The banking industry has embraced the technology, with companies such as American Express, Bank of America, and Wells Fargo all using blockchain for financial products.
But what about those banks that aren’t part of the financial services industry?
In some cases, that means building their own blockchain, and those banks are starting to see more and more success.
“There’s a lot of innovation in the blockchain space right now, and I think that is good,” said Mike Bostock, CEO of Go2 Bank.
“I think we’re going to see a lot more of innovation going forward.”
For example, the blockchain is making it easier to securely track assets, including property and investments.
Bostocks startup Go2 is building a secure way for investors to deposit and withdraw money from an asset, with the ability to track transactions on the blockchain.
“We think that’s really important to our customer base,” he said.
Bostock added that the company will be using its blockchain to verify claims on customer loans and pay for payments to help customers pay their bills.
The bank has built a secure platform that allows customers to send payments through their phones or other digital devices.
The blockchain’s ability to connect to and track assets is one of the biggest advantages that the financial sector has over traditional banks.
It allows the bank to track asset ownership and access the financial information of a business, Bostanks CEO said.
In addition, blockchain-enabled services can help finance businesses and institutions build trust with consumers.
“It’s really a way to build trust between consumers and financial institutions,” he explained.
“If you can track an asset like that, that’s a pretty big deal.”
According to Bost’s company, more than 70% of Go 2’s business is done through credit cards, with more than 30% of transactions done through online banking and other financial services.
Banks are now building their blockchain infrastructure with the aim of increasing their ability to access financial data.
The financial industry has a big opportunity to improve the transparency of financial data and the integrity of financial transactions, said Alex Liao, the CEO of a blockchain startup called Blockchain.com.
Blockchain is using a smart contract called Smart Contract Smart Contracts are a type of contract that allow a party to set up an agreement with another party.
In a blockchain, the parties are no longer acting as individuals.
Instead, the contracts are written in a computer program that can be used to verify a transaction.
The smart contract allows parties to verify that the contract is being followed, and the parties can share the data generated by the transaction.
Liao said he hopes to see blockchain-based financial services flourish as more and for more companies create their own services.
“This is going from the idea that you’re going take the existing systems and put them on a blockchain and let people build the applications and use them as they wish, and then you can create an ecosystem where all those companies can operate on that blockchain,” he added.
The use of blockchain for all financial transactions is just one of several new features being built by financial companies to support their blockchain platforms.
The latest example is the Bank of England, which is building its own blockchain for its digital currencies.
“One of the big challenges in the banking world is, you have to have a trusted digital asset to be able to do transactions and the banking industry isn’t going to have that because they’re not trusted,” said Liao.
“The digital asset that we’re building is going have to be a secure, transparent, verifiable ledger, that the bank can validate and access in real time.”
Bank of America’s blockchain solution, for example, will be able track and verify transactions across the bank’s network, including on its digital currency, bitcoin.
The bank is also building a system for managing the digital currency.
“They’re building a blockchain system for how the bank handles digital assets,” said Bost.
“And they’re trying to solve a lot, like how to manage digital assets in the real world.”
“The fact that they’re building this is very positive,” said Josh Sperber, chief technology officer of BofA’s technology division.
“This is a new technology that will give them a competitive advantage over other institutions in terms of the quality and speed of transactions.”
“I think it’s going to be very, very exciting,” said Sperberg.