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The concept of open badges could also pose a challenge to existing educational institutions, given that they might no longer be the chief conduits for awarding qualifications. Will they fight against the concept of badges or make fundamental changes to become part of the lifelong learning ecosystem, recognising badges in the entry process and awarding badges for more than just the core skills set out by a course, e.g. awarding value badges and recognising badges awarded by peers?

What if employers didn't care whether applicants held a college diploma but instead asked what educational "badges" they had collected? Like Boy Scout merit badges for professionals, these marks of achievement would show competence in specific skills, and they could be granted by any number of institutions.

"Employers might prefer a world of badges to the current system. After all, traditional college diplomas look elegant when hung on the wall, but they contain very little detail about what the recipient learned. "

"No doubt, 2011 was a year of shrinking government funding for education, rising student debt, rising unemployment among college grads (gasp! people questioned the value of a college diploma!) and growing private sector investment in education companies. 2012 will likely bring more of the same."