News by sections
ESG

News by region
Issue archives
Archive section
Multimedia
Videos
Search site
Features
Interviews
Country profiles
Generic business image for news article Image: Shutterstock

19 October 2017
Toronto
Reporter Stephanie Palmer

Share this article





Security and standards key in blockchain solutions

Distributed ledger technology (DLT) solutions should embed security measures at their very core, especially in the financial services space, according to Sibos panellists.

Blythe Masters, CEO of Digital Asset, stressed that the company has not had to change its approach or direction to address security concerns, as “we have been developing systems to specification for market infrastructure providers who, themselves, are highly regulated”.

When working with such systemically consequential platforms, security aspects are the starting point of the design of a solution, which should ultimately meet, or exceed, the existing regulatory requirements.

Thomas Zschach, chief information officer at market solutions provider CLS, added that his firm worries about, invests in and innovates around security every day. The shift towards a distributed environment has, however, made confidentiality aspects more complicated.

DLT may have led to an uptick in systems’ resiliency, however it could pose a risk to data integrity, depending on how it is implemented. If things aren’t monitored properly, for example, this could “create vulnerabilities that you didn’t expect”.

Another panelist, Alicia Pertusa of BBVA, noted that, while all of the session’s speakers came from very different backgrounds, they were all either from financial institutions or companies that serve financial institutions or infrastructures. The security requirements in these areas in particular are extremely high, and providers have to make sure they are implementing the same checks as they would with traditional solutions.

A lot of this will come down to standards as “the key to making sure all this security is achieved”, Pertusa said. Technology providers will have to be very comfortable providing solutions to these institutions and infrastructures, as “no mistakes” will be allowed.

Later in the session, Pertusa added that, no matter how cryptographically and mathematically secure a DLT solution is, it will still require a clear business use case, and backing from the regulators, in order to achieve the desired network effect, and subsequent market integration.

She said: “Integration is the key, and for that we need standards.”

Advertisement
Get in touch
News
More sections
Black Knight Media