There has been much talk, many new startup launches and a lot of fund raising behind the focus of the cryptocurrency industry on blockchain applications within the traditional financial industry infrastructure. Although so far little has been seen beyond research parameters and ideas, a recent financial industry event held in Boston gave industry leaders a chance to explain what the future holds for blockchain and when results of all this activity are likely to be seen. Learning how quickly and in what areas the blockchain technology will be used can provide a valuable insight into the future of digital currencies and the whole industry.
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Interest within the financial industry for blockchain, the underlying technology behind cryptocurrencies, is showing no signs of waning. In fact according to a recent event in Boston hosted by The International Securities Association for Institutional Trade Communication (ISITC) things are moving swiftly and results of the push for blockchain research should see results much sooner than many thought.
Across a varied panels hosted at the event the most interesting ideas and implementations of blockchain, as well as the likely timescale for those integrations were suggested by industry leaders, providing an interesting insight into the near future of the cryptocurrency industry. Many suggested that within two years the first production-scale distributed ledgers could be rolled out, although that was tempered with the idea that it would still be ten years or even more before wide scale adoption of blockchain would be seen throughout the financial industry.
The suggested timeline by Chris Church, chief business development officer for Digital Asset Holdings, was that 2016 is a year of proof of concept work for many in the industry, with 2017 seeing the first live applications of the technology resulting from them. However, he thought 2020 was the point we would see significant adoption of blockchain solutions with 2025 being the point where blockchain adoption became an industry norm.
All involved highlighted how much the adoption of blockchain will have on the way financial markets operate, with the suggestion that the technology has the capacity to transform how they are perceived and operated completely. This is important for all aspects of the digital currency industry, although many prefer to focus on Bitcoin or other digital currency offerings, it is the potential of the technology for the financial industry that is driving investment, and that is good for the industry as a whole. In this respect, understanding the expected timeline and how blockchain is being perceived as becoming an integral aspect of financial market operation is a robust sign of an industry with a healthy future.
There is a real importance to the adoption of blockchain technology in that it gives the entire cryptocurrency industry a credibility that it still struggles to maintain in the face of scaremongering and even outright lies by some detractors. For an often ill-informed general public, it will become much harder to convince them that a digital currency is somehow insecure or dangerous when the technology behind it is being used by their own bank. In this regard, the earlier this integration happens, and the more successful it is, the better for all digital currency applications.