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Blockchain could save investment banks up to $12B a year: Accenture

reuters.com

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Re: Blockchain could save investment banks up to $12B a year: Accenture

#61

Post by 100213010 »

dogismycopilot wrote: post #56

I worked for Accenture for a very short time, and I will say that they have no idea what they are talking about, regardless of what it is. Somehow, I just found a charge for $3500 from Accenture on my credit report. It HAS to be from when I worked there. They either took back a bonus or thought that they paid me too much I guess. It's been years, I have never heard anything about it, and now my credit took a hit. Wor…

Judging by the downvoting, it appears that you have hurt some delicate souls here.

Re: Blockchain could save investment banks up to $12B a year: Accenture

#62

Post by throwawayish »

J-dawg wrote: post #20
cashmonkey85 wrote: post #14

Earlier quoted context omitted.

The problem is without blockchain you don't have a meaningless buzzword to sell bullsh*t to banks. Blockchain is a vital technology for this. Cryptocurrency is the future but I've never talked to more snake oil sales people than when talking to "blockchain" companies. I marvel at people's ability to sell nothingness

I don't know much about blockchain, but the salespeople of big consultancy firms like Accenture are master snake oil merchants. When you combine the two it must be like a perfect storm of bullshit.

Like a shit tornado. Shirnado.

Re: Blockchain could save investment banks up to $12B a year: Accenture

#63

Post by runeks »

sly010 wrote: post #22
spangry wrote: post #19

Oh god, not this again. Sounds like Accenture are looking to bring in more 'technical integration' clients (read: marks). Government and old financial being the favourites, given their deep pockets and technical illiteracy. If anyone is in a job that involves holding back some of this insanity, this decision-flow diagram might help: http://i.imgur.com/4nZ67Sq.png

There is a mistake on the diagram. The rightmost ellipse should say "you don't need a blockchain". The rest is accurate.

I agree. There's no need for a blockchain if two parties can find a mutually trusted third party: use 2-of-3 multi-signature with one of the public keys being that of the trusted party.

Re: Blockchain could save investment banks up to $12B a year: Accenture

#64

Post by throwawayish »

alcio wrote: post #41
runeks wrote: post #28

Can anyone name a single success story about the use of blockchain technology to solve a specific problem, and how this problem was solved using blockchain technology (besides Bitcoin)?

git

git and blockchains have in common that they both use cryptography.

So you might have as well said "Signal".

Re: Blockchain could save investment banks up to $12B a year: Accenture

#65

Post by elastic_church »

runeks wrote: post #28

Can anyone name a single success story about the use of blockchain technology to solve a specific problem, and how this problem was solved using blockchain technology (besides Bitcoin)?

Counterparty - create and register assets. Create secondary markets for those assets.

STORJ - (storage in a southern dialect combined with startup lingo) - A Counterparty asset that is used as fuel for a decentralized unlimited cloud storage platform. Farmers offer storage, consumers upload shards of their files to a variety of different farmers. Encrypted, unlimited, redundant. I believe the STORJ company now has VC funding as well.

OMNI - create and register assets. Create secondary markets for those assets. (Counterparty and OMNI compete for market share)

Tether - An OMNI asset which is used to create stable value cryptocurrencies that are representations of national currencies. The Tether company has a centralized account of USD and EUROs, but this enables people to hold stable value cryptocurrencies, or "cash out", but not have to worry about the long delay of getting national currency from a bank. Primarily used for trading.

All of the above metalayers create transactions on the bitcoin network, and settle on that blockchain, so if that disqualifies them all because they use bitcoin underneath, then Dogecoin has a Counterparty layer as well :)

Re: Blockchain could save investment banks up to $12B a year: Accenture

#66

Post by elastic_church »

omouse wrote: post #49

propping up the existing banking system isn't the point of blockchain; sure it could save money but it could generate more revenue than 12billion a year if used for a new banking system. the monopoly on credit has to end.

its going to be fun when the banks and governments are issuing credit on blockchain assets, it is going to be a MESS when they go insolvent after the heist of their collateral.

2028? 2035? what year you guys think that'll happen

Re: Blockchain could save investment banks up to $12B a year: Accenture

#67

Post by cm2187 »

spangry wrote: post #19

Oh god, not this again. Sounds like Accenture are looking to bring in more 'technical integration' clients (read: marks). Government and old financial being the favourites, given their deep pockets and technical illiteracy. If anyone is in a job that involves holding back some of this insanity, this decision-flow diagram might help: http://i.imgur.com/4nZ67Sq.png

I'd add do you need high level of transactions per second. If you need to reverse a hash every time you make a transaction, that's not going to be fast or efficient.

Also do you need transaction anonymity. A blockchain is also a public ledger. You may hide behind a secret key but everyone can see what that secret key is doing and has done since the begining. As soon as Morgan Stanley notices that this big trade has to be Goldman Sachs, then Morgan Stanley can observe all of the transactions that Goldman Sachs has done from the begining. That problem alone should close the debate. Markets need anonymity for all the other market players not to arbitrage your position.

Re: Blockchain could save investment banks up to $12B a year: Accenture

#68

Post by petertodd »

unknownsavage wrote: post #52
petertodd wrote: post #31

Earlier quoted context omitted.

What I found especially amazing by that is traditional accounting is based on immutability already: you never delete a ledger entry, you add a correction. The same concept for a blockchain is trivial. Equally, if you _really_ do need to delete something, just insert a record into the blockchain instructing all nodes to delete that record. Sure, you won't be able to verify the chain 100% after you delete the data, but…

Actually their view point is perfectly consistent. They criticized _bitcoin_ not the blockchain. While a blockchain could support some of the regulatory required undo stuff (by appending a record that it's been undone), bitcoin itself certainly doesn't won't let you roll back a bunch of transactions.

Read the PDF: they're working on a chameleon hash scheme so that their blockchain can be undetectably modified, not unlike making an accounting ledger with dry erase markers. That's going way beyond disagreeing with Bitcoin; what they're doing doesn't have the strong auditability that you'd expect from a "blockchain" solution. It's closer to a bog standard database really.

Re: Blockchain could save investment banks up to $12B a year: Accenture

#70

Post by occamrazor »

kneel wrote: post #51
notahacker wrote: post #44

Earlier quoted context omitted.

and much slower than Visa, never mind the sorts of transactions where there are algorithms earning big bucks profits from frontrunning trades with millisecond advantages....

Investment banks don't use Visa to transfer money and bitcoin isn't replacing electronic trading platforms.

TARGET2 settles within seconds.
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