Blockchain technology to have standards by 2021 - Moody's
|- The experts believe that the lack of standards is bad for industry development.
- The standards will increase blockchain interoperability and promote technology adoption.
At this stage, blockchain technology has no common standards, which causes may troubles when it comes to blockchain interoperability and compliance. However, the situation may change by 2021, accoding to the recent report published by Moody's.
The experts of the rating agency believe that standardization will promote asset securitization based on blockchain technology.
Standardization is regarded as a time and cost-effective tool that will help to eliminate transaction parties and make data more readily available. Moreover, unified standards will increase blockchains interoperability.
Currently, the lack of standardization and interoperability make all the processes less efficient and increases risks for the parties involved, the experts believe.
"Standardisation of blockchain technology would make its benefits more accessible for securitizations. Standardization would improve interoperability across systems and market participants, but also reduce counterparty concentration, operational and legal/regulatory risks for transactions that use blockchain technology," Frank Cerveny, VP-Senior Research Analyst at Moody's commented.
In 2016 the Technical Management Board of the International Organization for Standardization (ISO) approved the creation of a new technical committee on to standardization in the field of blockchain - ISO / TC 307.
In March 2017, the committee by Australia published the first roadmap for developing blockchain standards.
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