Banks Could Be Working on Blockchain-based Digital Vault Project
With so many banks exploring the potential offered by blockchain technology. It is only a matter of time until the first projects start rolling out to the public. In a surprising turn of events, an unnamed Belgian bank might be one of the first to unveil their blockchain project. According to information provided to us by an employee, who wishes to remain anonymous, a digital vault based on blockchain technology could be on the horizon.
Also Read: Bitcoin vs. the Banks: A Blockchain Without Bitcoin?
Banks Could Build Digital Vaults Using Bitcoin Technology
It will take years until banks and other financial institutions openly accept Bitcoin and other virtual currencies as a payment method. That being said, the underlying blockchain technology will be of great interest to banks, as they can experiment with ways to move funds around the world in a convenient manner at a fraction of the cost.
Not all of the focus will be on finding new and creative ways to move money around the world, though. There is no limit as to what financial institutions can achieve by using blockchain technology for their projects. One Belgian bank is exploring the option of providing customers with a digital vault, built on top of Bitcoin technology.
The main goal of a blockchain-based digital vault service is to give customers a way to store Bitcoins, just like they would do with any other type of wallet. Doing so creates a sense of familiarity for novice Bitcoin users, who otherwise might be slightly overwhelmed by the idea of storing virtual currency on their computer or mobile device.
Before people get their hopes up for such a project, it is important to note this idea is only being considered at the moment and is far from being completed. The bank in question, which remains unnamed for the time being has put up a page to gauge interest regarding a blockchain-based digital vault solutions, which can you can find here.
Not too many details regarding this project are known at this point, other than the fact the bank will send a questionnaire to all users who enter their email address on that web page. The main goal of this questionnaire is to find out how banks can serve their customers best regarding a digital vault service for Bitcoin purposes.
Additionally, it is key to note that any bank involved in the blockchain technology exploration space will deny specific details regarding their internal projects. As none of these projects are remotely close to being completed at this time, there is no reason to go into further specifics, as these projects might never come to fruition to begin with.
Overcoming The Annoyances of Home Banking
Another option worth exploring for financial institutions is improving on the technology they are offering to customers worldwide today. Home Banking is one of the biggest innovative features offered by the financial sector in the past few decades, but it is not without its flaws. In fact, Home Banking is quite a frustrating experience for most users.
Whenever a user logs into Home Banking, they will have to go through a strict authentication procedure. Most financial institutions provide customers with a mobile card reader, which will then generate a login authentication token that needs to be entered on the home baning website. Generating that authentication token can prove to be quite a hassle, as errors such as “invalid card”, “unreadable card” or “system error” are more common than one might think.
Once a user managed to log in to the Home Banking platform, every transaction needs to be authenticated by the same card reading procedure once again. The same error messages might occur during this process, creating a far more strenuous experience than necessary. Certain improvements could, and perhaps should be made to the whole Home Banking experience, which is where blockchain technology could play a big role as well.
What is, in your opinion, the key area banks should improve by using blockchain technology? Are you interested in their digital vault service? Let us know in the comments below!
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