Blockchain has been bubbling under the surface of many CIOs' strategies for several years now, but like any emerging technology, the reality of its benefits is yet to match the hype.
It nevertheless has enormous potential.
CIO UK investigations the foundations of understanding the technology.
Read next: How to find and implement emerging technology as a new CIO
March 28, 2017
4. What CIOs really need to know about blockchain: Regulation
wrote in that regulators "appear cautiously optimistic about its potential, especially because of the potential that distributed ledgers could actually help to improve regulatory compliance tracking and reporting. CIO UK "
That doesn’t mean they're ready for blockchain to be ubiquitous. Standardisation and interoperability could be particularly problematic due to the necessity of collaboration across all parties involved.
The current regulatory challenges include assigning responsibility for regulation of cross-border technology that is decentralised and distributed to different parties, and the legal implications of automated or "smart" contracts. There is also the potential for algorithms to produce anti-competitive results or ledgers to make cartel activity possible.
"Although there are still technology and regulatory hurdles to leap, the possibilities are endless,"
Toyota Financial Services CIO Alberta Ma . "When you have the ability to take friction out of a process and you have the capability to bring full transparency and complete immutability into a process, you open the door to many opportunities.” told CIO US