Schroders: Blockchain could be to industry as the internet is to society

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Schroders' US head of credit research believes the banking and brokerage sectors could be revolutionised by blockchain to the extent society has been transformed by the internet.

In a report, entitled What is Blockchain and why will it revolutionise the business?, David Knutson, head of credit research, Americas, at Schroders said the current model of traditional centralisation was "inherently" more risky than blockchain due to the latter's decentralised nature. He also highlighted blockchain's ability to reduce accounting and transaction costs, improve security and increase levels of efficiency. The report said with a centralised system, a targeted weak point could put the entire business at risk, while the decentralised nature of distributed ledger technolog...