Blockchain Business Integration Will Require Accommodations From Financial Firms
To Accommodate Blockchain, Finance Firms Have To Replace The Underlying IT Infrastructure
We have been hearing news about blockchain technology being adopted by several leading financial companies. The technology is finding various applications in making traditional establishments faster and efficient. According to Libra’s Jeremy Drain, before entities reap these benefits, they have to fundamentally change their supporting IT infrastructure.
Speaking at the ScotChain18 conference in Edinburgh he stated that there’s an assumption by most firms that their prevalent infrastructure will accept crypto and blockchain. It will be harder than it looks as most of the existing data are way too different than the ones produced with blockchain.
At the conference Drain wasn’t the only one who thought that blockchain cannot be integrated into the modern day financial industry without some unavoidable modifications. Kent McKenzie, the risk advisor for RegTech and Apolline Blandin from Cambridge Centre of Alternative Finance both pointed out the regulatory challenges attached to using blockchain for governments. They even added that a standard must be set for the industry if it is to successfully penetrate the financial services industry.
“Without exception, the success stories seem to have one characteristic in common: they needed the right infrastructure in place to ensure the rapid, seamless, and secure transmission and processing of data on the blockchain. Whilst this is not an issue for many startup ventures in the blockchain space, this may mean a complete rethink for large corporates looking to keep pace with this foundational technology,” added CEO of recruitment firm MBN Solutions.
Notably, in June, Moscow exchange declared that it is building an IT infrastructure that gives companies the ability to carry out ICOs. The company's CEO, Alexander Afanasiev said that the exchange will not list tokens rather only issue futures contracts for ICOs which provides information to token issuers about what their liability is.