Banks Could Now Cut Costs Through IBM’s New Blockchain App Store

BTC Wires: IBM is now launching a retail blockchain-based app store, and plans to facilitate banks and other financial institutions save a lot of money on back-stop expenditures. The smart systems and crypto-technologies taken into consideration, the company hopes that money providers would be able to use this store and therefore manage to cut down on running fees, and therefore charges as well.

An electronic ledger with a history of all financial transactions can be made on a blockchain. In such a ledger, price entries cannot be altered, and new entries are updated in real time. Since multiple users will be able to share all the information in the ledger, it would be very hard for others to somehow toy with the data. This makes the system very secure.

LedgerConnect, IBM’s new app store, will be able to provide financial institutions access to upto 7 dominant blockchain distributors. They will be able to support these institutions by streamlining there transaction procedures and help secure operations maintaining just one set of data. This is all the more appropriate now, when banks are forced to run expensive individual programs.

IBM has said that several banks, including Barclays and Citi, are currently participating in the program.

IBM is collaborating with financial company CLS, which would settle all payments in foreign currencies. Therefore, unlike several crypto networks like Bitcoin and Ethereum which are public, this one would be completely private.

Keith Bear, Vice President of worldwide monetary marketplaces IBM, had explained that this new method was key to the system, as private networks would ensure the security of sensitive transactional information.

According to study by Goldman Sachs, up 10% of all trades are prone to mistakes that would create some very expensive delays. According to the research, crypto-technologies could save financial institutions upto $11-12 billion per year by getting rid of all of such expensive mistakes and their reduced working costs.

Bear maintains that the app store is simply a platform for “starting up”. The company has also stated that they are still developing new systems and technologies, and they would soon be released to the market as well.