Blockchain technology will most likely be standardized by 2021, according to American business and financial services company Moody’s.
Per the research report published on Sept. 5, these standards will probably be established in the blockchain industry by 2021 and will be positive for “future securitisations using the technology.” The company claims that this could result in time and cost savings, automation and faster data availability.
Blockchain interoperability to come
Furthermore, Moody’s Investors Service states that the industry standards could also bring better interoperability and other operational efficiencies. Senior research analyst at Moody’s Frank Cerveny noted:
“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 claims that this initiative is primarily driven by the International Organization for Standardization. The researchers also note that the current lack of standardization and interoperability limits operational efficiency gains and heightens potential risks.
As CryptoX explained in a recent article, blockchain interoperability is the ability to share information across different blockchain networks without restrictions.
