Standardization of Blockchain Distributed Ledger Technology: Global Trends, Opportunities and Challenges for Remote Investment Transactions

Abstract

Based on a cross-disciplinary approach, this chapter examines the evolving processes of blockchain distributed ledger technology (DLT) standardization as a critical step on the path to the integration of the key elements in digital remote investment transactions (RIT) ecosystem, which determines the effectiveness of RIT participants’ interaction in the digital economy. The authors describe the factors that define the current dynamics of the blockchain distributed ledger market (DLM) and identify prospects for its development. The impact of standardization on the building of public trust in blockchain DLT, which serves as a basis for growing market demand and widespread use in financial and investment activities, including the implementation of RIT, has been substantiated. The chapter studies the first experience in blockchain DLT standardization on different levels of the global economy—from the nation states (using examples of Germany, China, Russia and Kazakhstan) to the integration unions (standardization within the EU and EAEU) and international standards organizations. By way of discussion, the authors emphasize critical and open-ended questions related to the RIT-class application solutions and the underpinning digital technologies’ research and development, which could define the future of unification, standardization, and integration of the RIT system key components processes.