Blockchain holds the potential to "break and remake" any data-driven industry. Accounting certainly fits the description. It won't happen tomorrow, but in the not-very-distant future, blockchain is sure to radically change the way accountants crunch the numbers.
Professionals in the technology or banking industries will have heard about bitcoin and blockchain by now. But they might not understand the distinction between the two. A recent webinar explained the difference — and outlined the likely future of each technology.
Distributed ledger technology undoubtedly has characteristics that will improve payment processing efficiency and security, but there are steps that financial service providers need to take now to mitigate risks involved in using new technologies.
The banking industry has always tended to be conservative and extremely cautious with any kind of experimentation. This is certainly true with blockchain. But it's also true that banks realize the technology does have applicability, and cannot be ignored .
There are countless proof-of-concept projects competing for investors' money and resources. Some will stand the test of time, but others will prove to be overhyped and underwhelming when it comes to market acceptance and performance. We asked experts for their thoughts on which blockchain projects currently look most promising.
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.