Bitcoin developer Jimmy song said to use blockchain technology for private centralized systems, such as corporations, “makes no sense”, it tells Cointelegraph.
The song, which also acts as a venture partner of the investment Fund Blockchain Capital, in the podcast Unchained from June 26, spoke about his experience as a corporate architect of the blockchain in the company of Paxos for two years, noting that he could not get private blockchain to work:
Every time I returned to the same. Apparently, there is some major point of failure, and in this case the meaning of the blockchain becomes zero… I was struggling trying to complete the task, but could not find a way to do that without centralization, in which all becomes meaningless.
Then song explained the difference between the integrated blockchain system, mentioning Blockstream and private blockchains, such as Hyperledger and Corda. The song has formulated two problems that hinder the work of the technology in this case: “the problem of the Oracle” and “the problem of the regulator.”
The song explains how the “problem of the Oracle”:
Once you bind a real asset with bloccano, you lose many ways of protecting it. For example, a gold bar stored in a vault. How to determine the identity of ingot, if someone steals the token?
The latter problem means that the regulator will require “direct access” to the private integrated blockchain.
Song cites the example of the problem of centralization platform Hyperledger from IBM, explaining how her service is, in essence, became the centralized authority that determines which transactions to add to the blockchain:
In fact it is a very powerful centralized authority that determines the order… For me this is the main point of failure.
The song claims that IBM is forced to centrally control the system, to obtain a profit from it:
They have to justify something for which they must pay. If they just run the software, and you do nothing, it makes no sense.
The developer also spoke about the recent bet with Ethereum co-founder Joseph Lubina the conference Consensus, when Lubin put “any amount of bitcoins” that song is wrong in saying that most of the blockchain projects will be obsolete in five years.
See also: Jimmy song: Why is the blockchain not a panacea