The World Trade Organization has recently release a report saying blockchain technology, specifically Ripple, could lead towards a dramatic and disruptive transformation on the global financial system.
This sizable report named The future of world trade: How digital technologies are transforming global commerce states block chain has “the potential to profoundly transform the way we trade, who trades and what is traded.” This report concentrates on Ripple as the most likely to radically impact on how financial institutions will move money around.
“Ripple has ambitions to circumvent the correspondent banking model through its distributed ledger platform. It gives banks the ability to convert funds directly into different currencies in a matter of seconds and at little to no cost, without relying on correspondent banks.”
“The company has licenses with more than 100 banks and financial institutions, but it seems that only a limited number of large operations have taken place to date. Banks are still testing the system.”
The report also includes other cryptocurrencies such as Bitcoin and Ethereum, pointing out their contribution and pioneering the emerging tech that’s highly resilient to cyber attacks, and call attention to scaling challenges that still remain in order for them to challenge major financial businesses like Visa.
“Firstly, scalability of the main public blockchains remains limited due to the predetermined size of blocks and to the level of energy required to power the networks. The Bitcoin platform, for example, handles about seven transactions per second on average and the public blockchain Ethereum twice as many, while Visa can process 2,000 transactions per second, with peaks of 56,000 transactions per second.”
The full report is definitely worth a look over and goes in to interesting points on the potential change our financial system shall undergo in the coming years. If you wish to read the full report simply follow this link.
CryptoMeNow is on a mission to make cryptocurrency easy for everyone to understand.
Our core product is our free daily newsletter where we send you need to know information about cryptocurrency that everyone can understand in less than 3 minutes a day.
Please subscribe to our newsletter and share it with your friends! You can subscribe directly at CryptoMeNow
You can also follow me on Twitter @itswilson8