Andrew Dare, architect of financial services innovation at HPE in U.K, stated:
“Blockchain presents an opportunity to bring disparate things together and allow secure and non refutable records of transactions to be done anywhere you need them to be done quickly, securely and with little chance of fraud. Therein lies the true value of the technology.”
Blockchain, reinventing practice of business
Dare and HPE believe that the Blockchain technology is still at its infancy. Its potential goes far beyond its applications for the financial industry because the Blockchain technology’s ability to store information on an irrefutable ledger can be efficiently utilized for various industries.
However, Dare notes that irrefutability and decentralization are two of the most important features of the Blockchain network as they enable participants in the network to send payments to each other without mediators. They could also allow banks and major financial institutions to conduct labor-saving operations.
Currently, a massive number of banks and financial establishments are gearing towards the development and implementation of the Blockchain technology. But, even multi-billion dollar institutions like Accenture have proposed the concept of editable Blockchain.
In essence, a centralized or an editable Blockchain refers to a network that can be controlled and manipulated by network administrators. In a more technical sense, an editable Blockchain poses absolutely no difference than traditional SQL databases.
HP understands that for Blockchain networks to function properly without major issues revolving around security and external attacks, decentralization and non-refutability are crucial.
Regulations vs. Blockchain
As the Blockchain market increases in size and value, more companies like HPE are beginning to understand and appreciate the core concepts and principles of cryptocurrencies and Blockchain networks.
The real barrier between Blockchain implementation and development forms when banks and financial institutions come to a realization that with the current financial regulatory frameworks in place, it is virtually impossible to integrate a decentralized network.
This barrier is what essentially led Accenture to pursue the concept of an editable Blockchain. If banks fail to demonstrate the ability to control and manipulate transactions, central authorities and established regulators will refuse the implementation of the Blockchain technology.
For the $1.5 bln Blockchain market to work, banks must begin to address the issue of implementing the Blockchain technology and decentralized networks without colliding with strict financial regulations.
As HPE states, the Blockchain technology and Blockchain-based platforms will fail to operate unless proper security measures are set in place. Thus, for the benefit of banks and their consumers, a more intelligent allocation of their capital and talents will be figuring out a way to embed decentralized infrastructures onto existing systems rather than attempting to alter the core principles of the Blockchain technology.