Wall Street has had a less-than-stellar relationship with Blockchain technology. With large banks and officials denouncing the relatively new technology, it does not seem like they will be accepting of it anytime soon, or will they? Bank of America recently pursued a series of patents to build upon the technology, and it only looks like it will grow as time goes on.
One of the main struggles that the banks are having with blockchain technology is the issue of privacy. Traders often like to keep their positions secret, so that groups of people will not get in on their trades and ultimately affect the market outcomes. Blockchain does provide the presence of immutability, but there is not complete anonymity, which would be key for large-scale financial companies to accept it.
One upgrade on the system of blockchain, may make its adoption possible in the mainstream financial world. According to an article written recently about the Byzantium upgrade to the blockchain network, “its ability to reshape vital financial market functions like clearing and settlement has always hinged on whether banks can keep customer and proprietary data secret. Zero knowledge proofs, a theoretical possibility for decades, are now a reality, letting transactions be verified without the need to share any of the underlying data.”
The system of blockchain has been around for quite some time now, but has only recently seen its day in the world. With the popularity increasing of cryptocurrencies that run on the platform, it is only a matter of time before the world begins to use it for other purposes as well. Blockchain has a massive amount of potential to help across the board in many markets, but only if the proper steps are taken to legislate it, as well as have the public adopt it throughout.