Bitcoin — and by extension its blockchain — has captivated the financial industry. On paper, a private version of the virtual currency’s distributed ledger technology (DLT) could be a common-sense replacement for an array of traditional networks used to exchange value. The blockchain’s speed and transparency make the technology behind the world’s most popular virtual currency an enticing proposition for financial services companies. But known and unknown security risks pose impediments to mass-scale adoption of private blockchains.
To gain a better understanding of the issues affecting the security of distributed ledger implementations in financial services, Javelin interviewed executives at financial technology providers, industry associations, distributed ledger vendors, and security assessment firms.