The past decade has been marked by an avid interest in cryptocurrencies, whose number currently exceeds 1,800 in a market valued at more than $200 billion. Most of the media attention and trading activity seem to be reserved for the original cryptocurrency, Bitcoin (BTC), but corporate interest lies predominantly with Ethereum (ETH) – the second largest digital coin by market capitalization. Coming out almost five years after Bitcoin, ETH has captured the attention of businesses as its network supports faster and cheaper transactions and a functionality believed to have a hugely disruptive potential for almost all industries: smart contracts. The Ethereum blockchain and the capabilities it offers have come to be regarded as particularly promising drivers of innovation in the financial service sector, with some of the biggest Wall Street names rallying behind the project, notes acclaimed forex broker and dedicated philanthropist Pablo Soria de Lachica.
Although cryptocurrencies are in the spotlight, it is the technology underpinning them that is of interest to business organizations, financial institutions in particular. Blockchain, also known as distributed ledger technology (DLT), is widely expected to disrupt multiple segments of the industry, and Ethereum has established itself as the leading blockchain platform for enterprise use. The importance of the project and its technology was highlighted early in 2017, when some of the world’s largest corporations joined forces to create the Enterprise Ethereum Alliance (EEA). Among the banks signing up for the initiative were JPMorgan, BNY Mellon, USB, Credit Suisse, Santander, and BBVA. The alliance also includes technology giants such as Microsoft and Intel, business information provider Thomson Reuters, and professional services major Accenture. Two years before it became a founding member of the EEA, Microsoft teamed up with ConsenSys to offer Ethereum Blockchain as a Service (EBaaS) to its enterprise clients. As the US software provider noted at the time, “In financial services particularly, blockchain is a major disruptor to some of their core businesses and fintech companies are driving innovation in this space. Ethereum is open, flexible, can be customized to meet our customer’s needs, allowing them to innovate and provide new services and distributed applications (DApps). Ethereum enables smart contracts and DApps to be built, potentially cutting out the middleman in many industry scenarios, streamlining processes like settlement.”
While Ethereum’s blockchain has numerous advantages over rival platforms, the greatest potential for financial services lies in its smart contracts functionality, Pablo Soria de Lachica explains. These are computerized transaction protocols that self-execute when the terms of an agreement are met. Since no intermediaries are needed, smart contracts ensure transparency and traceability. According to a Deloitte report, their benefits include speed, accuracy, real-time updates, lower execution risk, and the potential to introduce new business or operational models. In financial services, Ethereum’s technology can be used in trade clearing and settlement, insurance claims processing, and supply chain and trade finance documentation, among others. Vincent Launay, a finance specialist at the World Bank in Washington, DC, sees Ethereum’s smart contracts as a game-changer in the field of fund-raising. The blockchain-based protocols have already allowed thousands of startups to secure capital via initial coin offerings (ICOs) instead of relying on traditional venture capital financing. Launay also believes Ethereum could disrupt the corporate bonds market and in doing so, open it to the legions of smaller investors who are currently left out.
Pablo Soria de Lachica graduated from Universidad Tecnologico de Mexico (UNITEC) with an MBA, going on to specialize in international trading and ultimately become one of the most prominent forex experts globally. His extensive experience allows him to maximize profits for his clients by combining professional guidance and educational projects. He is currently collaborating with Kartoshka – a company bringing the latest technologies in sales, telemarketing, and customer support.
Pablo Soria de Lachica Discusses Projections for Ether Price Movement against USD: http://www.digitaljournal.com/pr/3906148