Yes, and note there are several types of blockchains:-
- Private blockchains
- Public blockchains
- Consortium blockchains
Most likely the bank's on a consortium blockchain. It's not open for public participation, but I imagine a group of banks running the blockchain, passing off transactions when a percentage blockchain nodes (the many different banks) provide their signatures. It reduces their transaction costs because there's no need for manual administrative works.
However, note that private / consortium blockchains , which are not open for public participation (in signing off blocks, etc) are susceptible to gaming / collusion. In this case, banks and governmental offices like land registry understandbly needs to be on non-public blockchains so they could edit information if there are mistakes, or perform critical rollbacks. So what I'm trying to say is - banks are using blockchains to make their internal machinations cheaper, but their database can still be manipulated, in a way easier than before. And to add, the security of your funds still remain the same - in 3rd party's hands. But i think they'll add better value back into their customers as more banks get onboard with the blockchain game :)
Hi @kevinwong. I completely agree with you, and I think that a lot more banks will get onboard with blockchain very soon. Thanks for leaving a comment.