Bitcoin Global News (BGN)
September 04, 2018 -- ADVFN Crypto NewsWire -- Michael Casey
brought up an excellent question in his piece on Monday in which he
examined the World Bank Blockchain. Should we, as Blockchain
professionals and investors, be so quick to write off private
blockchains as being against the founding principles of the
space?
At face value, the answer seems to
be no, almost simply due to the fact that private blockchains still
indicate business trust in and willingness to adopt the technology.
Adding credence to this is the fact that in many cases, starting a
private blockchain goes hand in hand with a huge upfront
investment.
Casey suggests in the same article
that while we are experiencing a market that appears to be full of
failures, we can learn from certain successes, such what was
recently displayed by the World Bank with their successful trial of
issuing bonds via their proprietary Blockchain.
Due to the fact that this example
and any others that involve private blockchains are by nature
centralized, we cannot call them wins for the original ideology
that the Bitcoin maximalists espouse.
On the other hand, settling any
transaction in real time on the Blockchain lends more evidence to
the idea that any organization that sits in between financial
institutions such as clearing houses are swiftly becoming
obsolete.
Going back to the example of the
World Bank Blockchain, we can see a real-time example of why this
is true.
On August 23, they were able to
issue the equivalent of $79 million in bonds through the
Commonwealth Bank of Australia, without the assistance of any
middleman. On top of this, according to Casey and Coindesk, the
entire process showed that similar transactions could eventually be
reduced down to seconds, thanks to the Blockchain.
Imagine the efficiency that could
eventually sweep the financial industry if such practices were to
become standard.
All in all, despite private
blockchains being centralized, consider these benefits before
completely writing them off as being unimportant to the growth of
the overall industry.
By: BGN Editorial Staff
News:
World Bank
Blockchain