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The Invisible Ledger: How Banks Are Harnessing Blockchain Without Cryptocurrency
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TechStory
Banks are adopting blockchain technology at an unprecedented scale, utilizing it to upgrade aging infrastructure, slash operational costs, and secure global data—all without ever touching a public cryptocurrency.
The Great Divide: Permissioned vs. Public BlockchainsTo understand how banks use blockchain without cryptocurrency, one must first grasp the critical difference between public and permissioned networks.
In a permissioned blockchain, there is a central authority or a consortium that explicitly grants access.
A prime example is J.P. Morgan’s Onyx platform, which handles billions of dollars in intraday repo transactions and payments using a permissioned blockchain network.
By tokenizing these assets on a blockchain, banks can achieve instantaneous, atomic settlement.