Building Business Cases With Distributed Ledger Technology: Things to Know
Report Summary
Building Business Cases With Distributed Ledger Technology: Things to Know
Financial institutions must understand the trade-offs between different consensus algorithms and how they impact business cases.
Boston, August 3, 2016 – The emergence of bitcoin as a pure peer-to-peer payment network proposed a fundamentally different way of conducting financial transactions, but the explorations of this technology have gradually moved away from cryptocurrencies. Market players are now predicting that the database technology underlying the bitcoin protocol, known as blockchain technology or distributed ledger technology, could be the cure for the financial services industry’s inefficiency and disorganization ills. But what can DLT realistically achieve, given the technology’s inherent constraints?
This research clarifies the terminology relevant to DLTs and explores different DLTs’ characteristics, identifying how they could impact business models in the financial services industry. Based on reviews of recent academic papers concerning developments in the DLT space as well as 2016 interviews with leading market strategist and technology vendors, the report also proposes a five-factor model in determining a good business case in capital markets.
This 30-page Impact Note contains six figures and six tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report.
This report mentions BigChainDB, BitShares, Chain, Clearmatics, colored coins, Digital Asset Holdings, ethereum, Factom, litecoin, NXT, ripple, stella, and Tendermint.