Composing on the bank’s official website, ABN AMRO Head of Innovation Arjan van Os, commends the blockchain innovation behind Bitcoin in a short article entitled “The Next Big Thing.”
Dutch state-owned ABN AMRO Bank is an item of a long history of mergers and acquisitions that date to 1765, making it one of the oldest active banks. In 2007, ABN AMRO was the second-largest bank in the Netherlands and the 8th largest in Europe by possessions. Then the bank was gotten by a consortium of international banks and eventually bailed out and nationalized by the Dutch government, which expressed objectives to bring back private ownership at due time.
“Attach your seat belts,” says van Os. “What the Web has actually done for info and the method we interact, the blockchain will do for value and the way we take a look at trust. The financial world is going to flip upside-down.”
The post summarizes the distinct benefits of blockchain-based monetary innovation, which today are recognized by the mainstream monetary facility: faster and much cheaper deals, which are made fundamentally safe and secure by the dispersed, decentralized nature of the blockchain.
“Each node preserves an identical copy of a shared deal ledger– the so-called ‘single source of reality,'” says van Os. “As transactions happen, the nodes communicate with each other to verify that the deal stands. If the ledgers don’t match up, the transaction is declined. That essentially eliminates the single point of failure: If one server is hacked, the other nodes will certainly acknowledge the intrusion and obstruct the hacking effort. The more nodes included to the Blockchain, the more security the transaction has.”
Smart contracts represent a disruptive innovation with a huge potential. In 2001, famous cryptographer Nick Szabo spoke of wise contracts that solved the issue of trust by being self-executing.
“Through particular scripts in the blockchain, all conditions of any legal arrangement can be saved, verified and protected within the system,” states van Os of clever agreements.
Next-generation “Bitcoin 2.0” platforms such as Ethereum, set up to go live in a couple of weeks, implement wise contracts. According to an Ethereum representative, global banks and financial corporations are showing interest in Ethereum.
Interestingly, van Os does not have much to state about the stylish debate about the blockchain as a system vs. bitcoin as a currency– the term “bitcoin” is never ever made use of in the post, which seems to imply that van Os thinks about the bitcoin currency as an early, incidental and not extremely interesting application of the blockchain. On the other hand, he clearly states that the blockchain innovation will change everything in the financial world, and banks need to get on board.
“It’s clear to see that blockchain has the potential to turn the monetary world upside-down,” states van Os. “So, exactly what can we do? How do we stop ourselves from becoming obsolete? The answer is fairly easy. We learn. We explore. We examine. We open ourselves up to change, and embrace all the possibilities that depend on shop for our futures. We not just require to change the way we do company, however the type of company we do.”
The ABN AMRO Development Center, opened in September 2013, explores trends, issues, and solutions pertinent to the bank’s company, and organizes numerous networking occasions for customers, partners and personnel. One of these routine events is Start-up Friday, held once a month. A video recording of a recent Startup Friday, committed to the blockchain, is available online (partially in Dutch).
The post The Blockchain is the Next Big Thing, states Dutch Bank ABN AMRO Executive appeared initially on Bitcoin Publication.