UnionBank, one of the largest banks in the Philippines, believes that the blockchain is able to significantly improve the economic system of the country. Therefore, in conjunction with the American blockchain company ConsenSys, the Bank will use the enterprise blockchain-Kaleido solution to help local financial institutions to make the processing of information in a transparent and secure transaction.
It is worth noting that increased interest in blockchain technology in the Philippines is largely associated with the specifics of the financial system. The fact that local banks require from their clients, so that their score was always a significant amount (for example, in the case of UnionBank — $2000). If your balance drops below the established limit, the customer will be fined.
Therefore, for financial transactions that most Filipinos prefer to use the services of local networks of remittances like M Lhuillier, Cebuana Lhuillier, Palawan and LBO. Their offices located in many rural areas (including where there are Bank branches), and in the big cities they can be found at every corner.
According to UnionBank, with proper implementation and commercialization, the blockchain is able to increase the speed of the country’s popular translations, as well as to ensure their transparency and security.
“This technology has the potential to disrupt financial inclusion,” said UnionBank Chairman Justo Ortiz (Justo Ortiz)
A leading expert on ConsenSys solutions in the Asia-Pacific region scarlet Garcia (Garcia Alai), said that although UnionBank — their first Bank client from the Philippines, but this country is one of the few that can extract the maximum benefits from the blockchain by implementing this technology in existing systems in the public and private sectors.
“Our thirst for experimentation can dramatically change the current system for future generations,” said Garcia.
However, the bright prospects that see UnionBank and ConsenSys in the implementation of blockchain, a few clouds one important caveat. We are talking about the fact that the cost of information processing using the blockchain is much higher than when using such centralized systems like Amazon Web Servers.
“The blockchain is less effective as a database and tool for computing than the technologies that have existed for 40 years,” said Vitalik Buterin during the conference Deconomy 2018, held in Seoul.
The founder of Ethereum noted that while the cost of services Amazon EC2 is around $0.04 per hour, the same calculation, but made a supercomputer Ethereum, will cost more than a million times.