Ensuring that the digital currency industry does not fragment into a range of incompatible solutions is becoming increasingly essential as more and more money is flowing into the vast number of disparate projects currently under development. The danger of not having cross border or even cross company compatibility within the financial services industry is that blockchain ends up being as restrictive as the system it is trying to replace, going against the whole ethos of the technology. To combat this, the ISITC has proposed new blockchain benchmarks to create a more homogeneous architecture across the industry.
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The last few years has seen rapid growth within the digital currency industry, with huge amounts of startup capital feeding into rapidly growing numbers of new project. While the projects being launched have covered an incredibly wide range of applications and markets, a significant amount of both the capital invested and the businesses involved are focused on blockchain applications within the existing financial services industry.
Because all of these independent projects are resulting in a wide array of disparate blockchain solutions available to the market, and at this point the obvious issue of competing standards is already becoming a worry. With that in mind, the European Branch of the International Securities Association (ISITC) has recently revealed its proposal for a series of 10 blockchain benchmarks that it suggests will provide a standardized framework for the industry.
Part of a global effort to ensure blockchain can bring a new wave of decentralized data sharing applications without the compartmentalized, proprietary nature of the infrastructure it seeks to replace, these standards should bring new levels of interoperability and cross border efficiency. However, that is not the only aim, by bringing in such standards, it is also hoped those efficiency savings in both operation and global infrastructure will provide increased profit margins over time for the companies that adopt the distributed ledger technology, providing a valuable and persuasive argument for such adoption.
The proposed standards cover a wide range of operations, including blockchain resilience, latency, auditability, scalability, data structure, governance, legal jurisdiction, regulation and software version control.
Technology on a global scale needs these kind of standards, perhaps the best illustration of the benefit of that of the Web itself, which Tim Berners-Lee recognized in the very early days and founded WC3 to ensure that web based advancement adhered to consistent, compatible standards. Imagine the internet experience today if various parts were not compatible with each other. That is what makes this move such an important topic for the cryptocurrency industry to get to grips with early in the technology’s life. The long term benefits will be incalculable.