Blockchain Needs Centralization, Chinese SEC Believes

An official from one of China's financial regulators believes that blockchains are better without full decentralized
06 March 2018   475

A Chinese official from the financial department, speaking at a Beijing state conference said that a completely decentralized blockchain  is not the most optimal solution. This is reported by CoinDesk.

Speaking at the People's Political Consultative Council of China as a policy advisor, the head of the technology department of the Chinese Securities Regulatory Commission, Zhang Ye, called on China's public sector to use advanced technologies such as AI and blockchain to provide state services.

But with one caveat - although Chiang believes in the potential of the blockchain, it is necessary to use a centralized infrastructure to fully realize its capabilities.

Blockchain's advocates for absolute decentralization have no solid ground, because [blockchain] itself is a software developed in a centralized way. So is the public key infrastructure, which remains an important feature adopted by blockchain. The key is to explore how to achieve decentralization through a centralized infrastructure.
 

Zhang Ye

Head of the technology unit, China's Securities Regulatory Commission

According to Zhang, in some cases, decentralization can really do more good, but he doubts that absolutely all the blockchain should be decentralized.

In addition, according to Li Lihui (former president of the Bank of China, and now - head of the blockchain research department at the Chinese National Association for Financial Activity on the Internet), many of the current blockchain projects are designed, in fact, using a variety of centralized elements and without full decentralization

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   137

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.
 

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.