- Current IT infrastructure might not be adequate enough for emerging technologies
- Blockchain and cryptocurrency standardization remains an obstacle
- The difference in data structure could render the current IT infra obsolete
In its third edition, the annual blockchain technology-centric conference dubbed Scotchain, held in Edinburgh, Scotland, saw the experts speak about the risk of potential disruption of current IT infrastructure in financial firms by emerging technologies like DLT and cryptocurrencies, reports The Scotsman, November 9, 2018.
Cryptocurrencies Might Disrupt the Existing IT Infrastructure
Speaking about the effects blockchain technology and digital currencies might have on world commerce, Jeremy Drane, CCO, Libra, stated that the majority of the companies assume that their current information technology infrastructure will readily integrate crypto and blockchain, however, due to the vast difference in data structure; it is not possible at all.
“We have been educating customers in what are the minute differences between data structures that don’t allow your systems to work and that it is better to buy new than repurpose your old software.”
Kent McKenzie, Risk Advisory Leader for Fintech and RegTech, Deloitte, highlighted the current regulatory challenges that must be overcome by blockchain and cryptocurrencies in order to work in unison with the governments the world over.
Perhaps one of the biggest Achilles heels of the cryptocurrency industry is its lack of standardization. Apolline Blandin of the Cambridge Centre for Alternative Finance addressed the audience stating how her firm is in the process of creating a framework aimed at bringing a degree of standardization in the industry.
Reiterating a similar opinion for standardization in the industry was Casey Kuhlman, CEO, Monax Industries. He stated:
“This is an immature software and the value proposition is not clear due to the different tech involved in each cryptocurrency solution. Projects like the one happening in Cambridge will give much needed clarity and let us talk about cryptocurrency in a more distinguished way.”
Changing the IT Infrastructure Could Be a Problem for Large Corporates
Michael Young, CEO, MBN Solutions, highlighted an important point which is pertinent to the swift adoption of blockchain technology and digital currencies. He pointed out that businesses which have already advanced in the DLT space have realized that it cannot be done without upgrading the available IT structure for the next generation of cloud and crypto services.
More importantly, he also pointed out that while new venture and startups in the blockchain domain might not find this to be a reason for worry, it may prove to be a thought of much concern for large corporations looking to keep up with the emerging technologies of the 21st century.