The idea that bitcoin’s underlying distributed ledger technology can somehow be divorced from bitcoin’s digital currency has been the subject of debate for some time, and was again the focus of a new article written by directors at technology consulting firm Accenture.
In a new post for CIO Journal, Accenture managing directors Owen Jeff and Sigrid Seibold offered their thoughts on how institutions can begin leveraging the technology in “corporate environments” and “financial marketplaces”.
Jeff and Sigrid asserted that, due to the high cost of paying for transactions that require anonymous consensus, blockchains need to evolve beyond the need for a native token. The critique is notable in its similarity to arguments popularized by the industry’s more critical thought leaders like Tim Swanson and Robert Sams that center on the cost of distributed mining.
Jeff and Sigrid wrote:
“To be used by financial institutions, including capital markets firms and insurers, blockchains must supplant the costly methods introduced by bitcoin with a mechanism that guarantees security, privacy and speed without paying for anonymous consensus.”
The Accenture representatives suggested one solution could be permissioned distributed blockchains, of which Ripple may be the most