Talent gap hinders the development of blockchain in capital markets

Bitcoin House News , January 15 , CoinDesk reported that a new research report from independent research and consulting firm Aite Group shows that the capital market is no longer asking whether to explore blockchain, but how to explore it.

However, while the assessment of the technology industry is optimistic, the report also points out six major challenges facing blockchain, including the most pressing, entrenched traditional systems and lack of industry experience.

Author Gabriel Wang found that the industry lacks a large number of talents who understand blockchain and capital markets.

“ The market is desperately looking for talents who can bridge these two markets and make blockchain technology a reality under the operation of the capital market.

The announcement comes as capital markets are getting involved, with Nasdaq and the New York Stock Exchange (NYSE) delving into the technology, either through proof-of-concepts or strategic investments.

Furthermore, Wang stressed that blockchain technology poses a potential threat to the IT infrastructure of these companies, and that the huge amount of capital entering these platforms further highlights the potential threat.

Other challenges mentioned in the report are the high energy consumption of blockchain infrastructure systems, unclear regulation of blockchain technology, and the scalability and latency issues of blockchain technology.

Wang pointed out that there are still many questions about whether the blockchain infrastructure can handle the tens of thousands of transactions in daily life, a question that reminds us of Bitcoin, where the community is still debating the issue of scalability.

Nonetheless, Wang noted that even if there is no impact on existing IT systems, companies can save money by replacing paper-based processes with automated processes using blockchain .

However, he also pointed out that the specific cost savings from using this technology is still unknown because no such examples have yet appeared.

“ There’s also a huge question of how much capital markets will need to invest to actually build a blockchain platform that can handle trillions of dollars. ”

Considering the development trends in four important markets, Wang concluded that investment is likely to continue.

After the financial crisis, compliance costs continued to rise, and investment pressure in the IT industry increased. Eliminating legacy systems is one of the reasons why investment institutions are interested in technology.

Finally, Aite Group suggests that blockchain spending could reach as high as $ 130 million in 2016 , and spending on blockchain technology could reach as high as $ 400 million by 2019 .