According to the announcement from Moody’s, a company that offers research services, the next standardization of the technology Blockchain could bring important benefits for the securitization. It is likely that these upcoming standards, which are scheduled for 2021, will be positive for future securitisations using the technology. This standardization would save time and costs, since it provides a data availability of more rapid, in addition to the elimination of the parties of the transaction and automation. In turn, this standardization will bring other benefits, such as improved interoperability and other operational efficiencies. The Senior Research Analyst of Moody’s, Frank Cerveny, also explained that: “The standardization of the technology Blockchain would make its benefits more accessible to the securitised exposures (…) The standardization would improve interoperability between the systems and market participants, but would also reduce the concentration of the counterparty, operational risks and legal / regulatory for the transactions that use the technology blockchain”. One of the advantages outlined in the report, is that it will improve the interoperability between the chains of blocks, the applications created in the same chain of blocks, as well as between the chains of blocks and computer systems inherited. This would facilitate the establishment of ecosystem-based Blockchain, which eventually would reduce the need for processes of reconciliation and long redundant between the parties to the transaction, and replace sequentially actions with parallel execution. The whole process of the global standardization of Blockchain is being driven primarily by the International Organization for Standardization (ISO, for its acronym in English). Currently, there are many strings of independent blocks, with a lack of standardization and interoperability, which limits the gains of operational efficiency and increases the risks. In other words, the standardization does not only provide the advantages outlined above, but it will allow the industry to improve the level of efficiency and safety. Since a couple of years, the technology of chain blocks has become one of the most popular innovations all over the world, calling the attention of large technology companies such as IBM or Samsung. It is expected that this update will make Blockchain to become a technology that is much more requested by those companies that continue to maintain a stance of wary in front of the chain of blocks. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.
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