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With blockchain use cases growing and evidence of live implementations, TABB Group believed it was time to ask: Are capital markets firms prepared for a blockchain world, where data, the lifeblood of capital markets, is literally locked up in a new data paradigm?
According to Monica Summerville, TABB’s head of fintech and European equities, who co-authored “Data Analytics in a Blockchain World” with contributing analyst Simona DeFeo, there are no fully implemented and proven enterprise blockchain data analytics and visualization (DAV) capabilities in the market place that are interoperable with multiple enterprise blockchain protocols, adding that there are significant challenges to analysing data stored with enterprise blockchains due to a lack of standard query language and high latency for data access. “Instead, we found that financial entities presently engaged in blockchain proof-of-concepts often conduct analytics ‘off-chain’ after extracting the data from its enterprise blockchain. This is neither ideal nor sustainable. Required will be an on-chain approach to extract full value and competitive advantage of enterprise blockchain.”
Moving forward, Summerville states that as the enterprise blockchain space is evolving rapidly with ecosystems being created and expanded at a frantic pace within capital markets, it’s not too early to be asking questions about how the data generated and stored within these new networks will be analysed and how these analytic workflows will be integrated with the extensive legacy analytics architectures. “Our research found that today there are no fully implemented and proven enterprise blockchain-based data analytics and visualization (DAV) capabilities in the market place that are interoperable with multiple enterprise blockchain protocols, which enable real-time and batch DAV and provide legacy data integration and access control. “However, this, like so much else in the blockchain ecosystem, may rapidly change.”
As the DAV technology evolves, an abundance of opportunities will unfold to transfer and share data analytics across various systems and ultimately monetize derived data, possibly utilizing tokenization approaches offered through new blockchain platforms. “Out of the five recommendations we make in this report,” says Summerville, “perhaps the most important is to remain open to the possibilities, even if it threatens to disintermediate your business.”
The 19-page report with six exhibits is available for immediate download by TABB fintech clients as well as pre-qualified media at https://research.tabbgroup.com/search/grid. For more information or to purchase the report, write to info@tabbgroup.com.
