Crypto Industry Need Banks, JPMorgan Says

Global head of ecommerce solutions says crypto companies will be forced to use the services of banks to move funds even privately
21 March 2019   264

Traditional financial institutions should not be perceived as competitors of the cryptocurrency market, but as its partners. This opinion was expressed by Ron Karpovich, global head of ecommerce solutions JPMorgan Chase American Financial Holding, in an interview with CNBC.

According to him, cryptocurrency companies, even if privately, will be forced to use the services of banks to move funds.

When it comes to margins and capabilities, payments is never something that grows in margin.  Nobody wants to pay for a payment. That’s one of the hardest parts of this process: you have limited resources and capability to sell; so you need highly efficient and large player.
 

Ron Karpovich

Global Head of eCommerce Solutions, JPMorgan Chase

At the same time, he called the improvement of the payment infrastructure the main purpose of the blockchain technology.

Every CEO would like to make things faster and cheaper. So from that standpoint, I think there's a buy into the concept of using blockchain. We are big players in the space. We created Quorum... We've also run the Interbank Information Network, which is a means for banks to connect to each other over the blockchain to share background data.
 

Ron Karpovich

Global Head of eCommerce Solutions, JPMorgan Chase

In December 2018, JPMorgan Chase & Co analysts said that the long-term stagnation of the cryptocurrency market scares off institutional investors from the industry. 

Bitcoin SV Blockchain to Undergo Reorganization

This happened due to the fact that some blocks were rejected by Bitcoin SV blockchain
19 April 2019   104

Several blocks were rejected by the Bitcoin SV network after the addition, which caused the re-organization in the blockchain's history.

Almost each time someone is trying to produce a very large block on the BSV chain, there’s a reorg. Just an hour ago our Blockchair engine has witnessed a 3-block reorg (I think that's a record)! Blocks #578640–578642 got orphaned by a longer chain because they were too big
 

Nikita Zhavoronkov

Lead developer, Blockchair

The large blocks, about which Zhavoronkov writes, are no longer displayed by the blockchain browser, since they are not part of the main chain in which they were located until a certain moment, until they were replaced by another chain, which eventually became dominant.

This is basically exactly the problem the BU gigabock testnet identified. At sizes > 100mb the mempools were so out of sync that blocks were basically transmitted as full blocks.

BSV had ONE 128mb block and it caused a six block reorg. On the BU testnet sustained 128mb blocks caused a total breakdown of the chain where there were so many reorgs that every node had a different view of the state of the blockchain.
 

Chris Pacia

Developer, Bitcoin

Thus, Chris assumes that the problem is caused not by the malicious actions of the network members, but by its functional bug. 

This update is noticeable in the background of recent Bitcoin SV delisting campaign, which was started by the number of big exchanges as a reply to lawsuit by Craig Wright, BSV supporter, against anonymous critic.