A new study carried out by the Massachusetts Institute of Technology (MIT) predicts blockchain technology to gain mainstream adoption this year contrary to past researches.
Blockchain Gaining Traction
Previous studies and conservative critics haven’t failed to point out the notion that blockchain technology along with all forms of decentralized ledger technology is nothing but overrated. The argument remains that the technology offers nothing but hype and practicability on a larger scale is inefficient and untested. However, the closing stages of last year coupled with the dominant start of this year are more than quelling those doubts. Institutions are now implementing blockchain technology as a sole and independent technology now, and what’s more? They are here to tell the good story.
It started from the Middle East when central institutions in Dubai began to implement blockchain and AI heavily in their oil dealings. Other institutions have joined the train since then with the most prominent of them turning out to be familiar financial giant HSBC Bank Plc. As earlier reported, the London-based bank reported a significant increase in efficiency and reduction in the cost of up to 25 percent within two months of their ‘complete’ switch to blockchain technology. HSBC represents the first major institution to pass the blockchain ‘test phase’ to the main implementation. Little wonder MIT thinks the first step is only the beginning and the progress faster than earlier expected.
The Signs are Coming In
In line with general consensus, institutions hold the keys to mainstream adoption of a decentralized technology if it would ever become mainstream. And how quickly a large number of institutions are now struggling to tussle. One might discard the heated tussle to spruce up blockchain patents one after the other—like Ali Baba, IBM, JP Morgan are doing—and attribute them to seeds for future harvests; but other developments might not easily skip the eye.
Huge developments such as Fidelity Investments’ new platform offering digital asset solutions to its clients and New York Stock Exchange owner, Intercontinental Exchange (ICE) imminent plans for virtual assets are more than ready to take blockchain technology to the next level of adoption.
Michael Hull, Chief Editor of FamilyOffices, weighed in on the influence of financial institutions on blockchain technology.
“The financial sector is top on the list of sectors that will lead in integrating blockchain,” he said.
“It has the potential to provide alternative payment and settlement methods that are not only faster, but also cheaper. But most importantly, it is its transparent, immutability and security features that make it an ideal technology in the financial sector.”