Brendan Blumer, the CEO of Block.one, the company that created the EOS.IO software, spoke yesterday at the fourth DC Blockchain Summit 2019, held in Washington, about blockchain technology which “will lead to a social revolution” and “will turn governments into development platforms“.
Representatives of the US Blockchain Caucus Congress and other key figures in the US government included the most influential figures in blockchain technology and finance such as:
- Brad Garlinghouse, Ripple’s CEO,
- Anoop Nannra, head of blockchain at Cisco,
- Tom Jessop of Fidelity Investments and Matthew Roszak of Bloq.
The purpose of the meeting was to discuss the issues that impact the growing blockchain scenario with technology innovators around the world and with policymakers and regulators. Blumer was asked about the influence this technology will have on trade, regulation, security and business.
Under the vision and leadership of Blumer and Daniel Larimer, Block.one helped EOS become one of the most significant ICOs – currently the 4th blockchain for the value of capitalisation – and led to the creation of a very vivid developer community that is at the heart of this technology.
The blockchain allows data to be transferred and stored securely and transparently so that when changes occur everyone can see them, something that was previously hidden.
“I like to see that the internet is taking us to a new type of infrastructure for digital data storage,” Blumer said, answering basic questions about the technology in question.
“Cryptocurrency is just a unit of account. They are just like Excel pages. You can use them to keep track of anything which means that they can be anything from a utility token that can be used to represent our presence here at this conference, cryptocurrencies can be a security which means that you can use them to secure assets, they can be commodity or anything imaginable“.
Blockchain and the revolution for governments
Blumer spoke mainly about the implications of the blockchain for governments and how it can improve its operations.
“Blockchain are going to turn gov into dev platforms. If you take a look at how governments are structured today, most of the enforcement and execution and everything that it does is nearly outsourced. We outsource the enforcement of the entire financial system to private organisations like banks etc. that enforce policies but once you take something like the USD and you put it on a blockchain you allow the blockchain or the USD to be programmable itself and it turns currency into a development platform that people can integrate into it. Right now when we build products and services we do so around the constraints of the USD. We can only make transfers every so often, they’re expensive, they’re slow and we build products around these constraints but in the future once jurisdiction and tax laws are coded into the dollar itself businesses can build their tax on top of governments like fiat currencies and this is going to drastically change the enterprise, how enterprise can interfaces directly with the government opposed to third party enforcement arms or traditional banking and legal systems. It allows governments to extend jurisdiction and automate regulation at a level that never happened before which may be scary but the reality is that by automating regulation you start digitalising how things work and you remove a lot of ambiguity of how businesses should work. When there are hard rules coded into currency itself it allows for people to be compliant, for people to build things right”.
At the military level, Blumer thinks that the security that comes with the blockchain will solve a lot of problems with national security.
“Suddenly, overnight in the last 10 years, we woke up and found out that one of the biggest security threats for the country was Facebook“
As data is becoming the new oil, one realises that the world’s largest companies cannot protect them.
The same security issues apply to the DNS, which is not secure. Identity is the most valuable thing we have and the data concerning it cannot be managed by a private company because the risk of it being stolen and used for illicit purposes or otherwise is too great.
“Blockchain closes a lot of security loopholes that the government needs to worry about today“.
What will the world look like when the tokenisation happens?
The CEO of Block.one talking about tokenisation and the infrastructure necessary for it to take place, commented:
“Bitcoin has big scaling limitation because it can process around 3 TPS but as we move forward projects like EOS that can scale to thousands TPS, nominal costs, one second confirmation times and Inter Blockchain Communication where you can have millions of blockchains working seamlessly in the backend, that can scale it and that’s what gonna take to build something to put every like, every piece of content, social media, Uber, AirBnb all on the blockchain and we architected the infrastructure that can scale and that’s what is going to happen this year“
In recent times Facebook has suffered many criticisms regarding privacy and data management. Mark Zuckerberg said yesterday that he wants to rebrand the social network with a focus on privacy:
“I understand that many people don’t think Facebook can or would even want to build this kind of privacy-focused platform — because frankly we don’t currently have a strong reputation for building privacy protective services, and we’ve historically focused on tools for more open sharing“
He wrote it in a post on his Facebook page titled “A Privacy-Focused Vision for Social Networking”.
Zuckerberg wrote in his post that the new Facebook would be designed around key objectives such as private interactions, encryption, permanence, security, interoperability, secure data storage and everything through the family of Facebook apps, including Instagram, Messenger and WhatsApp.
Brendan Blumer said:
“The next version of Facebook will not look like a private organisation because it leverages an open source code because blockchain allows open source communities to disrupt companies as we know them today so next version of FB will be a distributed community where blockchain will automatically recognise the value that is created through content, content consumptions, tokens and the open source will create competitive organisations“.
Blumer also spoke about the revolutionary impact that the blockchain will have on the banking sector. All the money is put into the bank and the bank invests on behalf of customers. When there will be tokenisation, each product will have a token. At this time it is difficult for people to put money elsewhere than in a bank, but in the future people will have the opportunity to put value in things they understand so what will change is that the money will flow from the banks and affect the value creation.
“It creates a domino effect that changes the whole world. What this technology is doing is leading to social revolution. Communities can create more competitive organisations than the traditional corporate structures. We’re at a very early stage of that revolution.
Blockchains have some scaling limitation but soon it won’t matter on which blockchain the data is stored as long as they can communicate through IBC that is currently under Block.one development. The experience will be seamless“.