Accenture Advocates Separating Blockchain from Bitcoin Mechanism

Multinational technology service company Accenture has advocated the separation of Bitcoin from its distributed ledger technology, the blockchain.

According to a journal, jointly penned by the company’s managing directors Owen Jelf and Sigrid Seibold, the blockchain’s association with its native digital currency is somewhat effecting its adaptability in corporate environments and public financial marketplaces. The post has neatly criticized blockchain for supporting anonymous consensuses which, as per the Accenture’s directors, heavily rely on “costly proof-of-work algorithm, public transaction data and a validation scheme that adds latency to the transaction process, by design.”

“Though this model works for some markets,” they add, “it is not a good enough fit yet for financial institutions, and it doesn’t meet the stringent needs of corporate CIOs and CTOs.”

Jelf and Sigrid, on the other hand, support the idea of permissible distributed ledgers — a sort of non-distributed, centralized record keeping method — that eradicates anonymous consensus from the overall mechanism. This is, of course, to make blockchains suitable for those private networks that want their transaction validators to be known.

The journal, meanwhile, acknowledges blockchain for being a great technology, something which presents enormous opportunities to banks and other financial institutions. But it also recognizes the ledger as something that needs to be improved heavily in order to make it addressable to the aforementioned sectors.

“For existing asset classes that are moved to a blockchain, how can they digitized and given clean title when being moved to a new digital ledger,” the journal stated.

“Where does the blockchain actually begin and what is the day zero of title ownership? These are only a couple of the questions we’re looking at now to determine whether this new technology could be used to help power our financial markets.”

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