Central Securities Depositories (CSDs), in the post-trade environment, are changing their mind on new technologies and on their future position in the blockchain world. Increasing regulation, legacy systems, and costs pressures, are drivers for CSDs to at least embrace some aspects of the blockchain. They are increasingly considering them as an enabler of more efficient processing of existing and new services, instead of a threat to their existence. CSDs are likely to play an integral role in any blockchain environment. But they will look quite different from we know them today. Yes. CSDs are not expected to disappear in a blockchain world.
What will bring 2018 for blockchain and distributed ledger technology? How will Bitcoin and other cryptocurrencies develop? And how the acceptance of blockchain technology will evolve in 2018? In this blog, I like to share my ideas and opinions on what trends and developments to look for in 2018. Let’s go!
Ripple’s enterprise blockchain, network, RippleNet — is constantly growing. Now, more than 100 financial institutions — across banks, payments providers and specialised companies — wish to use the power of Ripple’s blockchain technology “to provide a global payments experience that delivers instant, certain, low-cost global payments to their customers”. Next to established banks like Banco Santander, Credit Agricole, Ripple is increasingly concluding partnerships with payment institutions that are involved in or dealing with emerging markets.
Several Hyperledger initiatives have been launched in 2017 with the aim to provide an open, smart, interoperable technology infrastructure that connects the global ecosystem. We may expect to see several new Hyperledger projects, providing new types of ledgers, new versions of existing ones and specially amazing tools to work with. We will see new practices for legally binding of distributed ledgers and smart contracts as well as first impacts to industries using it. And we will see more projects and tools going from the incubation to the production-ready status.
A Blockchain Gateway platform should serve as an extra layer between existing enterprise applications and blockchain(s). The Blockchain Gateway offers seamless, easy, fast and secure integration of their existing applications and devices with one or more blockchain networks. The intuitive user interface makes it easy for corporates to configure all business critical configurations with low development efforts without the need of specific blockchain expertise. The Blockchain Gateway may bring real value to multiple parties within blockchain networks by simplifying integration of existing applications with one or more blockchain networks, speeding onboarding of participants and delivery of blockchain projects.
Many banks and other financial institutions have entered the blockchain area for fear of missing out, investing heavily in research, proof of concepts, and pilots to gain blockchain know-how. Despite many successful trials, up till now they have not led to real-world use. We are still waiting for the first important blockchain application to make a real impact. Financial services firms that arguably have the most to gain from blockchain are still staying behind expectations in real world acceptance. Blockchain could one day disrupt the finance world, but that will take at least another five to ten years.
A large scale adoption of blockchain by corporates and others has long time been hindered by the lack of options. But that is changing. When interacting with the blockchain they have now two options. They can either set up their node directly, thereby removing the “invisibility cloak” of blockchain. Or they can decide to let someone else do that for them. And here comes BaaS or Blockchain-as-a-Service in scope. BaaS or Blockchain-as-a-Service is comparatively a new blockchain technology, that can be easily integrated in existing corporate infrastructures.