Information Systems Integration – Tony Messina

Blockchain in Financial Services Industry

Blockchain technology is a digital, decentralized, and distributed transaction ledger with a growing list of records that is linked and secured by using cryptography. Due to its recent growth in popularity, corporations are starting to understand the technical capabilities for blockchain technology and finding use cases for it, especially in the financial services industry. Currently, the third largest cryptocurrency Ripple (XRP), with a market cap of approximately $50 billion was founded in 2012. Ripple has gained a tremendous amount of popularity since its one of the most scalable cryptocurrency. XRP connects banks and payment providers through its blockchain, RippleNet, simplifying global financial transactions. It’s advantages are quicker transaction times, lower transaction costs, and tracking transactions on its network. In comparison to Bitcoin, cross-border payments could take hours that is associated with ridiculously high transaction fees while Ripple can be completed in a matter of seconds for a fraction of the price.  It has locked partnerships with large organizations such as American Express, Santander, and other financial services companies in Europe, Japan, and South Korea.

In the future, do you think Ripple gain mass adoption and replace our current financial system? What are some of the risks if there was a full scale adoption of Ripple? What are some other applications can blockchain technology be used for?


2 Responses to Blockchain in Financial Services Industry

  • Hi Anthony!

    I have some ripple myself. It is one of my least favorite cryptos but the value proposition is undeniable. If you are interested in diving deeper into the XRP use case, look into the W3 payment collaboration here:
    and check out this fellow’s association with the two:

    Also, check out Codius, XRP’s proposed smartcontract platform. The smartcontracts are written in javascript which is much more web-developer friendly than solidity. Makes sense that XRP is number 3!

  • I believe that in a few years, Ripple will be partnered with many banks. Ripple is currently partnering with some big banks in certain countries so they must see that there is a lot of potential with Ripple. The way that Ripple’s blockchain technology can speed up transaction times and the number of transactions that banks can do is really useful. I think it will take some time for people to trust in this newer technology but with time, I think that people will see the upside in Ripple and adopt it.

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