Spanish bank completes landmark loan transaction over blockchain

Spanish bank completes landmark loan transaction on blockchain

The promulgation of blockchain in everyday life continues with another success story. The latest evidence of its importance to commerce comes from Spain after international banking institution BBVA transacted a loan entirely across the blockchain.

BBVA used a private blockchain to conduct the loan from start to finish, according to the Financial Times. In doing so, it has now become the first global bank to enlist the technology in a loan operation. The €75-million ($91.4 million) loan, from initial negotiations to the completion of signing, was managed on a distributed ledger. Both the bank and the loan recipient were constantly updated on the progress, and the transaction time was reduced from several days to just a few hours. BBVA called it a “significant advance in the exploitation of [distributed ledger] technology.”

With this transaction successfully under its belt, BBVA is planning to conduct more blockchain-transacted loans. BBVA CEO Carlos Torres Villa was quoted by the news outlet saying, “Blockchain can offer clear advantages for all sides in the corporate loan market in terms of efficiency, transparency, [and] security… It’s another strong example of how disruptive technology can be used to add value to financial services, something that is central to our strategy.”

BBVA had some help in managing the transaction. Spanish telecommunications company Indra assisted to make sure communications channels and equipment were always working properly. Borja Ochoa, Indra’s director of financial services, said, “This pilot served as an opportunity to take part in the first corporate loan operation based on blockchain technology in the world. The operation strengthens the position of BBVA and Indra as leaders in the practical application of blockchain technologies.”

The blockchain is the perfect solution for industrial and corporate loans, which are oftentimes more delicate and require more input from various sources and need to be kept more secure than personal loans. BBVA used a private blockchain for the transaction, but all loans will be registered and completed on the Ethereum blockchain. In addition to corporate loans, BBVA is exploring the possibility of using blockchains for international lending and trade, as well as in foreign exchange transactions.

BBVA is one of only a few global banks to proactively embrace cryptocurrency and blockchain technology. It has already made several investments into both sectors, and just a couple of months ago successfully completed trials for cross-border payments using Ripple.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Google prepares own blockchain

Google prepares own blockchain, but not for expected reasons

Blockchains have been shown to have a myriad of functions. Although they were created for cryptocurrencies, they have been used to provide food to the hungry, settle real estate contracts, prevent voter fraud and much more. They have proven to be a highly versatile, highly functional technological platform that will surely find their way into more and more uses. Google has found one already and is currently creating its own blockchain-based distributed digital ledger.

The ledger will be used to secure customer data (perhaps they can share the technology with Facebook), as well as to allow third-party companies to be able to submit and verify transactions. The company has been working on the technology for a few months, taking advantage of its robust cloud service to support the production. Google has yet to make an official announcement about the development, but a spokesperson told Bloomberg, “Like many new technologies, we have individuals in various teams exploring potential uses of blockchain but it’s way too early for us to speculate about any possible uses or plans.”

The enormity of the tech giant gives it a lot of capability to grasp ahold of any new technology. It only makes sense, then, that it would embrace blockchain to maintain its edge. As a means of more securely storing user data, the blockchain will ultimately become an integral part of Google’s suite of products.

Not much is known about where Google is heading with its blockchain plans. It currently is looking into the Hyperledger consortium, but might turn toward a different direction if another platform could be scaled to run millions of transactions. Google currently enjoys a great deal of security for its offerings, but the amount of data it holds needs to be protected to the maximum.

Google has a knack for helping to keep its position on top of technology hill and keep competition to a minimum. In 2017, it maintained its position by investing a large chunk of its revenue into startups that were exploring blockchain and digital ledger technology. It invested more than did Goldman Sachs or Citigroup, two of the leading companies in technological investments. If the company is currently exploring blockchain technology, there’s a very good chance that it’s working on something even bigger.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.