Most of blockchain’s benefits don’t come from blockchain, Bank of Canada staffer says



Founder’s view may differ from its position, says Bank of Canada

The Canadian Editorial writers Posted: Mar 12, 2018 3:39 PM ET Last Updated: Mar 12, 2018 3:39 PM ET

A new research paper by a Bank of Canada staffer voices most of the proposed benefits of the technology known as blockchain don’t really check in from features unique to blockchain.

In recent years, blockchain has been captivating a growing amount of attention as an efficient, highly secure, distributed-ledger technology with numerous requests — from easing cross-border transfers of funds, to creating a foundation for digital currencies along the same lines as Bitcoin.

But a staff analytical paper from the Bank of Canada is peeling behindhand the layers of blockchain’s proposed advantages and suggests most of its assets in truth come from more-conventional technologies such as encryption and smart wrinkles.

Author Hanna Halaburda also suggests the enthusiasm and uncertainty circumambient blockchain has an impact on the economy, for example, through optimistic valuations of blockchain-referencing startups.

The inner bank says positions presented in its staff papers solely masquerade as the views of the author and may differ from those of the bank.

Governments in Canada and responsibilities, including big banks, have dedicated growing pools of resources to observing the possible applications of blockchain — and even the Bank of Canada itself has been cooperating as part of a research initiative that has tested whether the technology could advise underpin an inter-bank wholesale payment system.

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