There is a lot of buzz on the possibility of incorporating blockchain technology into the financial industry, beyond cryptocurrencies such as Bitcoin. According to the research of IDG Connect in their paper called, “Catch me if you can: A c-suite guide to blockchain,” they state that banks are looking at potential ways to use this technology. So the question is: Is your credit union behind the eight ball in adopting this new, cutting-edge, disruptive technology? Based on this paper, the answer is no.
A simple explanation of blockchain is this this: a ledger system that has an easily accessible history of all recoded transactions/entries from inception to its current state, and each of the entries are safe from being altered. IDG explains it as, “It is like a cloud version of an excel spreadsheet that is always accurate and always up-to-date. This means you can check a financial transaction or record – such as education qualification or medical notes – and be certain you’re getting the right answer.”
This sounds good, right? While there is great potential in many different use cases, they continue to say in their paper that, “despite the extensive potential for distributed databases, they are still slower and more expensive to use than regular databases. The hype surrounding blockchain has meant that some organizations have attempted to shoehorn use cases where they’re simply not necessary. The big picture potential around all this is still a very long way from being realized.”
However there is some movement happening right now in the credit union industry. The CU Ledger blockchain project is exploring future possible innovations. Information on the distributed ledger can be found at culedger.com/about
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To learn more about technologies that are currently being adopted and implemented by credit unions, reach out to Pure IT Credit Union services at firstname.lastname@example.org or 281-378-7777 to discuss possibilities and how we are helping other credit unions.