Hackernoon logoCould EOS Be The Blockchain For Banking? by@alfredodecandia

Could EOS Be The Blockchain For Banking?

Alfredo de Candia Hacker Noon profile picture

@alfredodecandiaAlfredo de Candia

Author of "Mastering EOS" & "Mastering DeFi" blockchain specialist, android developer

Starting from the origins of the history of the blockchain, which was born and evolves with bitcoin, we see that the same was born to create a better system for the transfer, almost immediate, anywhere in the world to anyone, with low cost and without any intermediary, hence a peer-to-peer system of digital money.

Although that idea has now evolved into a simple store of value, we see that other blockchains have been born and have developed different and additional things compared to the first, going to improve useful aspects such as the speed of the transaction and the number of transactions itself is capable of processing.

Now let's shift our attention to which blockchains are able to support the traditional banking system and therefore if they use a blockchain to process bank transfers, wire transfers and so on.

To make an at least real analysis of the possibilities offered, let's take some data, even if they are not exhaustive, of the different and most widespread traditional transfer methods, in this case the American system Fedwire and SWIFT which operates in Europe above all (we will take the annual data and we will divide it for 12 months and the same for 30 days):

  • Regarding Fedwire, we have a daily average of around 600,000 transactions
  • Regarding SWIFT, on the other hand, there are approximately 33.5 million transactions per day

If instead we take the data of the VISA and MasterCard circuit only then we have:

  • Approximately 388 million transactions per day and worldwide for Visa
  • For MasterCard about 242 million transactions per day and worldwide

Now let's analyze the various blockchains for the maximum number they registered in 1 day, here all the data:

  • Blockchain EOS over 81 million transactions
  • Blockchain XRP over 28 million transactions
  • Blockchain Telos (sister chain of EOS), over 18 million transactions

So with these data in hand, we can see that only the EOS blockchain is already able to manage and process all bank transfers immediately and without any kind of intervention, while instead, compared to Visa and Mastercard payments, an increase of at least 4 times of the current network.

But is it really so?

Perhaps not everyone knows that the maximum transactions per second (tps) reached by the EOS blockchain was 3996 and this figure if we multiply it to the maximum and therefore for the 24 hours we obtain a total of over 340 million daily transactions that it manages to support this blockchain.

But this blockchain does not stop here because only in the test network of the EOS blockchain itself, 9170 tps have been reached, which also here we are going to multiply them by 24 hours and we see with amazement that it is just under 800 million daily transactions that is able to perfectly handle this blockchain, which is greater than all combined daily transactions of Visa and MasterCard.

So as we have seen from the data only the EOS blockchain is able to manage the traditional payment system, and let's not forget that Google Cloud itself has joined the EOS project and therefore a giant that provides and can provide cloud solutions to various financial institutions such as banks.

In fact, more and more banks will begin to manage different digital and crypto assets such as Bitcoin (BTC) and not only, assets that coincidentally we find on the EOS blockchain in various forms such as pBTC and pETH, exploiting the bitcoin asset but with all the advantages and speed of the EOS blockchain.

Furthermore, Block.one, which is the company that created the software at the base of the EOS blockchain, EOS.io, has always been in line with the various American institutions, especially with regard to the law that is in force, making it de facto excellent for all those who want to be compliant with the American legal system and not and consequently excellent blockchain to be exploited for all those financial institutions and not like banks that can operate in a secure system already approved by the legal system, also because there is it is a great deal of understanding and cohesion precisely with the American establishment and Block.one that led to seeing the EOS blockchain as the reference blockchain to be exploited by a centralized system.

Finally, let's not forget the ProFi, which is a programmable finance in line with the American legal system and therefore offer hybrid systems of decentralized finance with centralized finance elements such as KYC (Know Your Customer) and therefore exploit the EOS blockchain to interact with centralized institutions such as banks, in fact it would be entirely possible to interact with your bank by exploiting and connecting your EOS account, after this has been identified with a KYC procedure, especially useful for all those who have an institutional position and therefore operate directly.

To learn more about the EOS blockchain in detail, I refer you to the book Mastering EOS - Practical guide for beginners and advanced which, among other things, can be downloaded for free for all those who have Amazon Kindle Unlimited, and it is also free for 30 days.

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