DUBLIN, April 5, 2016 /PRNewswire/ --
Microsoft Inc. has partnered with R3, a consortium consisting of 43 financial institutions, to create a strategy to speed up use of blockchain technologies. The partnership is believed to be an attempt by Microsoft to best Amazon, Google and IBM, all of whom are offering their technological expertise to banks and other financial institutions looking to utilize blockchain technologies in their everyday operations. Blockchains, online ledgers used for recording digital transactions, first came to prominence with the emergence of the digital currency bitcoin. Financial Technologies including blockchains are disruptive to the incumbent financial system, as noted in a recent report available from Research and Markets, due to such technologies ability to erase the need for intermediary trust agents for payment processing, hence why many banks are now looking to explore the possibilities offered by such technology.
The first commercial deployments of Microsoft's blockchain are expected to go live in about a year, but it could be between three to five years before blockchain technology experiences a significant commercial adoption. Microsoft's partnership with R3 will likely give it an advantage when it comes to winning blockchain contracts from banks, as R3 member companies include Barclays, Credit Suisse Group, UBS Group and more.
Blockchains enable services and business models that are not viable using existing digital infrastructure, as highlighted in a recent industry report. These services, such as cryptocurrencies and smart contract platforms, offer consumers greater financial security and ease of use. It's essential that financial institutions adopt such technology to ensure satisfied and secure customers.
The global bitcoin technology market is estimated to grow at a CAGR of 7.26% over the 2015-2020 period, according to a recent market report. However, this estimation could be higher than predicted if global financial institutions continue to partner with technology giants and implement FinTech services in their offerings.
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SOURCE Research and Markets