Vertical Markets

Blockchain report

by Mark Rowe

BSI (the company British Standards), has commissioned a report on Blockchain which covers that technology – and the role standards must play if the British economy is to be fully use it.

Blockchain refers to a type of database spread over multiple locations and which can be used like a digital ledger to record and manage transactions. In practice, Blockchain works by simplifying the automation process, reducing the need for third-party intermediaries and providing an audit trail – as transactions cannot be deleted or altered – decreasing the risk of fraud. Hence the prospect of more efficiency and cost savings for businesses and users.

The report – Distributed Ledger Technologies/Blockchain: Challenges, opportunities and the prospects for standards – was created with the policy research body RAND Europe.

Much as social media has shaken up traditional newspapers, Blockchain presents a way to transform how businesses, entrepreneurs and the public interact with one another in an increasingly globalized age where cyber security remains a concern, the authors suggest. The potential for Blockchain to improve resilience and security in transactional systems and supply chains will likely be of interest to organizations of all sizes, the report suggests.

Britain’s fast-growing ‘sharing economy’ could also gain from adoption of Blockchain, as the technology has the potential to enable new business and economic models. Sectors cited in the report as especially likely to benefit from the new technology include finance, healthcare and pharmaceuticals, regulated sectors where secure data processing and storage is not only expected but mandated.

Standardisation can make Blockchain a mainstay of organisations, it is suggested. Crucially, standards can play a pivotal role in ensuring interoperability between business platforms which have adopted Blockchain, reducing the risk of a fragmented ecosystem of Blockchain adopters which could diminish the cost and operability.

Challenges remain; in common with many new technologies, the report noted a widespread lack of name recognition of what Blockchain is and what it can do – adding that many people incorrectly conflate Blockchain with bitcoin. Establishing a consensus on consistent terminology can go a way towards helping a new technology enter the mainstream, and standardization is expected to play a key role in aiding industry-wide consensus on terminology, according to the report.

Anne Hayes, Head of Governance and Resilience at BSI, said: “Establishing national and international standards on Blockchain would go a long way towards assuaging the worries industry leaders may have about adopting a new technology. A free-for-all, with no accepted industry-wide standards on Blockchain, would hinder adoption of the technology amongst organizations which could benefit the most from it.”

And Salil Gunashekar, the principal investigator and a senior analyst at RAND Europe, said: “The overall consensus from the evidence was that standards in different areas could play an important role in Blockchain achieving recognition and widespread adoption. Research for the report was carried out using a mixed-methods approach involving a rapid review of the literature, in-depth interviews with stakeholders from public and private organizations, and an internal workshop.”

Viewed the report at: https://www.bsigroup.com/en-GB/Innovation/dlt/.

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