As Infosys, the IT consulting company, note the growing interest in blockchain technology within the traditional financial service industry has often been highlighted as the route to wider spread acceptance of cryptocurrencies over the next decade or so. However new analysis of the progress from Infosys suggests that with ongoing integration, adoption of the blockchain technology to replace the more traditional financial service technology of today will actually gather pace and arrive much more quickly. Is this a realistic analysis, and what does it mean for the industry itself?
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One of the most encouraging aspects of digital currency progression over the last two to three years has been the widespread interest in blockchain technology from mainstream finance and indeed many other industries. With big name banks and financial institutions investing serious money into blockchain research, many have thought this a sign that over the next decade the underlying technology of cryptocurrencies will become part of the day to day working of global finance in some capacity. This in turn will help wider acceptance of cryptocurrencies themselves and promote the growth of the industry as a whole.
However, while this scenario seems great news for the industry, some companies are now suggesting a much smaller timeframe, Infosys, a large IT consulting company, suggests that work on blockchain technology will actually benefit from the sheer pace of technology change and the timeframe will be significantly reduced as a consequence. Indeed, they suggest that the process of continuous integration means that the technology will soon be putting pressure on the existing legacy solutions within the financial industry.
While the financial industry is starting small, much research is going into things like blockchain based document management for instance, once integrated, the idea is that this accelerates the integration of further uses of the technology, and that the solutions that provide efficiencies will be important, rather than the underlying technology. In other words, blockchain will be a vehicle for change, rather than their being change just to use blockchain technology.
For the industry this is extremely important, and the fact that major companies are discussing the innovation this way is highly promising. This accelerated adoption does mean that the digital currency industry has a genuine opportunity for growth, integrating into a financial system that shares the same underlying tech will become a much less cumbersome approach longer term, and the opportunities for the industry to take full advantage should be seen much sooner than anticipated.
With this in mind, it is important for the wider industry to ensure that it is ready for the likely uptick in interest over the coming years, both from major organizations within the financial industry and end users, and this makes overcoming any capacity and infrastructure deficiencies ever more vital.