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finance
From today’s Initially, the financial institutions which one can say that it started in
perspective, the regarded with doubt the concept that 2013/2014, has expanded to techno-
market entities see the idea of the bitcoin and blockchain logically advanced solutions which
this technology as an technology was based on, in the period enable application of this technol-
instrument which can when they emerged, and they avoided ogy in the trade of assets which have
improve the efficiency it with an excuse that this technology material form, contracting, national
of the markets they is too complicated and risky to be im- and international payments, reg-
are already working plemented. However, as this technolo- isters where ownership of various
on, however in the gy developed in the past 5-6 years, the types of assets is registered, settle-
background this number of entities increased, some of ment of transactions with securities
technology hides some which are large global financial insti- and a sequence of other activities
unlimited opportunities tutions, which are starting to perceive and activities where this technology
which can lead to or already perceived its potential. In can be applied. In this regard, there
formation of new this regard, there are already efforts are already more investments and
markets and trade of to integrate it in a legal framework partnerships of the large financial
assets for which today which will enable the companies to institutions with FinTech companies
one can hardly imagine use its benefits in the direction of which develop blockchain technolo-
that there could be a improvement of efficiency, that is, gies. Hence, Santander Bank invested
market at all and that reduction of operating costs. Such 102 million US dollars in Ripple, in a
they can be used for efforts led to so called permissioned solution related to international pay-
active trade ledgers which are based on the same ments. This solution provides auto-
blockchain technology, that is, the so matic selection of market makers of
called blockchain 2.0 emerged. the market of currencies which have
the best listing of courses. Goldman
Unlike the technology that bitcoin Sachs invested 50 million US dollars
in permissioned ledgers is based on, in Circle, in a solution which enables
computers in the network through purchase and sale of bitcoin crypto
which creation is performed of the currency. Furthermore, USB started
blocks within the chain of blocks be- a partnership with Clearmatics in or-
come so called trusted nodes which der to create a system for settlement
can be held responsible in accor- of securities which is based on block-
dance with the legal framework for chain technology.
the transactions within the network.
Also, in the permissioned ledgers, the Blockchain technology, although it
participants who initiate and receive exists for more than eight years, is
transactions should necessarily be still a rising innovation. Although
identified in the inclusion in the net- the financial industry increasingly
work, similar to the way clients today perceives the benefits of the use of
are identified when opening a bank this technology, probably it will take
account. another 5 to 8 years when additional
efforts would be required in order to
In permissioned ledgers which are make its application massive. From
usually owned by one legal entity or a today’s perspective, the market enti-
consortium of legal entities, the pro- ties see this technology as an instru-
cess of validation of transactions be- ment which can improve the efficien-
fore they are published in the chain cy of the markets they are already
of blocks is controlled by a previously working on, however in the back-
selected set of accurately identified ground this technology hides some
participants in the network. Hence, unlimited opportunities which can
one can freely conclude that the con- lead to formation of new markets and
cept of permissioned ledgers copies trade of assets for which today one
the high level of transpa rency and can hardly imagine that there could
responsibility which exists in tradi- be a market at all and that they can
tional banking systems. be used for active trade.
The focus in blockchain 2.0,
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