Why Shift From a Public to a Private Blockchain?
February 25 2019 - 1:17PM
InvestorsHub NewsWire
Bitcoin Global News (BGN)
February 25, 2019 -- ADVFN Crypto NewsWire -- Ethereum’s speed
has not improved since the CryptoKitties debacle, at least not
enough to support a reliance on its’ main chain for the long-term.
Though not everyone seems to agree with this idea, it does appear
to have achieved consensus amongst the Ethereum developers
themselves and companies which are delving into hosting
security-token offerings like Templum.
Through a report from CoinDesk
today, it came to light that a company called Symbiont is working
on a new framework for hosting Security Token Offerings that will
allow Templum to move away from the Ethereum network altogether. If
you are questioning how this is possible, it all begins with the
perceived need for the centralization of blockchain networks that
work with security tokens.
Yes, you heard that right. Templum
is planning to shift to an entirely private blockchain with its’
own smart-contract system to run STOs in a way that they think will
be more likely to be accepted by regulators. On the surface, it is
easy to see why an regulatory agency would prefer a centralized
blockchain platform over one that is decentralized.
In short, one is easy to monitor,
while the other is not. For another example of this, just look at
Coinbase’s most recent acquisition of Neutrino, which it publicly
suggested will help it to be more compliant. In Templum’s case,
they are aiming for the same result and have even specified the
goal of all transactions on their future platform being
easily identifiable.
From this, it can easily be
inferred that they aim to identify all participants on their
platform at all times. Therefore, the central question to ask then
becomes: are security tokens the future of cryptocurrencies or
merely just a temporary solution for legacy financial
institutions? Whatever the answer turns out to be over time,
one thing is clear.
The average crypto investor is not
interested in being identified at all times. One of the central
tenets of Bitcoin was to put the ownership of money in the hands of
individual and therefore, take away barriers like extensive
know-your-customer requirements that stand in the way.
By: BGN Editorial Staff
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