Processing Speed

In this case, processing speed refers to transaction processing speed rather than computer processing speed.

The world of banking and finance is where regulators and intermediaries are most prevalent and where reconciliation has the biggest impact. Therefore, the industry is a good candidate for Blockchain solutions.

However, the same industry needs transactions to be processed in near-real times in many situations. For example, stock prices fluctuate so rapidly that even granular delays in processing a buy or sell request can result in a huge financial impact. Even for simpler transactions, such as online payments, feedback is expected immediately to confirm the sale.

With a centralized system, these transactions can be processed rapidly since there is no need to wait for a multi-party consensus. The transaction is processed with concurrence from just three involved entities, the sender and recipient and the regulator, and thus can be completed near real-time as required.

In a Blockchain solution, if a transaction needs to be approved by all or even a majority of the participants, the process could add some delays.

Therefore, as the technology evolves to achieve the same transaction speed and throughput as current systems, industries where transactions can happen asynchronously or with some delay are better candidates for Blockchain solutions.