Deloitte and ConsenSys Enterprise are partnering up to enhance their enterprise blockchain solutions amid growing pressure to deliver a robust product for the financial industry.
ConsenSys & Deloitte Partner Up
Cryptocurrency enthusiasts have noted how there is a lot of hype surrounding blockchain technology. Financial institutions may see this as the holy grail of finance for the future. But they do not necessarily understand how the technology works.
However, financial institutions have no interest in the Bitcoin blockchain, due to scalability issues. Plus, they cannot exert control over the open blockchain either. Deloitte and ConsenSys Enterprise have built their respective versions of blockchain technology so far. These private solutions are tailored towards the banking sector, as financial institutions remain in control at all times.
Now that both companies have partnered up, they will launch a new suite of digital banking solutions. Deloitte brings an extensive network of clients to the table. ConsenSys is best known for its Ethereum-inspired blockchain technology. Moreover, they have built up quite some expertise in the world of distributed ledgers.
More Private Blockchain Solutions
As part of this partnership, Deloitte and ConsenSys Enterprise will collaborate on new blockchain prepositions. Specific details were not announced yet, albeit both enterprises will focus on IoT, asset management, and collateral management. None of these projects will use an open blockchain standard, however.
Deloitte Consulting Innovation leader for Financial Services Thomas Jankovich stated:
Deloitte is treating digital transformation and innovation in financial services as a global priority and distributed systems technology is proving its potential for us and our clients. Having previously designed and built digital banking propositions entirely around customers, we understand the importance of service architectures and organizational capabilities needing to be strong, flexible and nimble and blockchain checks all the boxes.
Collaboration with Deloitte is a significant feather in the cap for ConsenSys Enterprise. While merging blockchain development with digital identity and financial products is promising to banks, many questions remain. This is because private blockchain initiatives such as these will require a proper consensus mechanism.
Bitcoin uses proof-of-work to validate transactions around the clock. For now, it remains unclear how this new partnership will ensure immutability of blockchain records.
What are your thoughts on this new partnership? Let us know in the comments below!
Source: Consultancy UK
Images courtesy of Deloitte, ConsenSys, Shutterstock, public.deloitte.com