Two new reports by International Data Corporation (IDC) have highlighted the potential impact of blockchain technology on transactions, post-trade settlements, and payment strategies.
According to the press release, IDC Financial Insights released two new reports to explore the specific impact of blockchain and other distributed ledgers technology (DLT) on financial services firms. The reports by IDC are Business Strategy - Smart Contracts and Blockchain Ledgers and Compliance, and Business Strategy: Exploring Blockchains and Payment Strategy.
The Smart Contracts and Blockchain Ledgers and Compliance view the challenges and opportunities that firms face in developing and deploying smart contracts and distributed blockchain ledgers technology. The report has captured the attention of market participants across financial services as a valuable tool to help provide new products and services, improve compliance programs, reduce operating costs, and improve liquidity.
"We believe the blockchain ledger space will be a marathon versus a sprint given the myriad of technology, business process, and regulatory opportunities and challenges that need to be addressed and solved,” Bill Fearnley, research director, IDC Financial Insights reported. “Firms should be actively researching blockchain ledger solutions today and deploying experiments and proof of concept projects. As DLT gains momentum, it will be harder for firms to catch up with leading firms and market participants that are working with these technologies now".
Smart Contracts and Blockchain Ledgers report highlights include regulators who are interested in blockchain and smart contracts due to new transaction and post-trade settlement models which help in compliance programs and record keeping among others.
The Blockchain and Payment Strategy report’s purpose is to provide an objective overview of the current state of the technology and its potential in payments. It also explores questions about the technology's utility, scalability and reliability.
"Blockchain has emerged during a time of incredible change in the payment space. Even though banks and technology vendors are grappling with many issues right now, they should pay particular attention to blockchain,” James Wester, research director at IDC Financial Insights and author of the report, said. “Blockchain represents a complete shift in the way electronic transactions have been handled for decades, and participants in the market should begin thinking about how they will adapt to it".
Blockchain and Payment Strategy report covered multiple issues and challenges facing the development and deployment of blockchain technology including questions about reliability, regulation and scale. It also said that financial institutions, vendors, and participants in the payment space should understand and evaluate blockchain technology.
International Data Corporation is a market research company founded in 1964. Headquartered in Massachusetts, IDC specializes in information technology, telecommunications, and consumer technology. The corporation has approximately 70 offices grouped into Latin America, Middle East and Africa, Central and Eastern Europe, Europe, Asia/Pacific and the U.S.
