Tech behind bitcoin can help check counterfeiting: RBI

 Exactly two years after it issued a caution against use of virtual currency bitcoin, the Reserve Bank of India has come around to appreciate the strengths of the underlying 'blockchain' technology. Blockchain is a digital platform which records all bitcoin transactions in a way that cannot be altered. In December 2013, the RBI had cautioned users, holders and traders of virtual currencies (VCs), including bitcoins, about the potential financial, operational, legal, customer protection and security-related risks that they are exposing themselves to. This week, in its report on financial stability, the RBI said that even as opinion diverged on the virtual currency itself, the key technical concept of 'blockchain' which underpins such cryptocurrency systems is drawing more attention now. "With its potential to fight counterfeiting, the 'blockchain' is likely to bring about a major transformation in the functioning of financial markets, collateral identification (land records for instance) and payments system," said the RBI. The central bank pointed out that the traditional system of record maintenance works on the basis of 'trust' and the 'regulatory' and 'controlling' power of central entities/counter parties. "As against this, the 'blockchain' technology is based on a shared, secured and public ledger system, which is not controlled by any single ('central') user and is maintained collectively by all the participants in the system based on a set of generally agreed and strictly applied rules," the RBI said. That's How You Find Super Cheap Flights!Save70 New Mexico's Unique Architectural StyleAFAR

Bitcoin's 'blockchain' tech may transform banking

 The technology that drives the shadowy cryptocurrency bitcoin is drawing interest from the established banking industry, which sees a potential to revolutionize the sector. Although bitcoin and related virtual currencies are limited to a small set of transactions and are often associated with the underground economy, the so-called blockchain technology is gaining currency in the financial world. A blockchain is essentially a shared, encrypted "ledger" that cannot be manipulated, offering promise for secure transactions that allow anyone to get an accurate accounting of money, property or other assets. "The blockchain, which is the technology behind the encryption and e-certification, that is a technology which might very well be very useful," said Jamie Dimon, chairman and chief executive of JPMorgan Chase at a conference earlier this year. Leah Gerstner, a vice president for public affairs at American Express, said the financial group made its first investment in a digital currency company called Abra "as a way to get a better understanding of blockchain technology and explore its potential." Gerstner told AFP that "we believe blockchain technology is playing an important role."