Charles Hoskinson is a prolific speaker and puts his ideas across with ease. This was even more evident during his keynote at the World Crypto Conference (WCC) in Vegas.
Charles’s keynote was toward the last 30 minutes of the whole conference and yet the audience stayed until his keynote was over.
He talked about how IOHK is working on deconstructing the concepts in the crypto space to make them more meaningful.
“One of the advantages of the approach our company has is that we are fundamentally deconstructing a lot of ideas and concepts of cryptocurrencies and blockchains and protocols,” Charles said “one of the fun things about doing that is that you can separate fact from opinions.”
Charles spoke about how big brand names are now joining the research and conversation around cryptocurrencies and blockchain.
“We will see an explosion of ideas in the next 24 months” Charles said, referring to the growing interest in the space and reputed institutes investing their time and money on research and validation of the crypto space.
What happens if Bitcoin became a global system?
In the model of inclusive accountability, how do you achieve scalability with a system that is inherently too big to participate?
“How big will the bitcoin blockchain be if it was truly a world scale system?” Charles asked “It could become so big that you cannot even download it.”
“Zero knowledge crypto could help achieve this property” Charles said referring to the ground breaking work being done in the space.
We have to make this technology work on a smartphone and on the internet connection in a coffee shop to make the universal adoption reality. Blockchain and Crypto in its current form is not compatible with basic tools available with the public.
Properties of a transaction in traditional world also happen on Blockchain
Charles referred to the 5 properties of a transaction that need to be present whether the transactions happens on a blockchain or in traditional system.
- Asset – there has to be something of value for exchange, like an asset
- Actors – you need sellers, buyers, witnesses, etc.,
- Story, metadata, when-where-who – you need to know the history of transaction, who is buying, who is selling, when was the property transferred, etc.,
- Contractual understanding – Contractual terms must be understood and agreed upon
- Regulatory environment – transactions must take place within the regulatory framework for it to be valid
For a blockchain protocol to be successful, it has to facilitate all of these aspects on any transaction that takes place on the blockchain.
KYC could be simplified without compromising the identity
During the Keynote, Charles talked about how centralizing identity management using blockchain can greatly simplify the KYC process and help everyone comply with the regulations without increasing the complexity or compromising one’s identity.
Imagine a scenario where we can encrypt the identity and verification that meet KYC standards right into the transaction?
It is possible with a blockchain based KYC profile with 2 factor authentication built in. For instance, you could authorize the company holding your identity and they could confirm your identity through encrypted code without ever revealing your identification data. This brings speed and security to the identity management.
You will only need one verified source of identity that can be used in all of your transactions without ever compromising on security or speed.
Governance is the most valuable innovation coming out of blockchain space
Most of the existing regulations are opinionated and were slapped on the people without their consent or agreement. Most of these regulations are pre-internet era and need to be changed to come to terms with how the world works.
“It cannot be the 3 or 4 regulators coming together and dictating this is what we must do,” Charles said “when people come together in a global movement, then people become in charge.”
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