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Blockchain Technology revolutionize

The internet changed how we live our daily lives. Blockchain Technology will revolutionize how we do everything.

One of the biggest threats to the banking sector today is technology. Whether it is coming from large technology firms such as Google Inc. (GOOG), Apple Inc. (AAPL), eBay Inc. (EBAY) or Amazon.com Inc. (AMZN), or from new financial technology (FinTech) start-ups, traditional banks are beginning to taking notice. One potential disrupter for the financial industry today comes from applications involving blockchain technology — the tamper-proof system of distributed ledgers which underlie cryptocurrencies such as Bitcoin. Large financial institutions, from investment banks to stock exchanges to central banks, are all beginning to work on their own blockchain-based solutions in order to stay on top of this innovation. (For more, see: Technology, The Biggest Threat to Banks).

BANKS ARE TAKING NOTICE

Before looking at just how blockchain technology can disrupt traditional banking, it is worth taking note of some the key institutions that have publicly announced interest in it (meanwhile, many other banks are doing so without informing the public). (See also: How Will Bitcoin 2.0 Change the World). French investment bank BNP Paribas has announced it will begin looking at how blockchain technology can be applied to its currency funds and for order processing.

Technology-focused stock exchange NASDAQ OMX Group Inc. (NDAQ) has said it is working with blockchains to "reduce the time, costs, and points of friction across the capital markets". Goldman Sachs Group Inc. (GS), while not overtly reporting that they are working on anything in house, caused some speculation after it participated in a $50 million investment round in funding Bitcoin wallet and payments company Circle, Inc.

Spain-based Banco Santander (SAN) is working internally to develop blockchain-based solutions that will reduce its costs by $20 billion a year by the end of the decade. Barclays (BCS) is viewing blockchain technology as "transformative" and is experimenting with it both internally and via partnerships with start-ups to use it as it relates to financial services.

Swiss investment bank UBS (UBS) has gone so far as to create its own standalone blockchain lab to conduct proprietary research for the company to use. It has been revealed that Citigroup Inc. (C) has worked on at least three different blockchain-based undertakings including its own cryptocurrency known as CitiCoin.

Additionally, Société Generale, Standard Chartered, The Bank of England, Deutsche Bank, DBS Bank, BBVA (BBVA), LHV Bank, BNY Mellon (BK), CBW Bank, Westpac (WBK) and the Commonwealth Bank of Australia are all in the race to research and deploy this technology.