Security

Why blockchain is essential to the future of banking and finance

Blockchain will begin to transform financial transactions in 2018. Lighthouse Partners' Pete Harris explains how this technology works, and what businesses can do to get started using it.

Blockchain will disrupt a number of industries in 2018 including financial services. TechRepublic's Dan Patterson met with Lighthouse Partners' principal Pete Harris to discuss why blockchain technology will be important for the future of banks and financial institutions.

The blockchain allows collaboration between several parties that may not know each other, or that are located in different geographical locations. It's like an account ledger that you insert information, similar to a database, he said, but once that information is in there, you can't easily change it. "Blockchain allows a level of trust develop," he added.

SEE: What is blockchain? Understanding the technology and the revolution (TechRepublic)

Specially, within the financial sector, blockchain technology has had a big impact on supply chain finance. Buyers and sellers need to have mechanisms they can know and trust to handle their financing, he said, and blockchain is being very actively piloted in that area.

For companies looking to begin implementing blockchain, they must first become educated about the technology by talking with peers, customers, and vendors. Secondly, they can look at the open source community, and download credible, open source code, and begin to experiment with it.

"You can definitely look at trying both cloud technology, and open source blockchain and analytics technology to begin to understand the technology, and begin to develop on it," Harris said.

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About Leah Brown

Leah Brown is the Associate Social Media Editor for TechRepublic. She manages and develops social strategies for TechRepublic and Tech Pro Research.

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