{"id":6282,"date":"2016-05-02T07:00:32","date_gmt":"2016-05-02T15:00:32","guid":{"rendered":"http:\/\/formtek.com\/blog\/?p=6282"},"modified":"2016-03-25T07:38:58","modified_gmt":"2016-03-25T15:38:58","slug":"blockchain-banks-begin-to-experiment-with-blockchain-distributed-ledgers","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/blockchain-banks-begin-to-experiment-with-blockchain-distributed-ledgers\/","title":{"rendered":"Blockchain: Banks Begin to Experiment with Blockchain Distributed Ledgers"},"content":{"rendered":"<p><a href=\"https:\/\/bitcoin.org\/en\/\" target=\"_blank\">Bitcoin <\/a>has popularized the underlying technology that enables the currency called the blockchain. <a href=\"https:\/\/en.wikipedia.org\/wiki\/Block_chain_(database)\" target=\"_blank\">\u00a0Blockchain<\/a> is a kind of &#8220;distributed ledger&#8221;. \u00a0There&#8217;s not a single entity or overseer that manages and maintains a master copy of the information, like a bank. \u00a0With a distributed ledger the information is in the hands of many participants. \u00a0Members works off of a &#8220;<a href=\"http:\/\/www.eecs.harvard.edu\/econcs\/pubs\/naim-thesis.pdf\" target=\"_blank\">consensus mechanism<\/a>&#8221; that determines how a\u00a0ledger is to be updated. \u00a0Blockchain and Bitcoin, for example, are based on a cryptographic mechanism that can ensure ownership and provide proof of information entered into the ledger.<\/p>\n<p>Blockchain has become an experimental testbed for the creation of &#8220;smart contracts&#8221;. \u00a0\u00a0Advantages of blockchain technology include:<\/p>\n<ul>\n<li><strong>Accuracy<\/strong> &#8211; provides trace of ownership and a complete history of traceable records.<\/li>\n<li><strong>Security<\/strong> &#8211; provides a transparent and tamper-proof record of actions that can be publicly shared.<\/li>\n<li><strong>Cost<\/strong> &#8211; the technology has the potential to make the cost of transactions much cheaper.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/r3cev.com\/team\/\" target=\"_blank\">David Rutter<\/a>, chief executive at R3, a blockchain technology company, \u00a0<a href=\"http:\/\/www.forbes.com\/sites\/laurashin\/2016\/03\/03\/bitcoin-technology-tested-in-trial-by-40-big-banks\/#6af1ec4f3d97\" target=\"_blank\">said in a statement<\/a> that blockchain &#8220;technologies represent a new frontier of innovation and will dramatically improve the way the financial services industry operates, in much the same way as the advent of electronic trading decades ago delivered huge advancements in efficiency, transparency, scalability and security.\u201d<\/p>\n<p>In an evaluation led by the company R3, 42 banks participated in evaluating distributed ledger technologies from\u00a0<a href=\"https:\/\/chain.com\/\" target=\"_blank\">Chain<\/a>, <a href=\"https:\/\/erisindustries.com\/\" target=\"_blank\">Eris Industries<\/a>, <a href=\"https:\/\/www.ethereum.org\/\" target=\"_blank\">Ethereum<\/a>, <a href=\"http:\/\/www.ibm.com\/blockchain\/\" target=\"_blank\">IBM <\/a>and <a href=\"https:\/\/bitcoinmagazine.com\/articles\/intel-joins-blockchain-technology-race-forms-special-research-group-1426794591\" target=\"_blank\">Intel<\/a>, all of which have developed such technologies either as open source projects or for enterprise. \u00a0Some of the <a href=\"http:\/\/www.forbes.com\/sites\/laurashin\/2016\/03\/03\/bitcoin-technology-tested-in-trial-by-40-big-banks\/#6af1ec4f3d97\" target=\"_blank\">banks participating in the trial<\/a>\u00a0are:\u00a0\u00a0Bank of America, Barclays , BBVA, Bank of New York Mellon, Citi, Deutsche Bank, JP Morgan, Goldman Sachs, HSBC, Morgan Stanley, State Street, and Wells Fargo.<\/p>\n<p><a href=\"http:\/\/www.money2020.com\/speaker\/adam-ludwin\" target=\"_blank\">Adam Ludwin<\/a>, CEO of Chain, <a href=\"http:\/\/www.ibtimes.co.uk\/r3-completes-trial-five-cloud-based-blockchain-technologies-40-banks-1547260\" target=\"_blank\">said that <\/a>&#8220;by undertaking initiatives such as this one, R3 is further accelerating the adoption of blockchain technology by demonstrating, instead of simply asserting, the commercial advantages of this emerging approach to financial services.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fblockchain-banks-begin-to-experiment-with-blockchain-distributed-ledgers%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" 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