Blokchain forces to reconsider the approach to interbank transactions

Distributed registry technology is most effective for a business process whose members have equal rights but do not trust each other to the end. An example of such a model is credit and payment transactions between banks.



The crisis of 2008 proved the presence of systemic risk in the interaction between banks. Then out of mortgage loans of individuals packages were formed, which banks then sold each other. The value of derivatives related to them - derivatives many times exceeded the main market. The financial institutions that formed the mortgage loan packages looked at them through their low average risk. And the assessment of the composition of a loan portfolio was not actually carried out.
')
As part of the above business processes, the technology of the distributed registry would give banks the opportunity to form their portfolios from a set of individual loans, information about which is recorded and is in common access in the blockchain.

Analyzing the characteristics of each individual loan, you can get an answer to the question about the presence or absence of debts, as well as determine the credit score of the debtor. With this approach, financial institutions could better control the composition of their portfolios, and the open market mechanism would determine the optimal value of each asset of this type during trading on the interbank market.

Thanks to the open access to the data on operations recorded in the distributed registry, it will be possible to solve the problem of incorrect risk analysis. Within this model, operations data can neither be hidden nor replaced. Since a distributed registry is maintained by several peers, any data corruption becomes noticeable to all system participants at once.

Since the blockchain itself is a type of database, its work cannot go beyond the legal field. Therefore, to talk about the violation of the law when using technology is meaningless. The regulator may have questions only in relation to the tokens issued on the blockchain, which are subject to legal rules that establish currency control procedures or rules for the operation of the securities market.

For government agencies, distributed registry technology is a tool for coordinating the banking system. Closed (“permissioned”) registries can be regulated by central banks, which determine the level of access of system participants. With this approach, it becomes impossible to hide any details of operations in the interbank loan market.

The blockchain platforms existing on the market today are likely to have the greatest impact on changing the approach to the implementation and accounting of interbank transactions. A number of similar projects offer a ready-made set of solutions. Here are just a few examples:

One of such cases is EmerCoin platform, which has its own cryptocurrency and provides users with a complex of blockchain solutions in the field of advertising, Internet security, and accounting and storage of information.

SmartCoin tokens of the Bitshares multi-functional blockchain platform. linked to fiat currencies, such as the dollar and even gold. Among the solutions provided by Bitshares, it is worth highlighting the tools for recurring payments and affiliate programs.

Our blockchain-platform Waves provides projects with a set of solutions for organizing campaigns to attract collective funding through the production and sale of their own tokens. We can say that Waves is a digital ecosystem that allows any startup to organize its own ICO. The attraction of financing is possible both in ordinary currency (USD, EUR, etc.) and in cryptocurrency (BTC, ETH, etc.).

Transactions with tokens (purchase, sale, exchange or transfer) are carried out within the blockchain-infrastructure Waves. In case of successful development of the project, the cost of tokens increases and holders can sell them on the open market at a higher price.

Both commercial and charitable projects can launch their own tokens on Waves and launch an ICO campaign.

Waves blockchain ecosystem is decentralized. Her work is provided by many miners. This approach makes the entire system stable and its processes transparent.

For the banking sector, applications based on the open code of the blockchain platform can be developed on the basis of Waves.

In the future, as part of the Waves blockchain platform, our team plans to implement a reputation system. Due to its use, it will be possible to determine the reliability of a bank in the interbank loan market.

Another application for the Waves blockchain is money transfer. In this area, our team is already negotiating with a number of Russian and foreign banks, as well as money transfer systems.

For security solutions that operate on the basis of technology distributed registry, it is important the absence of a single center that affects the operation of the entire system. An approach that was not focused on creating a mechanism for multi-step confirmation of transactions and assumed that only a limited circle of people could have access to funds led to the collapse of a number of cryptocurrency projects (primarily exchanges). Using the blockchain is safe while maintaining distribution and the lack of a single center in the system that is vulnerable to both external and internal influences.