Digital Bytes S4 E8 Feb 22nd - Featuring Andrew Delves, Head of Crypto and Digital Assets, ClearBank with James Tylee and Jonny Fry
Welcome to this week’s Digital Bytes. This week we have analysis on the following topics:
The scalability of DLTs and blockchains
One of the reasons for not using DLTs and blockchain-powered platforms was that they were considered to be unscalable. However, there are now a number of examples where DLTs/blockchains have been deployed - indeed, handling huge amounts of data quickly and in a very secure manner. The ability to process and automate transactions using smart contracts has led to the creation of new ways to handle trades in the form of automatic market makers - which could have implications for the way that different securities are traded.
Blockchain interoperability - there are more than 100 blockchains that have varied specifications and serve different use cases, and interoperability refers to the capacity to transfer value between those networks that use the technology freely. Interoperable blockchains enable applications to employ smart contracts on multiple blockchains, and digital assets can be traded between these blockchains. Interoperability is a goal of many projects as it ensures that more users are able to use the blockchain.
dApps: helping to power new decentralised products and services - decentralised apps (dApps) are the backbone for many blockchain innovations, such as DeFi. They have more use cases than financial systems and they are used across different industries worldwide. Questions worth answering are, what application of dApps will drive DeFi’s future, and whether dApps will be widely adopted in the financial sector?
Building trust to move out of the crypto winter - much has been written and discussed about the ‘crypto winter’ that has hit the cryptocurrency industry, so how can players set about speeding up the arrival of spring? It is vital to rebuild trust through governance, education and protection - including partnering with banks to explore ways of innovating and further protecting customers. Crypto-bank partnerships could be key to strengthening customer confidence and moving out of winter.