People’s Bank of China’s Cryptocurrency Research Lead Expects More Centralized Approach towards Blockchain
On Friday, Chinese business news published an article in which Yao Qian summarized the present state of development of bitcoin and blockchain technology and gave his opinion on how the future of tech should play out.
While lauding blockchain’s features of smart contract functionality and traceability, the research director restated his belief that blockchain’s present bottleneck lies in how to accomplish scalability while keeping consensus with well-established community governance.
With that in mind, Yao Qian wrote that industry shouldn’t be too stringent in adhering to completely decentralized governance, instead contending for a more flexible approach.
The research director stated:
“We expect in the future there will be a new area between the two polars of centralization and decentralization. Every blockchain system will have a different level of non-centralization in order to meet the demand of different use case scenarios.”
He continued, a significant problem with decentralization in public blockchains, is that there is no way to pause or close down the system when facing an urgency requiring technological updates.
For example, he contended that the DAO project, which encountered an infamous hack in 2016 due to coding bugs in its Ethereum smart contracts, uncovered an issue where a decentralized system must solve technological problems through what he called “chaotic” hard or soft forks.
Accordingly, Yao Qian envisioned that a combination of a blockchain forming a non-centralized network, with each operating as a center of control, as a feasible way for blockchain technology to develop in future something he said is vital for risk control and technological changes.
Yao Qian comments follow with the statement made by other executives from China’s Central Bank around its potential use of blockchain technology, including creating a state cryptocurrency.