Accenture managing directors Owen Jeff and Sigrid Seibold in their new post for CIO Journal admit that blockchain in the corporate environment has big potential as according to them institutions can begin leveraging the technology in “corporate environments” and “financial marketplaces”. However, they also added that there are some implementation challenges.
In their post Jeff and Sigrid say that due to the high cost of paying for transactions that require anonymous consensus, blockchains need to evolve beyond the need for a native token. Their views are expected to help the original debate on the same issue by the industry’s more critical thought leaders like Tim Swanson and Robert Sams.
The duo inform that like any accounting system, blockchains are a way to instantiate a ledger and believe that unlike other systems, the blockchain ledger is distributed; it lives with all parties who run its software. The article reads:
Transaction verification is done with heavy cryptography which, in the case of Bitcoin, is made possible by crowdsourcing processing power. Ensuring a party actually owns the Bitcoin pledged in a transaction—or any asset being tracked by this type of system—only requires a simple query of the blockchain.
However, the two directors question the divide in the Bitcoin industry when they say that to be used by financial institutions, including capital markets firms and insurers, blockchains must supplant the costly methods introduced by Bitcoin with a mechanism that guarantees security, privacy and speed without paying for anonymous consensus.
According to the Accenture directors the solution for this could be permissioned distributed blockchains, of which Ripple may be the most notable example.
Some Obvious Questions on the use of Blockchain Technology
Their questions are in the line with the Bitcoin proponents who have been arguing that Bitcoin or some cryptocurrency is essential to the design of a blockchain. These Bitcoin proponents believe that as blockchains require a mechanism to incentivize distributed recordkeeping, a process that on the Bitcoin network is facilitated by largely anonymous miners.
The article has come at a time when Accenture has made its interest in the technology public by appealing for the UK government to more strongly regulate digital currency wallet providers. Though the two authors are optimistic about the idea of distributed ledgers, they believe Blockchains will bring disruption and displacement.
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