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TechTalk Blog - Global Tech Firms Race to Create Blockchain "Ledger in the Cloud" Solutions Changing Transparency & Accountability for World of Finance

By David Colgren posted 12-09-2015 10:06 AM

  

Interesting story today in Bank Technology News about software companies racing to create BLOCKCHAIN technology “In-the- Box” to help banks and companies use this new disruptive technology that promises to provide “a shared ledger that can be used to track things like asset sales, payments, loans, transactions and contracts. Such ledgers are seen as a way to make finance more resilient (since distributed systems have no single point of failure), efficient (since they remove duplication of effort), and transparent/accountable - risk prevention (since they are auditable in real time).”

Technology-services companies such as Microsoft and Deloitte now offer "block-chain-as-a-service" to help banks incorporate the technology into their businesses. Banks are attracted to block-chain technology for its efficiency, resiliency and transparency, but they've faced deployment challenges.

Securities regulators such as IOSCO see this as a real game-changer for the regulatory reporting process as well.

“Regulators hope that it could revolutionize financial infrastructure, potentially providing them with an omniscient and instant picture of every trade in a market, complete with information about price and the identity of all parties involved.”

The head of research at R3 CEV in Australia says that a blockchain project backed by 30 of the world's largest banks has a development team in London coding the fabric for an open-sourced, generic "shared ledger", which banks want to use to reduce reconciliation costs – creating a global blockchain bank that could be launched within a year.

Stay tuned as we hear more about blockchain and the evolution of a “Ledger in the Cloud” and how this new, disruptive technology could impact the work the management accountant does within an organization.

 

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