Mike Davies, a blockchain expert at PA Consulting, is quoted in FS Focus’ article by Nick Martindale. It looks at blockchain’s infiltration into the financial services sector with the recent move by 75 banks to sign up to the Interbank Information Network to create a mutually-accessible ledger based on blockchain technology.
The author notes that there are a number of potential obstacles that need to be overcome before blockchain technology becomes more established in the financial services space.
Mike says scalability is a particular concern.
He adds: “The most widely used platform for blockchain applications is Ethereum, which was the first blockchain provider to enable users to create smart contracts.”
Mike continues: “This platform can only currently handle eight to 20 transactions per second, while Visa can handle 25,000. Being able to operate on a bigger scale without compromising security is blockchain’s greatest challenge.”