The rise of cryptocurrency means financial firms may have to replace much of their internal IT infrastructure.
That was one of the messages delivered at the ScotChain18 conference in Edinburgh this week which explored the effects that the rise of Blockchain will have on commerce.
The not for profit event was hosted at RBS Gogarburn in Edinburgh on Thursday and was organised by data recruiter MBN Solutions and blockchain specialist Spiritus.
Jeremy Drane of crypto systems firm Libra said: “There’s an assumption by some companies that their current infrastructure will accept crypto and blockchain.
“The data is just so different that their systems can’t work with it.
“We have been educating customers in what are the minute differences between data structures that don’t allow your systems to work and that it is better to buy new than repurpose your old software.
“It is hard for people to accept that as new data structures come along their old systems won’t work with it.” ScotChain18 featured a broad range of speakers from across the cyptocurrency industry.
Deloitte’s Risk Advisory Leader for Fintech and RegTech Kent McKenzie explained the regulation challenges that blockchain poses governments around the world while Apolline Blandin of the Cambridge Centre for Alternative Finance told the audience of the framework her organisation was creating to standardise the process structure of cryptocurrency.
CEO of smart contract provider Monax, Casey Kuhlman, echoed the need for standardisation in the industry. He said: “This is an immature software and the value proposition is not clear due to the different tech involved in each cryptocurrency solution.
“Projects like the one happening in Cambridge will give much needed clarity and let us talk about crytocurrency in a more distinguished way.”
CEO of MBN Solutions, Michael Young, said: “One of the key themes for discussion that emerged over the course of ScotChain18 related to the likely impact on a business that Blockchain technology may demand? My view is that with many organisations exploring Blockchain, the realisation is fast dawning on them that they may have to adapt to new business strategies. This will clearly have an impact on the likely ability of traditional IT infrastructure to be capable of supporting the ’new order’. We heard that businesses already advancing into this space have observed that to pave the way for Blockchain technology, it has become necessary to evolve their digital infrastructures for the next generation of cloud and crypto services. Without exception, the success stories seem to have one characteristic in common: they needed the right infrastructure in place to ensure the rapid, seamless, and secure transmission and processing of data on the Blockchain. Whilst this is not an issue for many Startup ventures in the Blockchain space, this may mean a complete rethink for large corporates looking to keep pace with this foundational technology.”