Blockchain is best suited for environments where there is shared information and distrust or a need for validation between two parties — which makes financial services providers prime candidates for its use in at least four areas.
Blockchain continues to win mindshare among fintech executives. The naysayers' position is starting to soften, and the viability of blockchain as a means to exchange information between untrusted parties has begun to receive recognition from major banks.
It's rare for a day to go by without a bank, startup or financial firm jumping on board the blockchain hype train. But before we get too excited, however, we need to understand the basics of the blockchain.
The proliferation of fintech solutions presents a remarkable opportunity for small and midsize financial institutions not only to compete on a level playing field with the big banks but also to leverage their exceedingly hard-to-compete-with strengths to win new customers.
Marijuana is now legal in several states, but financial institutions currently do not allow their credit or debit cards to be used for purchasing cannabis. Thus, kiosk manufacturers are turning towards cash management solutions and bitcoin to provide secure payments for cannabis retailers.
Banking giants are moving toward the blockchain at an increasingly aggressive pace. But, are they right for the blockchain? Will their efforts translate into apps? What does it mean for the bitcoin industry?