Financial sector expands use of blockchain databases

Survey shows 65 percent expect to use blockchain distributed database software within three years

Financial sector expands use of blockchain databases
Credit: Deavmi

Banks and financial markets are adopting blockchain distributed database software for their payments and lending services at a pace faster than once expected, according to a survey of 400 such businesses globally.

Blockchain software is the basis of bitcoin, first developed in 2009, and acts as an automatic public ledger for transactions, primarily financial transactions.

The survey, conducted by a research division of IBM, found that 15 percent of the banks and 14 percent of financial market institutions intend to implement full-scale, commercial blockchain-based services in 2017.

Mass adoption of blockchain isn't far behind. The survey found about 65 percent of the banks expect to have blockchain in production within three years.

Blockchain is expected to be used in financial services for retail payments and consumer lending services, while also providing reference data.

While IBM already offers its own flavor of blockchain for customers, Mastercard said this week it is experimenting with the technology. Mastercard could offer blockchain functionality in its open Application Programming Interface tools to be used by third-party developers in building their own programs and apps, a Mastercard executive said.

This story, "Financial sector expands use of blockchain databases" was originally published by Computerworld.