Once upon a time, dinosaurs dominated the world. They were immense, a symbol of power. The term is found in the economic parts of daily newspapers more frequently than in all history and biology books. It became a popular paraphrase for traditional, huge companies – especially in the banking landscape.
But there is another language area in which “Dino” appears statistically, significantly and more frequently: in the slang of our youth. Here he stands not so much for the great, the mighty, but above all for the old and the overthrown – all that will no longer be the same.
As we all know, the size and power of the dinosaurs may change in their time. According to the theory, a catastrophic meteorite had an impact on the Earth, which changed the global environmental conditions at a pace to which the giant beings simply could not be adapted to.
We now know the rapid changes from the computer industry and the Internet. Is the next meteorite slumbering here with the blockchain technology? For the Banking world? Death for all dinos in it?
Trust in banks at the low point
This headline has repeatedly been found in the mass media since the financial crisis in 2008/2009. In the large picture, trust in the banks therefore continues to grow. The interstitious depressions – whether liquidated real estate funds, Libor scandal, billions of legal proceedings by German banks in the US, lousy notes from Stiftung Warentest in the consultation or lastly negative interest and now also fees for cash withdrawals – were always only local extremes in retrospect.
The big trend in confidence is still pointing downwards. The next low point is probably just a matter of time. Trust has always been the most important currency of the banks.
Blockchain technology – the end of banks?
The blockchain technology is a special form of a database. It is protected against subsequent manipulation of the data stored in it by recursively generating the individual data records, ie each data block (“block”) is based in part on a functional derivation of the previous data record.
The individual data records thus form a chain (“chain”), in which one can not later manipulate a link (data record), without the entire following chain is also changing with it.
To Blockchain technology, this type of database is then replaced by a decentralized storage.
The entire chain is stored on all nodes (participating computers) of the network. It is open to the public. The current block is known to each participant in the network.
Depending on the protocol used, you would have to manipulate a certain percentage of all locations at the same time in order to enforce manipulation throughout the entire network. For example, this can be seen as excluded in the Bitcoin network with over 6,000 network nodes and a 50.1% majority limit.
The following blocks are generated by consensus procedures. Only when the network has agreed on the validity of the next block is the chain expanded by one link. In these new blocks (depending on the protocol) various facts can be written down, for example, ownership.
With the Blockchain technology, the need for a central authority, which certifies the credibility of transactions, can be avoided. Transactions are decentralized, by consensus.
Applications for this are numerous. A land register without a land registry, a patent register without a patent office, stock depots without a central depositary and exchange trading without central clearing services.
Or even bank accounts and payment transactions without banks. The Blockchain technology makes all this possible.
A well-known example is the currency Bitcoin. Fintech startups conquer the financial sector
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Categories: Crypto Currency