Tehran, Iran, Jan.12
Trend:
The Central Bank of Iran (CBI) is considering the possible use of Blockchain technology as a new encrypt system to avoid counterfeit cases.
"The Encrypt system in blockchain would solve some problems with financial transactions, including counterfeiting and scams," said the Secretary General of the Central Bank of Iran Mohammad Talebi , Trend citing ILNA.
"It is predicted, that the Blockchain technology will change the structure of the internet," he said.
The block chain is a shared public ledger which the entire crypto currency network relies on. All confirmed transactions are included in the block chain. It would allow crypto currencies like Bitcoin to calculate their spendable balance so that new transactions can be verified thereby ensuring they're actually owned by the spender.
Blockchain is one type of a distributed ledger technology. Distributed ledgers use independent computers (referred to as nodes) to record, share and synchronize transactions in their respective electronic ledgers (instead of keeping data centralized as in a traditional ledger).
"The world financial organizations are currently based on centralized ledgers like SWIFT system that controls all the financial transactions in countries but Blockchain is changing this pattern", he added.
"For example, Crowd Funding is a new phenomenon in the financial world and I believe the Blockchain technology will change its form, while the supervising organizations will be different, meanwhile, privacy and security will improve."
Speaking of cryptocurrencies, he said that countries are moving towards creating their own cryptocurrencies, and this would trigger changes in the capital markets.