Goldman Sachs applies for SETLcoin blockchain technology patent

Rage Review : Goldman Sachs has applied for a patent for cryptocurrency technology in order to achieve a faster, cheaper and more secure settlement process when trading and clearing SETLcoin transactions. SETLcoin is a multi-asset digital currency suitable for a variety of different transactions, whether it is cash, stocks or bonds. This trading asset can be "converted" into an equivalent SETLcoin asset and can be traded on a p2p wallet system.

Translation: Nicole

Goldman Sachs has applied for a patent for cryptocurrency technology to enable a faster, cheaper and more secure settlement process when trading and clearing SETLcoin transactions.

Despite all the concerns, this is a very important move: blockchain could be a major factor in disrupting the "outdated" banking industry, which is also feared by the traditional banking industry because of its potential to disintermediate.

So far, Goldman Sachs is one of the first banks to take action, decide to invest in Shared Ledge, and signal its willingness to adapt to the new standard.

Further research shows that banks are not only looking to introduce new products, but also support important initiatives such as Circle Internet Finance Co., Ltd., which has received a $50 million investment from China's IDG Capital Partners and the R3 blockchain consortium.

definition

SETLcoin is a multi-asset digital currency suitable for a variety of transactions, whether it is cash, stocks or bonds. This trading asset can be 'converted' into an equivalent SETLcoin asset and can be traded on a p2p wallet system.

Obviously, in order for this system to work, both parties need to have a SETLcoin wallet and SETLcoin software to issue instructions, but they don’t need to use the same currency: just like fiat currency, if you want to complete the transaction, both parties have to trust the currency used and recognize the value of the currency.

The move to implement SETLcoin in a trading environment is a wise one. In order to make blockchain investment worthwhile and to fully utilize the ledger, scaling is the primary consideration. This is one of the best options as it can achieve tens of thousands of transactions per day.

Moreover, blockchain enables secure and near-real-time settlement: when trading, both parties have to deal with T+1 (or even T+2 or T+3) settlement, which obviously means counterparty risk. Shared ledgers can provide a tailor-made solution for these things.

Change is coming

These are just the minimum requirements to get the network going. The biggest and most important changes in history will come when blockchain is used to fully implement smart contracts (like redeemable bonds or embedded clause contracts. Essentially, smart contracts are computer protocols that verify or execute contracts), derivatives settlement and issuance.

There is also a cost-saving argument to consider: according to Santander InnoVetures, blockchain could save $15-20 billion per year by 2022. This benefit should spread across the industry, which is important in an environment of low interest rates and the need for cost savings and high flexibility.