Moody Investor Research Predicts The Standardization Of Blockchain Technology By 2021
Frank Cerveny, VP-Senior Research Analyst at Moody's says:
“Standardisation of blockchain technology would make its benefits more accessible for securitisations. Standardisation would improve interoperability across systems and market participants, but also reduce counterparty concentration, operational and legal/regulatory risks for transactions that use blockchain technology.”
Currently, one blockchain has no knowledge of information that might exist in a different blockchain. For instance, the Bitcoin blockchain exists fully independently of the Ethereum blockchain in the sense that it has no knowledge of any information recorded there and vice versa.
However, this may be harder than it looks. It starts with the fact that there is not even a standardized language that is used to describe many of the terms related to blockchain technology. Regulators are still struggling with a consensus on technical terms and legal aspects.
Even though there are some standards in the blockchain ecosystem today, none of these “standards” efforts cooperate, nor actually engage the people or companies that are building this new transformational technology, blockchains. Standards efforts are everywhere, but the results are nowhere.
Global blockchain standardization is primarily driven by the International Organisation for Standardisation (ISO). Notably, in 2016 the Technical Management Board of the International Organization for Standardization (ISO) approved the creation of a new technical committee on standardization in the field of blockchain – ISO / TC 307. This will also include standards related to security risks, legally binding smart contracts, ontology, and taxonomy.