Moody’s Expect Blockchain Technology Standardization To Happen by 2021
US based financial service provider Moody’s has stated that blockchain technology will likely get standardized by 2021.
Furthermore, the organization has forecast that the standards will be firmly established by the blockchain sector by 2021 and will be beneficial for “future securitisations using the technology.”
Moody’s asserts that this could save costs and time, encourage automation and ensure quick information availability.
Additionally, Moody’s Investors Service believes that the industry standards could also result in improved interoperability and other functional efficiencies.
In this regard, Frank Cerveny, senior research analyst at Moody’s said:
“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.”
The announcement further asserts that this campaign is basically led by the International Organization for Standardization. The academics also pointed out that the lack of standardization and interoperability restricts operational efficiency benefits and increases probable risks.
Blockchain interoperability is the capability to share data across various blockchain networks without any limitations.