding Up Financial Services
Blockchain has been disrupting the financial marketplace and the financial sector is finally embracing this new technology. Many banks and other financial institutions are building their own blockchains in an effort to avoid the slow road to becoming obsolete. A new code named Thunder, developed by Bitcoin startup, Blockchain, can process volumes of transactions in seconds which can put financial businesses on the fast track to success.
Blockchain technology is a work in progress that may soon take an impressive leap forward according to “Blockchain Developments Show How Quickly Financial Services Could Be Transformed,” posted by Laura Shin on Forbes.com. Bitcoin is one modern network that can transfer money in about 10 minutes, as compared to a credit card transaction that appears instantly, but usually takes about three days to process with various middlemen to move the funds along. Currently, Bitcoin is only able to process about six or seven transaction per second, far short of the 65,000 transactions that Visa can process per second. However, Blockchain recently released new code for a product called Thunder, formerly known as Lightening, a new technology that can complete about 10,000 instantaneous transactions per second. Better yet, this lighting fast solution can also reduce the cost of transactions to a fraction of a penny.
Other financial institutions are developing their own codes, such as Chain Open Standard which is a collaborative effort with Visa, Citi, Nasdaq and others. Chain OS can also process 10,000 transaction per second between financial institutions. The competition between blockchain tech firms should also keep the cost for this new technology down though these modern solutions are still in the early stages of development and application.
Banks Can Rely on ERP to Work Faster, Smarter and Stay Competitive
While waiting for blockchain technology to develop, banks can replace legacy systems with more modern solutions. A robust enterprise resource planning (ERP) solution can automate many common tasks and improve the productivity of your team. Business intelligence features can highlight data and identify trends and other ways you can improve operations while also reducing costs. Arm your people with the technology that makes it easier to enter, share and analyze key data. Contact AKA Enterprise Solutions for more information about using ERP to streamline operations so you can work faster, smarter and be more competitive in this evolving financial marketplace.