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Blockchain is Ecosystem of Modern World – Deltec Bank knowledge series

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Blockchain is Ecosystem of Modern World – Deltec Bank knowledge series

September 16
23:28 2019
Blockchain is Ecosystem of Modern World - Deltec Bank knowledge series

DeltecBank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

Blockchain is an important new method of transferring money and in this article, we will take a look at how it is used currently in the banking world.

Blockchain was originally created for use in the digital currency world of Bitcoin. However, it is now used in a number of other ways.

Blockchain technology works by time stamping a managed group of computers that is not owned by one entity. They are bound together using a principle known as cryptograms, which is effectively a system of chains or ‘Blockchain’.”  

Bitcoin has used this technology for some time when dealing with any monetary transactions, but let’s take a look below at one of the most simple ways blockchain can help us in our everyday lives.

Where might Blockchain be used?

When you and a family member or friend are transferring money between accounts, the first step for you is to contact your bank and request them to transfer the money to the account of your choice.

When the bank transfers the money into your requested account, the bank holds an entry within a register of bank transactions. In order for the transfer to be properly accounted for, the entry needs to be updated on both the senders and the receiver’s account.

This appears to be a simple enough process. However, there is a problem with this entry system. Let’s take a look broke at how blockchain can help with the issues created when transferring money between accounts

Why is blockchain effective in transferring funds?

Manually entering transactions on the senders and receivers accounts can easily be changed, tampered with, or edited. This is where blockchain can help.

Now we have seen in simple terms exactly what blockchain is, let’s look at why it is deemed as such a revolutionary process.

What Are the Benefits of Blockchain?

As we have seen above, blockchain is a method of recording data using a timestamp. One of its superior benefits is the fact that it does not have a defined authority, and everyone using it is accountable for any actions they undertake.

Anything that is built on blockchain technology, such as transferring funds from one bank to another, is transparent, so data is not able to be edited or changed.

It is a very simple but incredibly effective method of passing along information in a manner that is completely safe and fully automated.

Let’s take a look below at how a blockchain is created.

‘It is a very simple but incredibly effective method of passing along information in a manner that is completely safe and fully automated.’

How does blockchain work?

The first person using this ingenious system creates a block. The block is then verified by a vast number of computers around the net.

This block is then verified by those computers and then added to a chain, which is stored on the net and creates a unique record with its own individual history.

If anyone changes, edits. or otherwise tampers with this record, the entire chain is falsified and the chain would be changed.

Now we’ve looked at some basic principles of blockchain and his it can help to make our banking processes more stable and secure, Let’s finish on a quote by the founder of Bitcoin chaser, Marc Kenisberg, to demonstrate how important blockchain will continue to be in the future.

‘Blockchain is the tech. Bitcoin is merely the first mainstream manifestation of its potential.’ – Marc Kenigsberg, founder of Bitcoin Chaser

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

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