Bloomberg Editorial Board: Public and Private Blockchains Need Level Playing Field
The editorial board for Bloomberg News has called for a permissive regulatory environment for blockchain development, particularly in the area of public versions of the technology such as bitcoin. In an editorial published yesterday, the board advocated for the use of so-called regulatory sandboxes, or rule-making frameworks that allow companies to test financial products within a limited scope and customer range. Comprised of a team of news and features editors, the board joins a number of countries, including the UK, that have pushed for creating such environments specifically for....
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MasterCard has spoken out against bitcoin's perceived risks and called for regulators to create a "level playing field" for payments systems. The statements were made as part of an ongoing Australian inquiry into digital currencies, headed by the Senate Standing Committee on Economics. In a document, the credit card company argues that all financial services should be held to the same standard, stating that it is imperative all consumers and merchants are able to conduct business and commerce in a way that is safe and simple for all. The statement says: "It is our view that all....
Investor Fred Wilson, co-founder of Union Square Ventures, thinks banks are missing the most important opportunity bitcoin offers by building private blockchains. Speaking on a panel with Nathaniel Popper of The New York Times at the CB Insight “Future of Fintech,” he said the transformative value of virtual currency will be on a public blockchain, as reported by the Observer. Private blockchains copy the distributed approach of public blockchains but hide it inside the servers that their creators have given permission to maintain a copy. Private Blockchains? Think Compuserve. Wilson, a....
Vitalik Buterin is a programmer and writer. He founded Ethereum, a decentralized web 3.0 publishing platform, for which he won the World Technology Award in 2014. In this article, he explores the differences between public and private blockchains and the pros and cons of both. Over the last year, the concept of 'private blockchains' has become very popular in the broader blockchain technology discussion. Essentially, instead of having a fully public and uncontrolled network and state machine secured by cryptoeconomics (eg proof-of-work, proof-of-stake), it is also possible to create a....
Many people argue that private blockchains, run by private firms, are useless, since they make users dependent upon a third party ‒ the firm managing the blockchain. Many believe that private blockchains currently being considered are not blockchains, but rather, distributed ledger technology which has already existed. Others believe private blockchains could provide solutions to many financial enterprise problems that Bitcoin does not, such as abiding by regulations such as the Health Insurance Portability and Accountability Act (HIPAA), anti-money laundering (AML) and know-your-customer....
Blockchain technology is rapidly transforming the world and the web as we know it. Since the technology was first unveiled, there has been a substantial increase in the use of both public and private blockchains across an array of industries. In fact, government organizations, too, are starting to adopt blockchain for better security, traceability, and […]