Why Is A ‘Cooling’ Crypto Market Positive For Clearing Out The Clutter And Confusion For Real Change To Happen
Why Is A ‘Cooling’ Cryptocurrency Market Positive To Bring The Change Needed?
2018 was not a good year for virtual currencies if we pay attention to the price of the most important virtual currencies. This does not mean, however, that blockchain technology and cryptocurrencies are not useful. Indeed, they are prepared to change the world in many different ways.
In a recent article written by Sheila Warren, the head of blockchain and distributed ledger technology at the World Economic Forum, wrote an article related to the cryptocurrency market and how this ‘cooling’ market will empower the blockchain industry as a whole.
After a crazy year in 2017 in which everyone was a cryptocurrency expert and entrepreneurs in the crypto space, 2018 eliminated several companies and investors that were in the market for fast gains. Now, companies are focused on providing real products, improving the technology and making important advancements in new platforms such as the Lightning Network (LN) and other off-chain scaling solutions for blockchain systems.
Warren explains that blockchain technology has the potential to give citizens an enhanced stake in and ability to influence current systems. At the same time, the technology has the potential to enhance governance as well.
There is a surge of consortium models in which it is possible to gather more actors and provide solutions that are positive for the whole ecosystem. Furthermore, she explains that the market is also seeing acknowledgement that systems cannot be transformed effectively unless there are several stakeholders considered.
She comments on this issue:
“In addition to a multi-stakeholder approach, which is slowly gaining traction, a robust and grounded policy framework is needed to ensure that the ‘neutral’ qualities of this technology don’t simply replicate the problems of existing systems, as is already happening with cryptocurrency.”
Some of these problems that she marks are market manipulation, over-the-counter (OTC) trading desks that replicate current financial problems and opaque intermediaries.
According to Warren, at the Centre for the Fourth Industrial Revolution, they are trying to push for policies that leverage some of the main features present in Blockchain technology. One of the examples she gives is a pilot in Colombia that aims at reducing corruption in the country using a blockchain system.
They are engaging with different stakeholders that include government officials, the civil society, media companies and many other businesses and academics. The pilot focuses exactly on schools, parents’ associations, teachers’ associations and students.
Their goal is to create a policy creating multi-party access to information using blockchain technology.
However, how to anonymize identity and protect people that want to report issues, or how to get access to information are issues that the pilot is addressing and trying to improve.
“All of these questions will be addressed in both the policies and in the technical build,” she explains. “While our pilot will necessarily be context-specific, we keep an eye on scaling potential so that the policies we craft can be used to fight corruption in other geographies and under different circumstances.”
Now that we are in the middle of a bear market (or at the end?) it is possible for companies and blockchain projects to focus on development and building better products and services on top of blockchain technology.