It is necessary to start developing relevant use cases and pilot projects, so that we could understand how DLT will make an impact our lives.
It is necessary to start developing relevant use cases, proofs of concepts and pilot projects, so that we could understand how distributed ledger technology (DLT) will make an impact our lives.
This statement was made by Craig D. Fisher, a program manager in the Office of Financial Innovation and Transformation (FIT) within the Bureau of the Fiscal Service, who wrote an article on the subject. He emphasizes that the trendy technology could possibly eliminate the “middle man”, and thus reduce costs and time for consumers and payments organizations.
However, the expert`s article makes a point that blockchain technology is much more versatile than expected. He explains why:
”In addition to its ability to improve efficiency, blockchain — or, more broadly, distributed ledger technology (DLT) — offers additional benefits that our community should consider, such as security, network resiliency, transparency and automation.“
According to the official, we are currently advancing our efforts to understand how blockchain technology may apply to various use cases. Some possible uses that need further examination are listed below:
- reduce fraud and documentation errors that contribute to improper payments;
- provide for a more robust and real-time audit trail;
- combat cyber crime;
- better manage and track both physical and digital assets, such as equipment software licenses;
- address the challenges faced related to intragovernmental difference; and
- safeguard digital identities to better serve the public.
Summing it up, the financial expert notes that DLT holds a huge promise for improving efficiency and transparency. Yet, it is not clear whether it wil deliver to these expectations. In the meantime, the way forward lies in testing the technology and the way it could impact various industries.