Currently, more institutions than ever are interested in blockchain technology, with financial institutions leading the way. However, financial institutions remain fearful of the legal ambiguity and challenges of integrating the technology into their existing infrastructure.
Although digital assets are now used in many places, there are still enormous hurdles that must first be cleared out of the way before adoption by financial institutions is possible across the board.
One of these hurdles is, among others, the proof of identity, because this explicit form of disclosure of personal information is in clear contrast to the anonymity and decentralization that are part of the basic idea behind blockchain projects such as Ethereum (ETH). Furthermore, governance is a hurdle, as the many hardforks brought about by Ethereum upgrades keep jumbling it up. Compliance is also complicated, as technical restrictions on transactions often make it difficult to strictly follow the rules.
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