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Financial Technology
Importantly, it can speed up transactions	own at least 100 bitcoins. On the system, if a dramatically and cut costs while lowering	majority of the participants agree that the
more obvious than the banking industry. Currently, banks maintain huge computer operations integral to the bank. Within the system, processing data is comparatively straight-forward. Communications between systems and organisations (for example, a transfer between banks) is far more complex. If banks shared data using blockchain technology, it could remove a layer of inter- mediate processing that is currently necessary. Blockchain can therefore speed up transactions and reduce cost.
So what is the benefit to the consumer? If banks and other financial institutions are able to speed up transactions and reduce costs, it will mean cheaper and more efficient services. Exchanging and transferring money abroad, for example, should happen almost instantaneously at a fraction of current cost.
transaction looks valid, (i.e., verifies the information matches the blockchain’s history), then the transaction is approved and a new block is added to the chain.
There are different blockchain
the risk of fraud. Let’s add some detail. A blockchain is a
digital ledger of transactions distributed amongst a network of computers. It uses cryptography to allow each participant on
‘If banks and other financial institutions are able to speed up transactions and reduce costs, it will mean cheaper and more efficient services
the network to add to the ledger in a secure	configurations that use different consensus way without the need for a central authority.	mechanisms, depending on the type and size
Once a block of data is recorded on the blockchain ledger, it’s extremely difficult to change or remove. When someone wants to add to it (i.e., add new data), participants in the network, all of which have copies of the existing blockchain, run algorithms to evaluate and verify the proposed transaction. Verification is possible as all participates have the blockchain history, so if a person is purporting to sell, say 100 bitcoins, the blockchain can verify through the history of transactions that such person does indeed
of the network and the needs of participating companies. The bitcoin blockchain, for example, is public and “permissionless”, meaning anyone can participate and contribute to the ledger. Many firms also are exploring private or “permissioned” blockchains whose network is made up only of known participants. Each of these blockchain implementations operate in different ways.
Why is this so exciting? Blockchain technology has a host of applications, none
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