Two years post its mainnet’s arrival on the crypto and blockchain market, Neo is going strong. It is now the 15th largest crypto coin in the world with over $1 billion in market capitalization. The founder of Neo, Da Hongfei recently sat with 8btc for an in-depth interview about blockchain, stablecoins and the state of the market where he suggested that existing financial regulatory environment may not be sustainable for blockchain.
Why Is Blockchain Moving From Finance to Games?
On being asked about the focus of the blockchain industry, Hongfei commented that Neo is focusing on game development. He said that during the early days of the blockchain, people were expecting the technology to be applied in the traditional finance industry, likely disrupting it. However, as implementation is facing barriers in terms of regulation, games are becoming the focus of projects like NEO.
He also stated that there are only two ways in which finance and blockchain come together. The industry can either:
“Integrate blockchain into finance industry by either cooperating with a licensed traditional financial institute where the license may limit your business scope, and your activities may be limited to what is permitted under the license, which is a tricky issue for blockchain companies; or you may bypass the license by doing something that doesn’t need a license.”
He noted further:
“In essence; blockchain can barely survive within the existing financial regulation system.”
Competition Among Public Chains
Hongfei noted that originality is essential for a public blockchain. He also said that while there are several public chains, there is a shortage of developers and upper-layer application. Neo feels some kind of threat from its competitors. However, it reacts by creating a developer-friendly chain that banks on its ease-of-use.
He also said that while different areas in China have different approaches to development, North America has more marketing activity than it has developers. He also downplayed the emergence of stablecoins claiming that they are no different from their underlying fiat currencies. Though he agreed that there is a need for a stable, infrastructure-like cryptocurrency, he said that the goal cannot be achieved via the existing breed of stablecoins.