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BankThink blockchain technology will let banks become what they ought to be

By Press Release | 27 December 2024

Originally published on American Banker on December 26, 2024

As we look toward the future of banking, the concept of trust is undergoing a profound transformation. Traditional banking systems — rooted in centralized control, manual processes and intermittent audits — have long served as pillars of the financial industry. Yet, the demands of an increasingly digital and global economy are straining them. In this evolving landscape, next generation networks, powered by blockchain technology, emerge not merely as a technical tool, but represent a wider shift in how trust can be embedded directly into the structure of financial transactions.

This technology now offers a glimpse into what banking ought to be — transparent, resilient and fundamentally secure — while also offering new levels of scalability and more affordable micropayments, thanks to lower transaction costs, paving the way for new revenue streams and facilitating the growth of international transactions.

Transparency is foundational in an ideal banking system. Next generation networks, powered by blockchain technology, provide transparency in ways conventional banking systems cannot. Unlike closed databases accessible only to select insiders, blockchain creates a shared, immutable ledger that authorized stakeholders can view. Every transaction is visible and traceable, creating a transparent, unbroken chain of data that cannot be altered without leaving a record.

The level of transparency is more than a technological upgrade — it’s a shift in what trust should look like. In a world where financial institutions are under intense scrutiny, blockchain’s open and accessible architecture should set the standard for recording and monitoring financial activities. Imagine a banking environment where transaction data is consistently accurate and visible, reducing the potential for mismanagement and manipulation. This is the future of trust that the banking industry now has an opportunity to embrace, as blockchain technology has become more widely accessible.

Human error has always been a risk in banking, even with highly controlled environments. However, as financial transactions grow more complex, the potential for costly mistakes increases. Blockchain’s built-in automation processes, such as smart contracts, offer a way to mitigate these risks by enforcing transaction conditions automatically.

For example, smart contracts could trigger loan payments automatically upon verified receipt of funds, ensuring accuracy and reliability without human intervention. This automated precision should be the future benchmark in banking, where reliability isn’t left to manual processes, but reinforced by code that eliminates common errors. With this shift, banking professionals can focus on strategic analysis and relationship building rather than transactional oversight.

Blockchain’s immutability represents one of its most significant contributions to banking. Once data is recorded on a blockchain, it cannot be changed without leaving a digital trace. In an ideal banking system, tamper-proof records are essential. Traditional systems are vulnerable to manipulation through internal fraud or external hacking. Blockchain’s structure offers an inherent defense, establishing a new security baseline for banking data.

Imagine a world where every transaction is a digital fingerprint, permanently recorded and immune to revisionist adjustments. This permanence is more than just a feature; it signifies a shift in how trust should be structured. Banking records, once created, should be as reliable and untouchable years from now as they are today. For the banking industry, blockchain’s immutability promises assurance that fosters confidence among customers, regulators and stakeholders.

In the future of banking, audits won’t be periodic but continuous, thanks to blockchain’s real-time data capabilities. Blockchain creates an environment where transactions can be verified instantly, providing auditors and regulators immediate access to verified data. This continuous access transforms auditing from a reactive to a proactive process.

Rather than waiting for quarterly or annual audits, auditors and compliance officers could adopt a “real-time audit” approach, identifying issues as they arise. This should become the new standard for the banking sector, where blockchain enables immediate insight into financial activities, helping to identify anomalies before they escalate. Such capabilities redefine what modern banking oversight should be, offering auditors the tools to be more proactive and confident in their work.

Blockchain technology is not merely a way to enhance existing systems — it represents a model for what banking should aspire to be. With transparency, security and reliability embedded at its core, blockchain provides a framework that could reshape the future of banking. In a digital-first world, embracing blockchain is about more innovation; it’s about rethinking the very nature of trust in financial systems. Meanwhile, the low transaction costs associated with micropayments on next generation networks, using the latest blockchain protocols, open the door to greater financial inclusion by making global remittances and cross-border payments more affordable.

The future of banking should be one where every transaction, account and audit is rooted in a system that requires no external validation to be trusted. Blockchain offers a vision of what trust could become in the years ahead: transparent, automated, tamper-proof and real-time. As we consider the future, we should ask whether blockchain can adapt to the standards of banking and whether banking can rise to the standards that blockchain has set.

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‘We’re still not taking blockchain seriously – the opportunities in 2025 are endless’

By Press Release | 20 December 2024

Originally published on Management Today on December 19, 2024

It’s been more than a decade since Bitcoin first sparked a blockchain revolution. Globally, the blockchain market has steadily grown over the years – the market value increased from $4.19 billion in 2020 to $26.91 billion in 2024. Yet, blockchain’s potential to drive business growth in 2025 remains largely untapped, with just 3.9% of people worldwide using it.

The problem with the status quo: inefficiency, lack of transparency and risk

Modern businesses are complex, with vast supply chains, countless transactions and mountains of customer data. They must manage, process and validate this with the utmost accuracy and security. But traditional systems, riddled with inefficiencies, often fail to meet the demands of today’s fast-paced digital economy.

According to a new study from TMX Global, supply chain woes are now costing the UK economy over £12 billion a year in lost revenue due to inefficiencies. Many of these issues stem from the inability to verify data quickly and accurately across multiple touchpoints. By offering real-time, distributed data that cannot be altered or tampered with, blockchain can help businesses to trace every part of a supply chain with unprecedented accuracy. No more paper trails, no more waiting on third parties – just one source.

Supply chains are one example. When you factor in the growing complexity of compliance regulations, such as GDPR in Europe, maintaining data security and privacy becomes a major challenge for companies. Blockchain can address this by ensuring all transactions are cryptographically secure and auditable, making it easier to meet compliance requirements while boosting customer trust.

Beyond efficiency: unlocking new opportunities

Blockchain isn’t just about solving old problems. It’s about creating new opportunities. Take micropayments (a small payment, usually under £1, made online). Traditionally, businesses have shied away from smaller transactions due to high processing fees. But technology such as BSV Blockchain, a unique blockchain that has enterprise-grade applications and services, can help instant and cost-effective micropayments at scale, without the high fees.

This unlocks a new world for businesses to monetise their offerings. For cash-strapped enterprises, BSV Blockchain can provide an affordable way to tap into new revenue streams.

Blockchain has the potential to revolutionise how businesses manage cross-border transactions. Despite the UK processing over £87 trillion in cross-border payments a year after adopting ISO 20022 – a global standard for structured financial messaging – businesses still endure lengthy delays and high costs when transferring funds internationally, as highlighted by Bank Underground.

Blockchain can address these inefficiencies by removing intermediaries like banks, enabling businesses to reach global markets directly, in real-time, and at significantly lower costs. This is especially transformative for cost-conscious SMEs seeking to reach new customers beyond their home market.

Another area where blockchain is showing tremendous promise is in data-sharing ecosystems. In healthcare, for example, blockchain creates secure, transparent networks that allow organisations to share patient data across various institutions, with both strong privacy and accessibility. Siloed data creates inefficiencies and increases the risk of errors; blockchain can offer a much-needed solution.

Sustainability: blockchain’s role in a greener future

By enabling greater supply chain transparency, blockchain allows companies to track the environmental impact of their products in real-time. A fashion retailer can trace every step of their garments’ journey, from raw material sourcing to production and shipping, ensuring their sustainability claims are verifiable.

Blockchain’s role in carbon credit markets is another promising area. A carbon credit market is a system designed to reduce greenhouse gas (GHG) emissions, providing economic incentives for companies, organisations and even governments to lower their carbon footprint. The UK government has committed to achieving net-zero emissions by 2050: blockchain can help create transparent and secure carbon credit trading platforms. These systems validate credits, reducing the risk of fraud and making it easier for businesses to offset their carbon footprint.

Also, by reducing inefficiencies and eliminating intermediaries, blockchain helps businesses reduce their overall carbon footprint. Just think of the energy saved when eliminating the need for paper records, redundant data storage and inefficient payment systems! It’s not just about doing business better – it’s about doing business more sustainably.

The competitive edge

In 2025, our view is that the companies that have started integrating blockchain into their operations have a significant advantage. They offer more transparent services, streamlined operations and tap into new markets with innovative offerings. We believe these are the companies that will not only survive the next few years – they’ll thrive.

Those that hesitate risk being left behind. The blockchain revolution isn’t coming – it’s already here. For business leaders, the opportunity is clear: invest in blockchain today to secure your place in tomorrow’s economy.

For more information about BSV Blockchain and how it can help address your business or government needs contact us here.

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Taking core banking & payments to the next level: leveraging blockchain for unbound scalability & trusted audit trails

By Press Release | 19 December 2024

Originally published on Tech Bullion on December 18, 2024

The financial industry is at a pivotal moment. Core banking and payment systems face mounting pressure to evolve in response to challenges such as scalability, transparency, and trust. At the same time, blockchain technology, which was once perceived as complex or risky, is emerging as a transformative solution to these challenges. Secure, time-stamped networks can revolutionize core banking by addressing fundamental issues of data integrity, auditability, and accountability.

Current Limitations in Core Banking and Payments

Core banking and payment systems struggle with trust and transparency issues, particularly when it comes to secure data handling, auditability, and fraud prevention. These challenges are compounded by the sheer volume of transactions and data that financial systems must manage. If all global annual invoices and general ledger entries were to migrate to the blockchain, a new, unprecedented scale of blockchain would be required.

Blockchain technology offers a decentralized, secure architecture that inherently addresses these concerns. By providing permanent records and transparent audit trails, blockchain builds accountability and reduces inefficiencies. It introduces speed and efficiency, while its decentralized nature eliminates single points of failure, which is a critical advantage in preventing fraud and ensuring secure data handling.

Achieving Scalability with Blockchain

Breakthroughs in technology are solving scalability challenges in core banking systems. BSV Blockchain, powered by Teranode, for example, leverages decentralized infrastructure to deliver unparalleled transaction throughput. Recent advancements have demonstrated its capability to process over 1 million transactions per second, a milestone that far exceeds traditional financial systems’ capacity.

Interoperability further enhances blockchain’s scalability. By uniting decentralized financial systems, blockchain facilitates seamless data flow between banks, payment providers, and other financial institutions. This integration not only improves operational efficiency but also lays the groundwork for a unified, global financial network.

One company that exemplifies blockchain’s potential to transform core banking and payment systems, achieving unprecedented scale and efficiency, is Aerospike. The high-performance database provider, in collaboration with AWS, has successfully showcased the ability to process more transactions in a single hour than Visa typically handles in an entire year. Notably, Teranode supports transaction volumes at an exceptionally low cost—just $0.000015 per transaction—making blockchain both scalable and economically viable. This capability sets the stage for transforming core banking and payment systems at a scale never seen before.

Strategic Shifts Enabling Trusted Audit Trails

One of blockchain’s most transformative features is its ability to create immutable records. Every transaction is permanently and securely logged, forming transparent and secure audit trails. This capability ensures data integrity, reduces fraud, and builds trust among stakeholders.

Secure, time-stamped servers further enhance blockchain’s reliability. By offering next-generation networks that guarantee transaction accuracy, blockchain empowers financial services to operate faster and more efficiently. These innovations set a new standard for trust and security in the digital economy. Blockchain adoption no longer requires steep learning curves or costly overhauls—solutions like those delivered by BSV Blockchain, powered by Teranode, provide scalable platforms that integrate seamlessly with existing banking systems.

The Future of Blockchain in Banking

Looking ahead, blockchain is poised to play an integral role in the future of core banking and payments. As financial institutions recognize its potential, adoption will accelerate, paving the way for greater trust and efficiency across the industry. However, this transition requires strategic investments in infrastructure, education, and collaboration among stakeholders. Blockchain technology represents the next step in this evolution of core banking.

This vision aligns with the broader concept of the Metanet—a revolutionary approach to integrating digital and economic activities. The Metanet represents a shift toward a more inclusive, efficient, and dynamic online ecosystem, where blockchain serves as the foundation for secure and scalable financial transactions. In a Metanet-enabled world, webpages, services and every single piece of online data can be easily accessed and monetized in a direct-to-consumer model, delivering a value-based internet ecosystem and enabling seamless global data and commerce connectivity.

Thanks to the latest breakthroughs in blockchain technology, this vision is now starting to come to life, as forward-looking financial service developers begin to build on the blockchain. With solutions from BSV Blockchain, powered by Teranode, financial institutions can embrace scalable, reliable platforms that set a new benchmark for efficiency and accountability.

The future of core banking lies in unlocking blockchain’s full potential, creating systems that not only support today’s demands but also anticipate long-term needs. As we move toward a more connected and transparent financial ecosystem, blockchain will play a key role in driving progress.

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