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fРiУnБaРnИcКeА
Igor Davkov
The holds a PhD in the field of
monetary economics and finance
HOW THE BLOCKCHAIN
TECHNOLOGY CAN CHANGE
THE FINANCIAL WORLD
WHERE WE LIVE
The blockchain technology is a P2P will end on the account of the credi-
software technology which protects tor, today so called third trusted party
the integrity of the electronic infor- is used, that is, an institution which
mation. Approximately eight years disposes of information and/or can
ago, after this technology was discov- confirm the identity of the parties
ered, for the first time it was used for among which some payment or set-
the creation of an alternative digital tlement is performed. These are the
crypto currency Bitcoin. However, the banks, they have information about
concept of the blockchain technol- the condition of the funds and they
ogy which in the background is used can confirm whether a specific pay-
for transfer and for validation of this ment can be performed or not. Con-
crypto currency can be used as a tech- ceptually observed, what banks do, is
nology for many other purposes such also done by the depositories in the
as: identity validation, composition, case of securities, in the case of sign-
signing and validation of agreements, ing of the agreements – the notaries,
records of change of ownership of real and in case of change of ownership of
estate or change of ownership and real estate – by the cadastres, all of
settlement of securities. What value these institutions have information
and what physical assets will be rep- about the identity of the owners of
resented by the crypto currency is specific tangible or intangible goods
something which the participants can which are actively traded in the mar-
agree with a consensus in the systems ket every day.
which are based on this technology.
The daily number of transactions
Today we use banknotes and coins of any type of assets according to the
which once we receive or give the,, we scope and complexity is becoming in-
know that we received them, that is, creasingly complex and significantly
we gave them some value. Conceptu- expensive. According to a data pub-
ally, the same thing happens when lished by the prestigious newspaper
we perform electronic payments from “The Economist”, it is estimated that
our electronic banking, when we with- the banks in the world annually charge
draw money from an ATM or when we 1.7 trillion US dollars in the name of
pay on a POS terminal with our debit fee for payments, which in relation to
or credit card at a specific retailer. In the value of the world economy, that
order to make sure that the transac- is, the global GDP is approximately 2%.
tion will really be settled, that is, the
money from the account of the debtor Instead of transferring the infor-
mation for the payments through the
34 November 2016
