Early adopters of blockchain have predominantly been building their models on private or consortium blockchains. Seems to be a far easier transition from a centralised system I expect, both technically and culturally and in terms of scaling.
At one point I was wondering about the future of public blockchains beyond crypto then I read this great article about the Huobi Group and their venture into developing a public blockchain using open source code for the decentralisation of financial services.
So what does decentralising of financial services mean?
The Financial Stability Board (FSB) provides a great explanation.
There are a number of different types of decentralisation in financial services. These vary in the degree to which they affect different segments of financial services, but generally take three broad forms:
Decentralisation of decision-making. This involves a move away from a single trusted financial intermediary or infrastructure towards systems in which a broad set of users is able to make decisions about whether and how to undertake financial transactions.
Decentralisation of risk-taking. This involves the shift away from the retention of risk (e.g. credit and liquidity risk) on the balance sheets of individual traditional financial intermediaries towards more direct matching of individual users and providers of financial services.
Decentralisation of record-keeping. This involves a move away from centrally held data and records, towards systems in which the ability to store and access data is extended across broader consortia of users. Verification of such data and records may also be more distributed, for example via consensus mechanisms.
Whilst it is very early days, the vision and strategy is clear. Of particular interest is their leveraged model and their aim to be ‘regulator friendly’ where regulators can be active actors in the ecosystem.
I am keen to follow this project to see how they actually address scaling and hash rate with the PoW consensus protocol… but maybe that is a technical problem for others to solve as we work in the area of strategy!
The public blockchain lives on!