Banks Join With Technological Companies For Testing The Applications Based On Blockchain

Several of the world’s largest banks and technology companies are joining to test blockchain-based applications.

On Monday, Barclays, Citigroup and IBM announced that they will participate in the conceptual version of LedgerConnect interface. Reuters reports that Barclays and Citigroup are founding members and IBM is a software partner.

LedgerConnect blockchain app store will permit banks to address applications easier and faster by concentrating on making it less complicated.

Blockchains are more commonly used in cryptocurrencies such as Bitcoin, but they can also be used in other transactions such as contracts, records, and as well as in other data preservation operations.

They work as follows: the user makes a transaction request; this request is processed in a personal computer network called “nodes”; the nodes then check the transaction; after the transaction is verified, the network creates a new “block” that joins all other transactions; and then the transaction is completed.

The uniqueness of the block chain is their nodes and blocks. The network is fully decentralized through the use of nodes and blocks, and since each node has the same transaction record, this makes fraud much more difficult.

According to Reuters, many banks have started testing applications based on blockchain, but few have launched production.