Blockchain will become more mainstream by 2021 as standards are developed for using the technology, according to a Sept. 5 Moody's Investors Services report.
"Standardization of blockchain technology would make its benefits more accessible for securitizations," said Frank Cerveny, vice president and senior research analyst at Moody's. "Standardization would improve interoperability across systems and market participants, but also reduce counterparty concentration, operational and legal/regulatory risks for transactions that use blockchain technology."
Additionally, by standardizing blockchain use, there would be improvements in interoperability and communication between decentralized ledgers and legacy systems. The investors also predict through standardization companies would reduce the need for length and redundant reconciliation processes across transaction parties.
Today, there are many independent blockchain platforms, which has limited operational efficiency gains and heightens risk.
To read the full report, click here.