I just came across an interview in which the QTUM CEO, Patrick Dai, discussed the future of the QTUM blockchain. From that interview, I took out some interesting points. One of the most important takeaways from this interview is that a lot of people involved in the blockchain space are either too greedy, or just don’t understand the whole idea behind this technology.
According to Patrick, blockchain technology is all about decentralization. Unfortunately, in a decentralized environment, it is impossible to have highly efficient transactions. As he puts it, blockchain is a trade-off between centralized efficiency, and decentralized fairness. So what does this really mean? Well, it means that a good number of platforms purporting to use blockchain technology to enhance efficiency are lying. That’s because centralized entities will always outperform them. The whole reason why such platforms have surged in value is because, people are yet to fully grasp the tradeoff between decentralization and efficiency that blockchain technology has to deal with. In essence, there will be no time when a blockchain based project will ever beat something like Visa in transaction speeds, and still stay decentralized.
Another issue that Patrick raises in the interview is the high number of experimental Dapps platforms that are in the market. Unlike many of these projects, QTUM is built on the tried and tested Bitcoin blockchain, which is one of the most secure blockchains. As such, anyone who launches a Dapp on QTUM is sure that the project is secure, and will work.
He cites the Bodhi, a project that runs on the QTUM blockchain, as an example. Unlike many other blockchain based prediction markets, Bodhi actually works, because it is built on a practical blockchain. That’s quite different from many other projects in the market right now most of which, are prototypes. The implication is that we have so many useless ICOs in the market at the moment. They are only there to raise money through tokens then abandon the projects. According to Patrick, sometimes such projects don’t fail because the owners are scammers, they only come to realize later along than their ideas are too theoretical and can’t be implemented in the real world.
From this interview, one thing is clear, the whole blockchain ecosystem is at a very critical moment. There are so many projects in the market that are either promising the impossible (decentralized efficiency), or are trying out concepts that can’t work in the real world. What is likely to happen is that there could be a mass collapse of many of these projects, once investors realize that they are worthless ideas that have no value in the real world.
In essence, the long-term prospects of blockchain technology lies in projects like QTUM. Projects that may not necessarily be overhyped, but they are built to offer real solutions to real-world problems. If Patrick’s interview is anything to go by, then QTUM is a diamond in the rough.