In the context of the Blockchain-Cruise-Conference the participants of the panel Pain and fears in 2018 discussed the “Big Picture” of the crypto economy. It was also a question of what needs to change in order for crypto adaptation to progress successfully.
Miko Matsumura started by emphasizing how important it is that the crypto market has had to make many painful experiences in recent months. Now it is a matter of learning from the mistakes and doing it better in the future. Hartjej Sawhney expressed himself much less diplomatically when he generalized that (most) users behave like “idiots” and underestimate the risks, which is why the focus should be on cybersecurity in particular.
Olga Feldmeier referred to the good news in order to brighten up the mood
The ecosystem is developing splendidly and in particular the adaptation in the financial sector gives great hope for a positive development in the near future. With institutional investors and banks jumping on the crypto bandwagon, however, answers to regulatory questions are becoming increasingly important, warned Jonathan Galea. At the same time, however, he admitted:
“At its core, decentralization cannot be regulated, but only the framework around it.
The inventor of the Domain Name System (DNS), Paul Mockapetris, took up the topic of decentralization to outline a problem inherent in decentralization:
“When I invented DNS in the ’90s, the network was very decentralized. However, as scaling increased and everything became larger, centralization began. These centrifugal forces were valid at that time with the Internet like today with Blockchain. To oppose this is a difficult task.”
Private Keys, Quantum Computers and the Role of Crypto-Education
Of particular concern to all panel participants was that users must learn to store their private keys themselves and not leave them to centralized exchanges or hot wallets. Miko Matsumura shook his head in this context because he could not understand why users could not learn from the countless hacks.
“Several hundred million US dollars are regularly burned by stock market hacks and nobody is interested.
Litecoin founder Charlie Lee also agreed with Miko and stressed the need to educate people about how the crypto economy works:
“The problem is that, for the first time, people are responsible for their own money and no longer have to entrust it to a third party, such as a bank. This leads to the convenient use of hot wallets or central exchanges. There is always a trade off between usability and security; but it is getting better and easier to keep one’s coins safe with e.g. hardware wallets.”
Paul Mockapetri sees quantum computers as a further risk factor. BTCC co-founder Bobby Lee replied that it was wrong to portray this as a purely block-chain-specific risk. Quantum computers endanger the entire Internet infrastructure and blockchains can help to reduce the dangers through their further development. Accordingly, block-chain technology can rather be seen as an opportunity to enable a secure network infrastructure despite quantum computers.
Miko Matsumura concluded the discussion with a few words:
“It’s not just about quantum computers, regulation and institutional investors. We have to ask ourselves as individuals and as an industry what we can do to further develop the blockchain adaptation”.