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Blockchain Tech Can Save Banks $20B a Year

• NeutronBoy 11y ago
  As someone who's worked in banking tech, I can assure you the banks know that the infrastructure and tech they have isn't cheap to run, and that it could be done cheaper. The problem is that the immense complexity that exists in these environments makes it so incredibly complex and costly to migrate that it's almost impossible to do. One of the biggest banks in Australia has spent over $1 billion [1] on upgrading its core banking system and it's still not done. It's not just the tech. It's not just the account data. It's complex business rules, it's reporting (internal and external), it's legislative requirements, it's integration with thousands (not exaggerating) of other systems internally, up to hundreds externally, it's about legacy products from 30 years ago which are still on the books, etc. [1] http://www.itnews.com.au/News/256341,cba-goes-real-time-as-part-of-core-banking-upgrade.aspx http://www.itnews.com.au/News/256341,cba-goes-real-time-as-p...
  • cdvonstinkpot 11y ago
    Sounds like a startup opportunity to build what they need.
• thomasfl 11y ago
  Could someone on HN point me to a good article or vidoe on blockchain tech?
• dpc_pw 11y ago
  Being Bitcoin entusiast, IMO blockchains provide no benefits for banks. Blockchain is actually very ineffective protocol/data structure, and the reason Bitcoin uses it is because it provides pseudo-anonymous network that removes need for trust. Also Blockchain can be trusted only combined with underlying unit of motivation and currency: Bitcoin (or other coins). Banks don't need pseudo-anonymity and can provide some level of trust. Protocols like Stellar / Ripple / Open Transactions and other non-blockchain digital accounting technologies are much better suited for banks.