A new report from the World Trade Organization states that blockchain technology can change the face of the world’s financial system as we know of it. Although Ripple received a particular interest in the report, Bitcoin and Ethereum were also mentioned in a fairly positive manner.
The new report called The future of world trade: How digital technologies are transforming global commerce gives a uniques take on the blockchain technology. It states that the technology has “the potential to profoundly transform the way we trade, who trades and what is traded.”
While singling out Ripple in particular, the report mentions that the company could radically change how financial institutions move money.
“Ripple has ambitions to circumvent the correspondent banking model through its distributed ledger platform. It gives banks the ability to convert funds directly into different currencies in a matter of seconds and at little to no cost, without relying on correspondent banks.”
“The company has licenses with more than 100 banks and financial institutions, but it seems that only a limited number of large operations have taken place to date. Banks are still testing the system.”
Covering IOTA, a leading distributed ledger technology that is independent of the blockchain, the report notes:
“Blockchain is the most well-known distributed ledger technology (DLT), but an increasing number of other models are being developed that, like Blockchain, are distributed and use various cryptographic techniques, but that are moving away from the concept of ‘blocks’ – or even from both the concepts of ‘blocks’ and ‘chains’. One example of this is IOTA, a cryptocurrency designed for machine-to-machine communication, in which each transaction is linked to two previous transactions as part of the validation process to form a ‘tangle’ rather than a chain. Today, the term ‘blockchain’ is commonly used to refer more generally to distributed ledger technology and to the phenomenon surrounding it.”
Bitcoin and Ethereum
While the report gave significant importance to Ripple, it did not leave out the top two cryptocurrencies in terms of the market value. While recognizing both Bitcoin and Ethereum as emerging tech that is highly resilient to cyber attacks, the report points out towards the scalability issues the dup faces.
“Firstly, scalability of the main public blockchains remains limited due to the predetermined size of blocks and to the level of energy required to power the networks. The Bitcoin platform, for example, handles about seven transactions per second on average and the public blockchain Ethereum twice as many, while Visa can process 2,000 transactions per second, with peaks of 56,000 transactions per second.”
Although both the tokens are working out ways to tackle the aforementioned issue, to come at par with Visa might take a tad bit more time for them.