7 March 2017
Ethereum Alliance: A Coalition of the Willing
Kirill Timofeev, senior developer in DataArt's dedicated blockchain team, speaks with Finextra about the pitfalls and potential of blockchain for the participants in the Enterprise Ethereum Alliance.
“With more and more financial institutions evaluating and now prototyping uses of DLT (most utilising blockchain as their distributed ledger) we will see value beginning to be brought to the entire industry. Projects such as utilising blockchain range from payments and securities financing to trading and insurance, are being explored by major players, in collaboration with each other.
Across both private and public blockchains there are barriers to wider adoption. DLT is significantly slower than traditional solutions. The cryptographic algorithms, on which blockchains rely, are calculations extensive… Equally adoption is held back in part by the requirement of a blockchain that all parties involved have access to all data in the chain. The issue arises that even if data is encrypted, it may be vulnerable to being accessed by undesirable participants. To solve this would require significantly enhanced security algorithms and approaches. The development of said solution is holding back adoption
The potential of blockchain cannot be considered in isolation. Right alongside the technology is smart contracts. Though conceptually there are great applications in development utilising these two technologies, they are in the early stages and have never been used for larger applications. …The technology is there, it just needs to be standardised and proven to work in the real world.”