Fintech conference, Moneyconf had the likes of top executives from leading companies such as Ledger and Venture Capitalist firms like Mosaic Ventures. The discussion started off with ‘why decentralized systems are vital?’
The moderator, Joon Ian Wong, asked a question which seemed like no one preferred decentralized systems. The question was whether people would choose to pay for Facebook and to have none of their data harvested or a free Facebook with their data being used? The majority opted for a free Facebook.
However, decentralization was discussed further than the implementation of it in social media like Facebook.
Jalak Johanputra, a Founding partner at VC capital firm FuturePerfect Ventures, pointed towards the frauds being implemented by centralized systems such as elections being rigged and identities being stolen.
“I have a fund invested in several companies that are building decentralized identity platforms and once that becomes the norm we’ll wonder why we gave all our data away for free and allowed ourselves to be exposed in such ways,” Johanputra said.
The other leaders stated a variety of other problems with centralized systems too. Toby Coppel of Mosaic Ventures highlighted the rules being changed whenever central leadership of a company wanted was a problem that decentralized systems would not face thus keeping investors happy.
Nick Cary of Blockchain.info spoke about the bad business practices, trade manipulation, and corruption which existed in the centralized system.
However, the question of the day in Moneyconf 2018 was ‘How will decentralized systems make money?’ This question got every panel member dumbstruck, as they all had no clue what to answer.
Every panel member was scratching their heads wondering what answer to give to this question.
Éric Larchevêque, CEO of Ledger finally answered the question boldly saying,
“The biggest investment model of decentralization right now is speculation. I’m not saying it’s a bad thing, but it’s very early. A lot of the money is done by mining and an ICO is the objective… for that to work, you need infrastructure and then you have a few business models which are really working.I think it may be a while before we see the real business model of the use cases for the platforms that are being built now.”
Nick Cary of Blockchain quickly agreed to this but replied,
“Just because you do an ICO tomorrow and raise a tonne of money does not mean you will inevitably have some sort of incredible business. In fact, it may misalign your incentives to grind through the challenges in the early days.”
In conclusion, the overall picture of decentralized systems making money has still not been decided and is a speculation similar to what is riding the decentralized businesses.
Nick Cary, however, made it very clear that decentralized systems will override centralized systems.
“If I were to try to kill Facebook, what I would do is launch a social network with tokens that would allow all people that participate to earn income from the ad sales. There’s some clever entrepreneur out there that’s going to figure this out,” Cary pointed out.
Image Source: “Flickr”
The post Crypto Wallet CEOs on Why Decentralization is Vital and How it Will Make Money appeared first on Toshi Times.
Source: Toshi Times
Original Post: Crypto Wallet CEOs on Why Decentralization is Vital and How it Will Make Money
