The blockchain revolutionize the world of banking. Part Two
No intermediary is needed
Because safety is guaranteed by ALL users at the same time – there is no need for other intermediaries or central clearing system. You can always send bitcoin packages worldwide directly to a recipient via blockchain system without having to wait for an approval or pay any transaction fees.
New financial instruments can be created
Transactions in the chain - the information blocks - contains not only Bitcoins. They also accommodate small data files that can contain complex electronic contracts. This means that the world banks can build new financial instruments and transfer them to another player in real time.
"The future is only limited by the imagination. You can use the blockchain to create derivatives even in the oil market "said Alexander Bottema.
All forms of securities can be transferred directly
The consequence of #4 is the following - all forms of securities can be transferred between banks in the world.
"You can take a thousandth bitcoin, for example, and use it as a marker for some other. Then it is not the value of bitcoin as control, without contract bound to it. In this way, banks can easily send equities, options, real estate contracts or whatever together in the world, " says Alexander Bottema.
The system can work even without Bitcoin
Today, bitcoin is the only virtual currency which has been widely publicized in order to get the blockchain to work on a broad front. But technically, the system is not dependent on this particular virtual currency.
"A blockchain must have an inherent cryptocurrency. Bitcoin is the dominant currency and the only interesting to wide public right now. But there are other options like litecoin and Ethereum that works on a smaller scale today, " - claims Alexander Bottema.