The banking sector may be rushing to adopt a technology which they are not prepared to use. The rapid adoption of Bitcoin’s underlying blockchain technology by the banking sector across the world was criticized by Zennon Kapron of Kapronasia and Bobby Lee the founder of China’s leading Bitcoin exchange, BTCC.
In a recent statement, Zennon Kapron mentioned that the banks are trying to use the blockchain technology to solve a problem they don’t have. Banks started showing interest in Blockchain technology amid increasing adoption of bitcoin and bitcoin-based financial services among the masses. As the banks came to realize the potential of bitcoin and its underlying technology to disrupt traditional banking and financial services, they decided to compete with the digital currency by adopting the very technology it is built on.
Zennon Kapron was quoted by a China-focused publication saying,
“You see these banks that really get excited about blockchain and fintech. At some point over the next year, banks are going to wake up and realize that blockchain is a great sexy technology for a problem that doesn’t exist.”
Blockchain technology has already proven its potential in offering improved solutions for various operations across different industries. Even though banking is one such sector, the current technology they are attempting to use is still immature. The blockchain technology continues to undergo a lot of improvements and in the near future, there may be multiple blockchains that are global, immutable, public and open source like the bitcoin blockchain, which the banking sector really needs to create robust solutions. At present only bitcoin blockchain satisfies all these criteria and the banks are more interested in platforms other than the Bitcoin protocol, expressed Bobby Lee. ‘ The banks are relying upon private blockchains instead of using decentralized public networks. This may also increase the risk of malicious attacks on the private blockchains, resulting in data corruption and security issues.
Jiang Zhuoer: BTC.Top Will Support the Camp Favored by a Majority of Hash Power in the Bitcoin Cash Hash War
Jiang Zhuo’er and his BTC.TOP , a major Chinese mining pool, will not take side in the upcoming Bitcoin Cash’s hash war between two competing camps, Bitcoin ABC and Bitcoin SV. Zhuo’er shared h
F2Pool Will Support the Mining of BCHABC and BCHSV after Bitcoin Cash Hard Fork
F2Pool, the sixth largest bitcoin mining pool in the world, announced on Tuesday that it will allow miners to mine both coins generated from the upcoming Bitcoin Cash hard fork after the chain split
IBM Says Blockchain Can Power 'Open Scientific Research' in New Patent Filing
A patent application published Thursday claims the process of conducting scientific research can benefit from the blockchain.
Led by a team at IBM's Watson Research Center, the patent application p
CFTC Fines Bitcoin Trader $1.1 Million for Crypto Fraud
The U.S. Commodity Futures Trading Commission (CFTC) has jailed a bitcoin trader and fined him over $1 million for running a fraudulent bitcoin and litecoin scheme.
According to a press release iss
Japanese Firms Claim Success in Marine Insurance Blockchain Trial
One of Japan's largest insurance companies, Tokio Marine & Nichido Fire Insurance, and IT firm NTT DATA have completed a trial that put the paperwork for marine cargo insurance claims on a blockchain.
Accenture Puts Software License Management on a Blockchain Platform
Global professional services giant Accenture has rolled out a new software license management application built with tech from distributed ledger startup Digital Asset.
Accenture announced in a pre
Singapore's Central Bank, SGX Develop Blockchain Settlement System
The Monetary Authority of Singapore (MAS) and the country's stock exchange, Singapore Exchange (SGX), have developed a settlement system for tokenized assets that can work across different blockchains
Colorado Regulators Crack Down on Four More ICOs
Colorado regulators took action against four ICOs Thursday, bringing the state's total number of cease-and-desist orders against crypto startups to 12.
The state's "ICO Task Force" rebuked Bitcoin