Article by: Jerry Chan, Chief Product & Innovation Officer
TAAL was pleased to recently participate in Blockchain Expo 2021, a virtual gathering of global industry luminaries from commercial banking, regulatory, and central banking backgrounds, with TAAL participating as the only company building enterprise infrastructure applications on blockchain.
The resounding conclusion from the Future of Digital Assets panel on which I sat, and was sponsored by TAAL, is that after five years of anticipation around blockchain solutions being practical for real world solutions, it would seem we are now on the cusp of having the tech and financial establishment pay attention to the nascent industry of blockchain and bitcoin applications as a tech enabler for mass adoption.
This was all the more apparent when former Bank of England Governor Mark Carney mentioned that the regulators in Britain have open ears to suggestions on how to implement payment systems which can be applied to the aging real-time gross settlement (RTGS) system, which is used by most central banks to manage intraday cross border payments. The area of blockchain technology as a platform, and not a cryptocurrency, has been up to this point the modus operandi of private blockchain projects such as R3 Corda or IBMs Hyperledger, but as more and more businesses who explore private blockchains are discovering, it is that they hold no innate advantages over running a distributed database. As a result, many of these proof-of-concept projects are abandoned after the prototyping stage, when the business development has to make the case to stakeholders as to why this platform is worth investing in.
Tokenization was also at the heart of the Blockchain Expo discussion, referring to the application of public blockchain infrastructure to create digital twins of real world, or sometimes virtual assets, which can then be traded among participants in the ecosystem. The consensus was that while there are many projects which have recently garnered much attention in the rush to create digital non-fungible tokens (NFT’s) of digital assets, most practical uses of the technology will first be undertaken by proponents working to tokenize natural assets, such as securities, stocks, bonds and fiat currencies.
Indeed, for a tokenized marketplace of the future to exist, both the assets, and what is used to pay for them must be digital tokens on the same blockchain in order for the transaction to be atomic, secure, and efficient. Therefore, while the rush to tokenize digital paintings of the Brooklyn Bridge or Jack Dorsey’s first tweet may capture many headlines, the real litmus test will be when banks such a BBVA and others start to issue tokenized versions of their customers deposits. When the two sides of these initiatives come together, we will soon start to see the real boom in blockchain as a technology enabler as use cases expand exponentially.
At TAAL, we see scalability and stable, affordable transaction fees becoming an increasingly important central topic when considering the future of digital assets. As BitcoinSV (BSV) attracts more developments tools, and with a growing BSV ecosystem, we are uniquely positioned to achieve this long-term scalable solution for enterprise.