New research conducted by Moody’s showed that blockchain technology standardization will likely be in place by 2021.
American Financial Services Report
According to a recent report from the American financial services company, industry standards will be established in two years and will be a step forward for “future securitizations” via the technology.
Moody’s also claimed that standardization will lead to more savings in terms of time and costs. The report explained that these savings can happen through faster information availability, increased automation, and the removal of transaction parties. The company’s Investors Service also believe it will enhance interoperability and other working efficiencies.
Frank Cerveny on the Topic
Frank Cerveny, Moody’s VP-Senior Research Analyst, explained that standardizing blockchain would make its perks more open for securitizations. He also said that it will minimize counterparty consolidation, operational and regulatory liabilities for transactions that utilize blockchain tech.
Standardization would promote interoperability between blockchain systems, applications developed on the same structure as well as between legacy IT systems and blockchain. It will also facilitate the creation of blockchain-powered ecosystems, which would cut down the need for extensive and repetitive reconciliation procedures over transaction parties.
Moody’s report also revealed that the International Organization for Standardization (ISO) is the driving force behind the initiative to systematize the technology.
The company’s researchers also pointed out that there are numerous independent blockchains now, all lacking in interoperability and standardization. This increases risks and hinders operational efficiency.
Blockchain interoperability is the capacity for various networks to share data without restrictions. The feature will allow for mass adoption to become possible and will push the industry to develop further.