Blockchain : Blockchain-Powered Payment Netting Service
One of the biggest problems which the pre-blockchain internet had not been able to solve was Foreign Exchange Settlement. The process was fragmented, tedious and rather expensive. Enter blockchain, and the process is going to undergo standardisation which will make it seamless, faster, and less expensive. New York-based global multi-currency cash settlement system, CLS, is all set to launch a blockchain payment service for banks in the coming months. It has been working with **#IBM** to introduce the blockchain-powered payment netting service, which is in its final stages of testing. Seven banks are ready to sign up on to the system initially. However, some of the bigger banks are still not entirely confident about the move as they feel that the technology has not been tested sufficiently for settlement and safekeeping of securities. Each development in the blockchain space is its validation as the future of the internet. SWIFT, the enabler of the worldwide exchange of information on financial transactions, recently reported that its blockchain pilot for bank-to-bank transfers went “extremely well”. **#Blockchain** is swiftly on its way to becoming a norm across industries.
What is the Blockchain?
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency’s block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.
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