Blockchain offers a new approach to sharing data that could radically change the way transactions are processed and value is transferred from one party to another. Even though large-scale commercial use is still far off in the future, many people believe that blockchain has the potential to be as disruptive as the Internet wave of the 1990s, unleashing massive changes in the structure of the financial system. Venture capital firms are buying into this vision, betting hundreds of millions of dollars that somewhere among the exploding number of startups are the future giants of finance.

Meanwhile, the existing financial institutions are scrambling to assimilate this technology and use it to improve the way they do business. In the area of capital markets, for example, banks envision blockchain leading to dramatically lower costs and greater efficiencies by improving how transactions are processed, creating the foundation for a new generation of “smart contracts,” and eliminating many of the functions now managed by clearinghouse and other infrastructure providers. For that reason, many leading banks are rapidly building up their expertise on blockchain, searching for potential applications, and making their own investments in promising startups. One prominent example of this surge of interest and activity came in early May, when more than 1,500 people gathered in New York for a conference called Consensus 2016. The speakers included not only a crowd of blockchain evangelists but also a long list of blue chip companies that have jumped on the bandwagon. The event’s organizer, a news organization called CoinDesk, is emblematic of the new ecosystem emerging around blockchain. CoinDesk was founded in 2013 and aims to be the leading source of news about alternative currencies such as bitcoin and Ethereum, as well as the blockchain technology that makes these currencies possible. In 2015 it launched its first major event in New York in partnership with Citi Ventures, the technology investment arm of Citigroup. The conference attracted more than 600 people at the intersection between finance and blockchain and served as a springboard for this year’s event.

Both Summers and Hutchins spoke at Consensus 2016 about the tremendous potential for this new technology. Summers commented that blockchain not only could reduce the costs embedded in transaction processing and other financial processes, but also pave the way for new types of companies and services.

“When you reduce friction, the experience is that you make possible previously impossible imaginations and combinations, and you get benefits that you couldn’t have seen at first before reducing the frictions,” Summers said. “Even six years ago, the kind of efficiency about conserving on space and structures that Airbnb has made possible, or the kind of advantages in transportation efficiency from Uber, I don’t think those were imaginable. I think the gains will be of a qualitatively similar sort. This is why I think this is something that is potentially hugely exciting.” Look at where the capital is going. Investors have put money into a parallel financial services ecosystem where you have companies that are wallets, exchanges, financial service companies, miners, as well as universal companies in the middle. The capital is voting and the entrepreneurs are working to build much more than just the ledger or just the blockchain.

Finance differs from other industries that have been disrupted in one crucial respect, however. Finance is heavily regulated and cautioned that efforts to deploy this technology will not succeed without the support of central banks and other governmental authorities. In fact, Hutchins urged the attendees to “embrace regulation” and recognize that they will have to work within existing legal and regulatory frameworks.

This theme of having to work within existing frameworks came up frequently during the conference, as various blockchain companies talked about their efforts to partner with financial institutions. While some companies are working on disruptive alternatives, particularly in the area of payments, many others want financial institutions as strategic partners that can provide domain expertise and regulatory recognition.

PAX PAGO— Develop Ecosystems Around South America

PAX Pago is focused on economic stabilization through a new currency revolution. It’s a culmination of market conditions driving the major reinvention of domestic and international trade in South America. The long term vision is to build a foundation for Smart Countries to achieve economic independence in the near future. We’re living in a digital world. Everything around us is constantly changing. Blockchain is the world’s leading software platform for these digital assets. This new technology is building a simple, innovative and better financial system for anyone.

PAX Pago is aiming to achieve a Payment Platform that is able to fulfill all recognized monetary challenges that include being base unit of account and medium of exchange for the purpose of empowering Smart Countries. Further expectations will prove central to the development of a host of core elements of the overall distributed ecosystem, whether prediction markets, lending facilities, and insurance vehicles, in addition to a variety of other dApps, only reinforces this sense of anticipation and possibility. The project will create the ideal system for token transfers. The intermediate goal is to offer PAX Pago users a cost-effective and faster alternative to stabilize their funds and provide liquidity.

The blockchain database is distributed across a network of computers, leaving no place for hackers. Its system is completely transparent, where all users can see the transactions and changes made on the public blockchains. That is why many industries are working on blockchain implementation into their sectors, and there are more and more blockchain projects as the days go by.

PAX PAGO team believes that it is important to know how to build trust and transparency into PAX PAGO project, during the whole process. We think that the main recommendation for PAX PAGO project is to maintain the credibility . This means that we have to be honest, real, open, and available for our clients at any time. PAX PAGO team never forgets that the members of PAX PAGO community will see if our project is gaining success.