Goldman Sachs Sees Great Potential In Blockchain Technology

Goldman Sachs has been embracing the bitcoin’s underlying blockchain technology. The bank joined the blockchain consortium led by financial innovation company R3 and has recently filed a patent application for “Cryptographic Currency For Securities Settlement”.

In a research note titled “Emerging Theme Radar” sent to its clients on Wednesday, the bank said, “While the Bitcoin hype cycle has gone quiet, Silicon Valley and Wall Street are betting that the underlying technology behind it, the Blockchain, can change… well everything.”

Penned by Robert D. Boroujerdi, the note talks about Blockchain as an alternative to existing transfer systems. Silicon Angle provides excerpts from the note as follows:

“Once considered the underlying pipes of Bitcoin, this technology is … ushering in a new set of tools to cut costs and challenge the profit pool of the middle-man with a promise to make centralized institutions obsolete.”

“This solution promises to not just address consumer opportunities but also those for the far more lucrative enterprise.”

“[The Blockchain] has the potential to redefine transactions and the back office of a multitude of different industries. From banking and payments to notaries to voting systems to vehicle registrations to wire fees to gun checks to academic records to trade settlement to cataloging ownership of works of art, a distributed shared ledger has the potential to make interactions quicker, less-expensive and safer.”

“Bitcoin was just the opening act, with the Blockchain ready to take center stage,” he added.

The blockchain technology is a decentralized public ledger that no one person or company owns or controls; users control it directly. It is not just limited to bitcoin but has much broader applications – it has the potential to completely disrupt traditional banking system.