These include the need for standardization, the development of protocols that will permit interoperability between other ledgers and networks, and the reduction of computational intensity and costs. Moreover, distributed ledgers will have to compete with other options and priorities of financial firms and clearinghouses in a highly regulated financial ecosystem.
Thus, a major threshold question for the adoption of distributed ledger technology within and between groups of firms engaging in particular types of transactions is whether the advantages outweigh the costs of replacing legacy systems.