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What Goldman Sachs CEO Misunderstands About Private Blockchains

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Only one of the following pieces of news is true, but one day, it will all seem equally comical.

Address, 1896:

The owner of Wagoneer & Sons, a leading manufacturer of horse-drawn carriages, announced the adoption of a new machine called the “internal combustion engine” to improve the manufacturing process. “Gas engines are powerful, but dangerous,” said the owner. “We will use it to make better vehicles.

Address, 1918:

The American Candlemakers Association has announced a new initiative to electrify the candle-making process. She believes that using electricity is very dangerous for lighting but that it can be used to make cheaper candles.

Title, 1989:

The United States Postal Service will adopt a new technology called “the Internet” to speed up the sorting and delivery of letters and postcards.

Address, 2022:

The CEO of a major investment bank argues that blockchain, a technology invented to eliminate legacy middlemen such as banks, is best used by these middlemen to incrementally improve their outdated methods.

This final title is a summary of an editorial author By David Solomon, CEO of Goldman Sachs, who argues that private blockchains deployed by regulated brokers are more beneficial than cryptocurrencies. This is the latest iteration of the “blockchain, not Bitcoin” argument we’ve been hearing for years. It usually starts with a list of why things like public blockchains or Decentralized Finance (DeFi) Serious and ends with the conclusion that only incumbents should be allowed to use the technology. But that is not how history works.

Every transformative technology starts out as “ineffective and dangerous.” The oldest cars often broke down, and one of the first major uses of electricity was to execute prisoners. People and companies who initially adopt new technology also tend to be skeptical. Most car companies that appeared 100 years ago failed, and Thomas Edison used to electrocute animals to make his competitors look bad. But good technology that solves important problems wins anyway.

To be fair, there was a time when private blockchains were considered a useful, albeit insignificant, solution — not as a replacement for cryptocurrency but as a workaround that could develop in parallel. I would have told you three years ago, a bank can use a private network to reduce internal inefficiencies today while learning how to interact with the public tomorrow.

But I was wrong. Despite the tremendous efforts, the only thing the private chains have achieved so far are impressive headlines followed by even more impressive failures. I can’t find a single example of a corporate project doing something useful despite hundreds of millions of dollars invested in the lot. The list of epic failures is getting bigger every week.

Related: Learn from FTX and stop investing in speculation

The first problem with any private network is the omission of the point of encryption, which is to eliminate intermediaries like banks and the fees they collect. Take cross-border payments, as multiple correspondent banks have been (supposedly) building private blockchains to to improve their internal transfers. The best correspondent bank isn’t any more efficient – it’s the bank you don’t need thanks to stablecoins.

This does not mean that banking will disappear. Even stablecoins will need someone to hold their reserves, and tokens often need custodians. But the more time big banks waste on private chain fantasies, the less likely they are to build useful crypto products.

In his editorial, Solomon argues that “with the guidance of a regulated financial institution like ours, blockchain innovation can flourish,” followed by “the invention of email has not rendered FedEx or UPS obsolete.” This is a wrong analogy. The best one is the US Postal Service, in terms of mail volume collapsed by 50%. Are you listening to Wall Street?

The second problem with any private network is slow development. In DeFi, new protocols are released frequently by random developers. Most fail (sometimes catastrophically), but thanks to the unauthorized nature of public networks, the redundancy is instantaneous. This is how we get generational breakthroughs like Uniswap, built on a $100,000 bounty—money less than the salary of countless bank executives working on the latest fictional private network.

Related: From the New York Times to WaPo, the media is beating Bankman-Fried

Bankers like to argue, “But wait a minute, what about regulations? We can’t dive headfirst into DeFi even if we want to.” This is correct. But it’s also their problem.

What these executives are really saying is that they expect their regulatory moats to protect them indefinitely. If every DeFi project had to first obtain a banking license, the pace of innovation in crypto would slow dramatically.

But this is not how the disorder works. With smart contracts and outcomes secured by crypto, DeFi will be safer than any bank. Riding on a global public network as transparent as Ethereum, access to it will be fairer than any financial system we have today. Regulators will come eventually.

It’s hard to know exactly what the future of public unlicensed will look like, but one thing we can be sure of is that it won’t look like how Wall Street does today. This is not how history works.

Omid Malakan He is a nine-year veteran of the crypto industry and an adjunct professor at Columbia Business School, where he lectures on blockchain and cryptocurrency. is an author Rebuilding trust: the curse of history and the crypto cure for money, markets, and platforms.

This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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BNT/USD is trading near the $0.50 resistance

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The Bancor price prediction shows that BNT is crossing the 9-day and 21-day moving averages while the coin is taking off to the upside.

Bancor Prediction Statistics Data:

  • Bancor price now – $0.34
  • Bancor’s market capitalization is $55.8 million
  • The circulating supply of Bancor – 162.5 million
  • The total supply of Bancor – 162.5 million
  • Bancor Coinmarketcap Ranking – #287

BNT/USD market

Key levels:

Resistance levels: $300, $310, $320

Support levels: $130, $120, $110

BNTUSD – daily chart

BNT / USD It is currently trading at $0.345 after touching a daily high of $0.490, and is likely to return above the 9-day and 21-day moving averages. However, in case the buyers can push the price above the $0.50 resistance level, then the daily candlestick may close above this level, and the price may rise towards the upper boundary of the channel.

Bancor Price Prediction: Bancor is preparing for an upward movement

According to the daily chart, the Bancor price It is moving near the $0.40 resistance level as the coin is preparing for additional gains. The technical indicator’s RSI (14) is also moving to cross above the 50 level, where the signal line is pointing up to signal a buy signal.

However, if buyers are able to push the price and hold it above the 9-day and 21-day moving averages, Bancor price could rise towards the upper boundary of the channel to reach the potential resistance levels at $0.50, $0.55, and $0.60. While crossing below the lower border of the channel, it could lift the currency to the support levels at $0.25, $0.20, and $0.15, respectively.

Against Bitcoin, Bancor is following a bullish rally, and it could swing higher to cross above the upper boundary of the channel that could identify the resistance at 2400 SAT and above. On the other hand, if the market price crosses the lower boundary of the channel, it may reach the support level of 1800 SAT and below.

BNTBTC – Daily Chart

However, the technical indicator’s RSI (14) is currently moving to cross above the 50 level as the signal line is pointing north to confirm the upward move. Moreover, any further upward movement may create additional gains above the channel.

But, Dash 2 Trading It gives you the ability to improve your trading and scalping profits with effective crypto trading recommendations, automated trading, and analytics features. There is a D2T token pre-sale going on and time is running out. The launch of the pre-sale dashboard is coming soon as the product developer is ahead of schedule. To date, the prequel has raised nearly $12 million.

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DYDX/USD could rise above $1.20

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Since the coin starts the upward movement towards the upside, the dYdX price forecast is likely to move steadily inside the channel.

dYdX prediction stats data:

  • DYDX price now – $1.10
  • DYDX market capitalization – $72.7 million
  • Circulating supply of DYDX – 65.5 million
  • Total supply of DYDX – 1 billion
  • DYDX Coinmarketcap Rank – #198

DYDX/USD Market

Key levels:

Resistance levels: $2.00, $2.20, $2.40

Support levels: $0.50, $0.30, $0.10

DYDXUSD – daily chart

DYDX/USD is likely to cross above the 9-day and 21-day moving averages as the currency begins its upward movement. in the past few days, dYdX price Struggles to cross over to the positive side. According to the daily chart, the RSI (14) technical indicator moved to cross above the 40 level, confirming the bullish movement of the currency.

dYdX Price Prediction: DYDX is ready for an uptrend

the dYdX price It is currently moving north. If the currency continues its upward movement, the bulls may cross above the 9-day and 21-day moving averages, which could reach the resistance levels at $2.00, $2.20, and $2.40. At the time of writing, DYDX/USD is showing a slight bullish movement on the daily chart.

Conversely, if the coin slips below the lower boundary of the channel, it may bring the coin back to the $0.50, $0.30, and $0.10 support levels, respectively. Meanwhile, long-term buyers should not be alarmed by the small impact down the road, as the future of DYDX is assured as evidenced by the technical indicator’s RSI (14).

Against Bitcoin, dYdX price is hovering below its 9-day and 21-day moving averages as the coin is poised for an upward move. The technical indicator’s RSI (14) also confirms the upward movement as the signal line encounters the 40 level. On the contrary, a potential downside move could emerge if the market price crosses below the lower boundary of the channel, which could reach the support level 200 SAT and below.

DYDXBTC – Daily Chart

Meanwhile, any further bullish move above the moving averages could push the coin to the 1200 SAT resistance level and above, and this could take the coin to a new high, and the market could remain in the bullish zone.

But, Dash 2 Trading It gives you the ability to improve your trading and scalping profits with effective crypto trading recommendations, automated trading, and analytics features. There is a D2T token pre-sale going on and time is running out. The launch of the pre-sale dashboard is coming soon as the product developer is ahead of schedule. To date, the prequel has raised nearly $12 million.

Related

Dash 2 Tadawul – High Potential Pre-Selling

Dash 2 Trading
  • Active pre-sale is live now – dash2trade.com
  • Featured in Cointelegraph – $10 Million Raised
  • Know Your Customer verified and reviewed
  • The original code for the crypto signals ecosystem

Dash 2 Trading


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SBF to Enter Plea Deal, Mango Exploiter Arrested, Celsius News: Hodler’s Digest, Dec. 25-31

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