“ Distributed ledger technology applications extend to digital identity platforms and personal records ”
within the Bitcoin community , as larger blocks would take longer to propagate through the network .
Security considerations are paramount . While the core technology has proven robust , the World Bank Group reports that “ statistics show there are around 15-50 bugs per 1000 lines of code ”.
Recent incidents at Mt . Gox and Bitfinex demonstrate vulnerabilities in the application layer , even when the underlying technology remains secure .
Interoperability presents another challenge . ESMA emphasises that “ DLT networks will need to be able to interoperate with each other and with legacy systems ”, requiring harmonised technology standards and universal reference data standards . Integration with existing financial infrastructure requires industry-wide coordination and substantial investment , with some estimates suggesting implementation costs could reach billions of dollars .
Regulatory Landscape and Future Outlook Regulatory approaches to DLT vary significantly . The UK ’ s Financial Conduct Authority has implemented a regulatory sandbox for testing DLT applications , while Hong Kong ’ s Securities and Exchange Commission has approved DLT-based crowdfunding platforms .
In the US , the Delaware General Assembly passed amendments in 2017 recognising blockchain as an acceptable form of corporate recordkeeping . A scattered global regulatory approach has not deterred central
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