1. How can blockchain technology create value for Deutsche Bank?

2. There are several different ways the

3. technology could be introduced in various organization and industries to create value. It
is
4. stated that the technology has the potential to become the system of records for all
transactions.
5. In the banking industry, for example, blockchain technology can create a lot of value in
different
6. parts within the industry. Firstly, blockchain technology reduces transaction time, which
can be
7. valuable for any industry, not only the banking industry. Secondly, technology enables us
to
8. create “smart contracts”. Smart-contracts are scripts that perform some determinate,
event-
9. driven computation based on some inputs, and are considered to be the most
transformative
10. blockchain application at the moment. The main value comes from adoption and
facilitation by
11. the blockchain.
12.
13. The technology is indeed interesting and has huge potential. The technology allows the
millions
14. of people without bank accounts the opportunity to create some financial alternatives. If a
major
15. cryptocurrency, like Bitcoin for example, becomes a globally accepted currency,
everyone in
16. the world would just need a digital wallet to receive and make payments.
There are several different ways the technology could be introduced in various
organization and industries to create value. It is stated that the technology has the
potential to become the system of records for all transactions. In the banking industry, for
example, blockchain technology can create a lot of value in different parts of the industry.
Firstly, blockchain technology reduces transaction time, which can be valuable for any
industry, not only the banking industry. Secondly, the technology enables us to create
“smart contracts”. Smart-contracts are scripts that perform some determinate, event-
driven computation based on some inputs, and are considered to be the most
transformative blockchain application at the moment. The primary value comes from
adoption and facilitation by the blockchain. The technology is indeed exciting and has
vast potential. The technology allows the millions of people without bank accounts the
opportunity to create some financial alternatives. If a significant cryptocurrency, like
Bitcoin, for example, becomes a globally accepted currency, everyone in the world would
just need a digital wallet to receive and make payments.
2. What are the challenges in commercializing blockchain technology in the banking
industry?
Initial Challenges
Blockchain technology looked set to transform essential parts of the financial system as it
played its role in the unstoppable onward march of digitalization. While it remained
unclear just where the decentralized register principle would ultimately prevail, this
technology most certainly had the potential. With this mind, they sought out to
experiment with technology. However, there were obstructions facing them initially:
Prior expertise: Although the gains of using the technology might have been noticeable,
no internal team members had the technical expertise or prior knowledge to integrate the
system into any of the operations such as trading, securities settlement, and clearing or
retail banking.
Cultural Resistance: The project, seemingly innovative, needed to overcome the initial
resistance of apparently replacing people’s jobs in the company. Not only did it need to
be inclusive of all stakeholders in the organization, but also to get their acceptance to
move potential projects forward. Finally, the futuristic planning for this technology’s
usage meant that employees had to get out of the short-term mindset, which was
prevalent in the financial sector.
Organizational backing: The sudden conceptualization and proposal of this idea meant
that the project required resources and funding that the company had not allocated in its
calendar year. It took some decision-making on the COO’s end to grant the money
needed to get the ball rolling.