Could EOS be the blockchain for banking?

Alfredo de Candia Hacker Midday's profile picture

@alfredodecandiaAlfredo de Candia

Author of the blockchain specialists “Mastering EOS” & “Mastering DeFi”, Android developer

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Starting from the origins of the history of the blockchain, born and evolving with Bitcoin, we see that the same was born to create a better system for transmission, almost immediately, anywhere in the world, to anyone, at a low cost and without any intermediary, hence a peer-to-peer system for digital money.

Although this 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 that will improve useful aspects like the speed of the transaction and the number of transactions itself is in able to process.

Now let’s turn our attention to which blockchains can support the traditional banking system and therefore if they use a blockchain to process bank transfers, wire transfers, etc.

In order to analyze the possibilities offered, at least in real terms, we take some data from the various and most widespread traditional transmission methods, in this case the American system, even if these are not exhaustive Fedwire and FAST which mainly operates in Europe (we will take the annual data and share it for 12 months and the same for 30 days):

  • Regarding FedwireWe have a daily average of around 600,000 transactions
  • Regarding FASTOn the other hand there is about 33.5 million transactions per day

If we take that instead Data of VISA and MasterCard Circuit only then do we have:

  • About 388 million transactions per day and worldwide for Visa
  • To the MasterCard over 242 million transactions per day and worldwide

Now let’s analyze the different blockchains for the maximum number they registered in a day. Here all data:

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

With this data we can therefore determine that only the EOS blockchain is already able to manage and process all bank transfers immediately and without any intervention, while there is at least a four-fold increase of the current one compared to payments with Visa and Mastercard Network.

But is it really like that?

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

But this blockchain doesn’t stop there because only in the Test network the EOS blockchain itself, 9170 tps which we will multiply by 24 hours here as well and we see with astonishment that it is just below that 800 million daily transactions that is able to perfectly deal with this blockchain that is more than all combined Visa and MasterCard daily transactions.

As we saw from the data, only the EOS blockchain can manage the traditional payment system and we must not forget that Google Cloud itself has joined the EOS project and therefore a giant that provides and can deploy cloud solutions for various financial institutions such as banks.

In fact, more and more banks will start to manage various digital and crypto assets, such as: Bitcoin (BTC) and not just assets that we happen to find in various forms on the EOS blockchain, such as pBTC and pETHUse the Bitcoin asset, but with all the advantages and speed of the EOS blockchain.

In addition, Block.one, the company that created the software on the basis of the EOS blockchain EOS.io, has always been in line with the various American institutions, in particular with regard to the applicable law, has been de facto awarded for everyone who works with wanting to be compliant with the American legal system and not and consequently an excellent blockchain that can be exploited for all those financial institutions and not like banks that can work in a secure system that has already been approved by the legal system, also because there is a lot of understanding and cohesion especially with the American establishment and Block.one, which led to the EOS blockchain being viewed as a reference blockchain that should be exploited by a centralized system.

In the end, let’s not forget that ProfessionalThis is a programmable financing in line with the American legal system and therefore offers hybrid systems of decentralized financing with centralized financial elements such as KYC (know your customer) and therefore use the EOS blockchain to interact with centralized institutions such as banks. In fact, it would be quite possible to interact with your bank by exploiting and linking your EOS account, after this has been identified with a KYC procedure, which is particularly useful for anyone who has an institutional position and is therefore directly active.

To learn more about the EOS blockchain in detail, I refer you to the book Mastering EOS – Practical Guide for Beginners and Advanced This can be downloaded free of charge for all Amazon Kindle Unlimited users and is free for 30 days.

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