According to industry experts, blockchain requires its own music industry ‘MP3’ moment as fragmented regulation and technology hinder the development of a digital securities industry that could aid realize its full potential.
Distributed Ledger Technology (DLT) or blockchain support cryptoassets such as bitcoin and enables several parties to access a single version of data simultaneously.
Gerd Hartung, head of new digital markets at Deutsche Boerse said that extending its application to trading, issuing and settling securities such as bonds and stocks needs a common digital format for the securities themselves. He added that the real topic is how they get to the MP3 digital format you observe in the music industry. The next level they are getting to is digitization of the financial tool itself.
The digital MP3 file format, with its low audio quality didn’t look like an innovative technology until the arrival of MP3 players and streaming systems dramatically modified the music industry, removing a slew of middlemen and almost all the obstacles to entry encountered by an artist.
According to industry officials, a same pivot in financial markets would enable a tool to be utilized in hours instead of days or weeks, better targeting particular markets and enjoying benefits of windows of calm to reach more investors quick and free of data errors.