Ever since blockchain saw widespread use primarily within the crypto industry, it has gone on to be used in several sectors which include supply chain, finance, education and so on. It is apparent at this point that blockchain as a technology has a very wide range of applications and many believe that it will be a very widely used technology in the future even as cryptocurrency, its most famous product, continues to see worldwide dominance.
According to reports by Moody’s, an American business and financial services company, blockchain will be standardized by the year 2021 and this report was published on September 5, 2019.
According to the reports, standardization will be beneficial for future use of blockchain technology as it will ensure reduced cost savings, greater security and greater ease of application. These factors will be necessary if blockchain intends to see more use on the global stage.
Besides this, it also states that there will be better operability and interoperable efficiencies which, again, will be highly beneficial for blockchain use.
“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,” said Moody’s Frank Cerveny.
The movement to ensure this standardization in blockchain technology is reportedly being pushed by the International Organization for Standardization and should these efforts continue, blockchain is well on track to standardization in the next two years. Beyond just the benefit of increased growth, the current lack of standardization in the blockchain industry is a factor that hinders it’s growth and also increases its risk. While a lot of attention is given to the emergence of cryptocurrency and implications of its use, attention does need to be given to the blockchain aspect as well as there is far more potential for blockchain application beyond just cryptocurrency. Should the goal of standardization will be reached by 2021, blockchain can also achieve its full potential.