How Many Blockchains
The Cryptocurrency industry continues to see new and very often innovative practices happening as companies and individuals try to get ahead in the marketplace. And as always, the financial industry is pushing Cryptocurrencies to the boundary to see how it can operate in the most cost effective way.
The above can be seen on almost a weekly basis with German Commerzbank AG providing the latest wow moment. It is becoming pretty standard practice who banks for are jumping on the Blockchain bandwagon to select their most favored Blockchain to support their working environment. As expected, there are the usual painstaking reviews which lead to that final decision. However, Commerzbank has taken the bold decision to stand out from the crowd and work with not one but five Blockchains. As one of the biggest financial institutions you will find in Germany, financial security is not a concern of Commerzbank and therefore taking what is seen as a risk by many, is not a worry of this bank. In fact it is not seen as a risk at all by the bank.
What’s The History?
Although the bank did originally start with the one Blockchain a few years ago – MultiChain – it has been adding to its collection over recent years and now boasts BigChainDB, Hyperledger, R3 and the Enterprise Ethereum Alliance as part of the team. This has been a well thought through process and has not just happened in a haphazard fashion. The bank suggests that by working with a group of Blockchains, you gain the best of all of them and optimize synergy just as long as all of the Blockchains can work effectively together, which is the major challenge. The financial institution is a firm believer that this is the best way forward for the bank.
Commerzbank does make a very valuable point in that by working with several Blockchains, it is safe guarding its future and not putting all of its eggs in one basket. It is also able to learn about different technologies and how they work all at the same time.
Will It Work?
Quite possibly even more impressive than operating the five Blockchains concurrently, is that the bank is very adamant that all of the development work remains in-house. Quite rightly so, the bank has commented that the only way to stay ahead of competitors is to have their own team of 23 employees working on their future. This is not something for an external party to be focusing on. This number will only grow as the bank strengthens its portfolio and offering to customers. Each member of staff will certainly be kept busy because, as the bank explains, with each need for a Blockchain the project team will review the needs of that solution and choose the very best Blockchain for that particular purpose. There are no work arounds or shortcuts.
Although all of the positives and benefits are not apparent just yet, there are expectations that this will fall into place over the coming months and other banks will follow suit in the not too distant future. And as with all things Cryptocurrency, it takes one brave soldier to take the first large and often risky step. Once the pluses start becoming apparent to others, they soon follow suit.