The blockchain is a new reality that promises to change forever the way we manage our information in the digital world. This technology allows data and capital to be transferred in a completely secure manner thanks to sophisticated coding and encryption. Aware of the change that this disruption can have in the world of banking, at Santander we want to be pioneers when it comes to applying it to our services.
You may have heard this term and still don't know what it means or the impact it could have on your life. As happened with the incursion of the Internet, the blockchain development could change our way of relating to each other in the digital world of banking, favoring, among other aspects, transactions, security or the management of the online entity. In addition, it allows a reduction in the necessary bureaucracy in financial operations and improves transparency.
The blockchain or ‘chain of blocks' is a technology that allows the creation of networks of devices without the need for a central and localized server to connect them to each other. It could be said that it works like an account book, where purchase, sale or any transaction is recorded. In order for these movements to be registered, they must have been approved by the rest of the participants in the ‘block' network, that is, the users of this technology. And, once the information is entered in them, it can no longer be deleted, only new records can be added.
A fast and fraud-free payment alternative
One of the advantages of this tool is providing the possibility of making economic transactions quickly and safely against possible fraud and manipulation, since it uses encryption and coding. This allows companies to offer a more global payment alternative to customers, without jeopardizing the security of both parties.
Another great benefit that it offers is the possibility of implementing a completely transparent business system in which we can all see the status of the accounts registered in “this great book”, that is, what goes in and what goes out, in real time and with a low cost.
But the blockchain does not only work to carry out economic transactions. With this technology, important company documents and information can be stored and transferred without the possibility of someone accessing it without your consent. And what is most important: without the danger of it being modified. To guarantee the security and transparency of voting, at Santander we use this technology to vote at our General Shareholders' Meeting.
We invest in security and transparency
Aware of the impact that blockchain can have on the financial world, we have launched the first bond with end-to-end blockchain technology, which is a first step for a possible secondary market for tokenized securities in the future. The $20 million bond will remain on the blockchain for its entire life, until maturity.
For the issuance of this bond, we have used the public Ethereum blockchain, one of the most advanced open source blockchain technologies. This has allowed us to securely tokenize the bond and record it in a permissioned manner on the blockchain .
“Santander is at the forefront of the process of deep digital transformation of the financial sector and this operation is an example. We want to take advantage of any technology that speeds up this process so that our clients progress and be faster and more efficient, and the blockchain is one of those technologies,” said José García Cantera, CFO of Banco Santander.
More and more people and companies are entrusting their data to this technology for the reasons already mentioned. Blockchain becoming a daily reality is something that could happen very soon and we, committed to innovation, want to contribute to a technology that helps create a more open, connected and transparent society for citizens.
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