with Dr. Giuseppe Ateniese from the Stevens Institute of Technology, this new capability was designed specifically for enterprise and permissioned systems. It addresses a range of immutability challenges, including the legal right to be forgotten, human error and illegal action -- all issues of regulatory focus. It is meant to be used in the rarest of circumstances where there is no other reasonable alternative while at the same time provide a solution for addressing regulatory concerns about the new technology.
Keeping regulatory requirements in mind, banks need to examine their existing operational systems to determine where blockchain could add value in the long run.
Here is what banks should consider:
- Develop a clear plan of action: There is likely to be a long transition period where legacy infrastructure and distributed ledger models co-exist. What plans need to be in place to retire redundant systems earlier? Where will the biggest cost/ benefit ratios be found?
- Human capital impacts: Blockchain will require new expertise and skillsets. What hiring and training mechanisms need to be in place to attract or re-tool talent to effectively leverage this new technology?
- Middle and back offices: Changes to middle- and back-office functions could be profound and could include significant changes to data centers. One question to ask is what steps need to be taken to address computing power needs for blockchain and how can potential gaps be filled?
Putting the right pieces in place for blockchain initiatives, aligned to a clear vision, could help banks capture short-term opportunities while building a more efficient, secure and cost-effective operating model for a future where blockchain technology is the norm.
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