Da Hongfei, co-founder of Neo, spoke about the challenges and innovations brought about by blockchain technology.
Problems Facing the Blockchain Industry
Da Hongfei raised awareness on the various challenges the blockchain industry faces. One of such problems is the fact that blockchain information is available for the public to access, preventing people from protecting confidential information they wouldn’t want the public to know of.
He also stressed that blockchain storage space is very expensive to purchase, and this can pose a serious challenge to users who would welcome a reduction in the cost of storage space when their storage limits have been reached.
Blockchain Technology and Whether It Matters
On the importance of blockchain technology, he proposed that if blockchain becomes more sophisticated, it could enable several organizations to expand and to collaborate efficiently with one another. If blockchain technology is not improved, this could limit firms from expanding.
The Blockchain Bubble
Talking about whether blockchain is a bubble, he spoke about transaction cost and how it can affect the market. “Transaction cost,” as one economist defines it, is a combination of several costs, including transaction security cost. Most of these costs can be reduced.
With the introduction of the Internet, the cost of information is reduced. Since blockchain is a trustless ledger, considering the fact that the transaction security cost needs a trustless system to reduce, the transaction cost can be reduced. If the transaction cost is reduced in an open-market with very few losses and more profits, more individuals will want to engage in transactions, and this can be of benefit to all of them.
After addressing these important questions, Da Hongfei postulated the “container theory,” which compares containers to tokens because tokens are programmable, economical and standardized. He believes that the use of tokens will not only enable collaborations between firms on a large scale but would be more efficient in global trading.