Blockchain: it's about trust, not transactions
Credits' Chairman of the advisory board, Michael King, argues that distributed ledger technology (DLT) is disruptive mainly in the way we think rather than a straight replacement of process.
Everywhere one looks there are a number of projects quietly building value and developing some meaningful exploration of Distributed Ledger technology (DLT). The projects are now starting to surface as the industry moves past the most euphoric stage of the hype cycle and we are seeing DLT discussions in an ever-broadening range of applications, many of which are focused on specific instruments or areas.
I strongly believe that the technology is about trust rather than transactions and that DLT is disruptive mainly in the way we think rather than a straight replacement of process. I also think that it is fair to say that the financial services world is steeped in the hub and spoke mindset based on centralised databases and that most discussions are usually around process and protection of legacy not outcomes.
Innovation takes time and needs momentum to build lasting change but the one fundamental is, in my mind, do I trust that the data I am using is good and I can rely on it. From this there are many spin offs that can change the way we all do business it just requires a fresh mind and outlook.
As an example, there is some discussion in the “regtech” space on the potential of a “regulator app” to allow any regulator instant access to any data within the financial chain. Having the “regulated” firms use a permissioned blockchain could ensure that all players capture data correctly once within their firms and remove the need for a “centralised” data store that constantly need upgrading and monitoring with the risk that a single cyber-attack could capture all relevant market or individual data in one go.
Revolutionary - No Reputationally - Priceless
At Credits we are focused on building the infrastructure, not the individual application, so that firms, institutions or indeed government can develop fast client focused use cases and applications without worrying about the delivery of private and/or public chains. Our approach is to partner with enterprise developers who have the expertise and capability to work in many different industries as recently demonstrated by our Skyscape partnership.
About Michael King, Chairman of the Advisory Board, Credits
Michael has more than thirty years experience in the international finance arena across multiple disciplines and is a partner in various consultancy and software companies. He has a proven track record in devising and executing business strategy combineong leadership and motivational skills.
Michael King’s expertise extends to virtually all financial services, payment services and systems, electronic marketplaces, e-commerce and market infrastructures. Before joining Credits, Michael worked at SWIFT in multiple leadership capacities in Europe, Asia and the US.