A MAJOR SOUTH KOREAN BANKS WANTS TO EMPLOY BLOCKCHAIN TECHNOLOGY TO CORRECT HUMAN ERRORS.

news@eBitcoinics.com   12 Dec, 2018   news.eBitcoinics.com   Views: 305

One of the most important banks in South Korea has reported that it is in the process of implementing a blockchain-based system that reduces human errors. The information was provided by the local news outlet, The Korea Times, on Monday, November 10.

Shinhan Bank, the second largest bank in South Korea, is using the block chain to carry out interest rate swap transactions (IRS). Interest swaps are a type of futures contract that is based on the exchange of fixed interest flows between two economic agents. That is, they can agree to pay interest, either by increasing or decreasing interest rates.

The spokesman of the South Korean bank has compared the blockchain platform proposed with the previous system, highlighting the benefit of the first:

"Before the blockchain-based process, there were no standardized rules governing the maintenance and management of financial records, a reason why market participants had to rely on their own records, which often led to errors despite of the requirement of the cross-verification process. The new system helps eliminate such human errors and helps improve work efficiency through clearer and task-related communications instead of wasting time correcting errors. "

One point to note is that, despite having been designed to reduce human errors in transactions, this platform still depends on these for data entry, so that error remains latent. Although as with any new system, a learning curve will be applied.

Finally, the representatives of the bank have also indicated that this system will begin to be implemented once it has sufficient stability.



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