The US credit rating agency Moody's Investor Service warned about the dangers of private and public blockchains in a new study.
A report examining the potential impact of blockchain technology on structured financing highlights the main differences between current market trends.
In particular, corporations need to be aware of the pros and cons associated with the use of private blockchains, which can operate without a decentralized consensus or control mechanism and thus become open to manipulation.
“There may be new risks with the use of blockchain technology in securitization, as well as the enhancement of some of the existing ones,” says a brief review of the research document.
"Risks include contractor concentration, IT and operational risks, inadequate management of the blockchain, as well as legal and regulatory issues."
It is reported that several large global organizations have sought to use the blockchain in one way or another to connect certain sectors of the market.
These efforts led to the emergence of blockchain forms that are far from the decentralized bitcoin-feeding (BTC) structure, with some, for example, with the technology of the edited Accenture blockchain, even allowing users to change the flow of information they contain.
For Moody's, such functions are an inherent risk.
“Private / centralized blockchains are more at risk of fraud because the development and administration of the system remains focused on one or several sides,” the report summarizes.
Earlier this month, the World Economic Forum, however, reported that interest in the blockchain was high among central banks, with 40 of them considering using phenomena such as digital currencies.