The future of blockchain opens a whole new world of opportunities

June 15, 2018 10:33 amComments Off on The future of blockchain opens a whole new world of opportunitiesViews: 93

Alfred TaudesThe algorithms at the basics of the blockchain technology and Artificial Intelligence need to be studied at school so they can be better understood. This conclusion made Professor Alfred Taudes, Head of the Institute for Cryptoeconomics at Wirtschaftsuniversität Wien. His qualifications in Business Administration, Information Systems, Applied Informatics and Operations Research allows him to freely share his views, which may not always be close to what is commonplace.

According to the Professor, putting a sign of equality between block technology and the Bitcoin is stupid, comparing it with the dawn of the Internet in the late 1990s.

“When the traditional Internet appeared, everyone was making emails because it was his first application”, said Alfred Taudes.

But such unilateral use is restrictive. Protocol innovations are always different than traditional ones because they change the way people interact, said the expert, adding that many new ways of using these protocols make it difficult to understand which ones are correct. And technology is changing more and more rapidly and constantly leads to changes. Although crypto-currencies are the first major use of blockchain, there are also new changes, one of which is the way venture investors work.

So far, traditional startups had to raise funds through venture capital, thanks to the blockchain, they have the opportunity to do so with the primary Coin Offering (ICO), explained Professor Alfred Taudes.

This, on the one hand, is one of the reasons why so many crypto-currencies exist, but it is also a new way to raise venture capital.

“Blockchain is already changing the way venture investors work”, said Professor Taudes. According to him, one of the following spheres, which will be drastically changed by block, are those of the Crowdfunding and the financial sector as a whole. The expert’s expectations are also for changes in the energy sector as these products are “ripe” for this new type of innovation. The Professor sees the future in the supply chain, where blockchain and artificial intelligence can create entirely new solutions.

“We will certainly see changes in the way the energy market works”, added he.

But there is no lack of “foolish suggestions”, as he calls them, about the use of the new technology, which comes mostly from the fact that people in the business have to understand what it can or can not do, but not how.

“All of these ideas will not work because people do not understand what technology is doing”, said the professor.

In part, he attributes this lack of familiarity to the lack of quality literature on the subject.

“Most of the books I find are really bad. They lack depth, and sometimes it is unclear what this technology might be”, said Alfred Taudes. “At the same time, a major part of YouTube’s literature and videos on the issue are mainly focused on the Bitcoin and the speculation with it”, added he.

However, this is not surprising, since undoubtedly one of the topics that excited most markets at the end of last year and early this year was the price of the crypto-currencies.

Regarding the expectations of its value Professor Alfred Taudes is joking that prediction is particularly difficult when it comes to the future. Still, he thinks that both Bitcoin and crypto-currencies in general will not lose their positions, as they are already extremely popular especially among the younger generation that will not give up.

According to him, the price of a large part of the crypto-currencies will come close to zero, but this will be mainly due to the fact that the application for which they are made will become useless. However, this will certainly not happen with currencies such as Bitcoin or Ether.

Nevertheless, their prices remain volatile and the regulatory element is becoming an increasingly important factor in their value. Earlier this month, just within one weekend, crypto-lows lost nearly $ 42 billion in market value after a message of new South Korean cryptobus aft.

Against the backdrop of such frequent occurrences, the authorities are increasingly raising their knowledge of the new currencies, aware of how to track them and, above all, start talking about regulating them. As an example, Professor Taudes gives Austria, where a working group at the Ministry of Finance is set up, which deals exactly with the ways to control crypto-currencies.

“Fortunately, the entire public sector knows that this is a very important innovation and we must not kill it with stupid regulations”, said he, emphasizing the need for quality control.

Without regulations, crypto-currencies will never be accepted by mass consumers as ordinary people need protection that they do not currently have. In his words, this new type of technology is currently used by between 5% and 10% of people, and this percentage will not increase until control is provided.

And that certainly does not escape financial and political institutions. According to Professor Taudes, they should not be underestimated when it comes to understanding this new type of technology and the need to regulate it.

“I have the personal feeling that banks are just waiting for good regulation to be made so they can start offering crypto-currency financial products, but of course this can not be done without regulation”, said Alfred Taudes.

In Austria, virtually every big company has a young specialist responsible for blockchain technology. But one country is not enough. According to Professor Taudes, regulation can not be just national, as it is an international business. It must be at the level of the European Union, which will certainly take time.

Regarding the question of whether technology regulation would not be against its initial philosophy, Professor Taudes said with a smile that like any other new technology it will be used by the status quo.

“Undoubtedly, blockchain technology will fundamentally transform the economy, which will require the need for business to adapt”, said Alfred Taudes. “I do not know when, but I’m sure it will happen”, added he, joking that if he knew who would be the next Amazon or Google on a blockchain he would not continue to work as a professor.

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