Balaji S. Srinivasan, CTO of Coinbase said that during EthSanFransico conference regarding virtual currencies and blockchain technology. He stated that the banking movement of private and permission blockchain is overrated.
He says that he regards the ones working in the space and entrepreneurs; however, he mentioned that the banking movement linked to ‘blockchain not Bitcoin’ is seemingly overrated.
He says that blockchain without a native digital asset is something that might make the users lose many advantages behind a blockchain network.
He also mentioned, “I think private blockchain might have a V.2 where individuals acknowledge: Hello I’ll do like a private ICO where it will set-up like a joint venture where you have ten organizations in a consortium; however, they have really a percentage of the token. At that point it may really work once more; however, I think that the entire idea of Blockchain without Bitcoin as a dead end.”
Organizations began to see that it wasn’t important to consider a cryptocurrency for operating a blockchain network. What’s more, during 2014 and 2015, the principal changes began to take place. Currently, there are few banks and organizations that are working with their blockchain frameworks without depending on a particular token.
For instance, a previous executive at JP Morgan, Blythe Masters, contended that the most significant aspect of Bitcoin is Blockchain as opposed to cryptocurrency. Also, he trusted that Blockchain must be utilized as a technology in a wide range of enterprises to enhance products and processes.
This thought of having a Blockchain network without a token developed and extended somewhere in the range of 2016 and 2017. This development was accompanied by the flow of Ethereum and its smart contracts. Furthermore, different organizations began to build up their own systems.
Srinivasan says that Blockchain requires a token of sorts. A portion of these things can be associated with monetary incentives inside the system.
One of these blockchain systems prepared by a financial institution is Quorum. Made by JP Morgan, it enables the parties to easily share distinctive data and transactions. As indicated by Srinivasan, private blockchains can be utilized inside a surrounding of trusted parties.
For some used cases, it’s possible to utilize a private blockchain and keep a record of some problems. The public blockchain could be utilized for different viewpoints for other aspects that are more essential for these foundations.
Balaji says that this off-chain is underrated. Since the crypto space keeps on developing and improving, there will be numerous blockchain solutions and networks that will be executed without relying on a particular token.