Almost five years ago, Overstock.com was the first major retailer to accept Bitcoin as a means of payment. It now accepts many top cryptocurrencies. As a member of Overstock.com's Senior Executive Team and Board of Directors, I was in the front row for these decisions.
It was not long before the Overstock team realized that the Bitcoin underlying blockchain technology had proven its promise beyond cryptocurrencies. We also knew that for the use of blockchain technology, the start-up companies that drive their use require both financial support and human capital.
For this purpose, Overstock established a venture capital blockchain incubator, Medici Ventures] We believe blockchain technology will affect many industries. We are already involved in promising developments in areas such as capital markets, money transfer and banking, electoral law, supply chain, ownership and self-employment. However, there is still a long way to go before blockchain technology can fully realize its true potential.
Here are the three key challenges that blockchain technology is currently exploring.
Finding Good Software Developers for Blockchain Software at the Enterprise Level [1
9659009] The world has become so dependent on computers that now virtually every enterprise needs software development . In this environment where demand is growing exponentially, it is difficult to find a good talent for software development. Unprecedented talents for the development of the game.
With Blockchain a new technology field, there are fewer talented enterprise-level software developers who understand this well. Those who do so can practically write their own tickets. While this is an enviable position for them, it limits many companies to developing attractive and transformative blockchain-based applications.
Let us remember that we are in the beginning of the blockchain.
At Medici Ventures, we provide regular in-house training to help our software developers overcome this important learning curve. In this training, which we conduct in educational presentations, sometimes involving accelerated coursework, our teams often present discoveries made during the development of a project, with the hope that the solutions for those working on other projects will be of great value Advantage are. This approach allows us to pollinate our industries and disciplines so that creative development and innovation tend to lead to rising tides rather than isolated peaks.
The time it costs to learn is worth it; That's why many of our portfolio companies rely not only on our risk capital, but also on our human capital. Until there is a regular pipeline of qualified blockchain developers, the lack of great talent will continue to be a battle for technology advancement.
Avoid the temptation of regulation
Like many others The legislators of Congress and of the state become aware of their constituencies, especially the blockchain. In a way, this is good news: Political engagement will raise awareness and interest in the use of blockchain technology and encourage acceptance of these new ideas. Unfortunately, this also brings with it the temptation of regulation in an emerging market.
I am worried that regulators and legislators are being told about any technological development because they are tempted to regulate it. As Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), said that he considered all initial coin deals (ICOs) as securities rather than commodities, he was deficient in the regulation of his organization and slowed down the ICO boom. While chairman Clayton and others at the SEC have later changed this attitude, this regulatory tendency to fear the new is dangerous.
The interconnectedness of the world means that its adoption will likely quickly take root and flower.
Technology – and the advancement of blockchain – should not be regulated. In the 1990s, when the potential of the Internet became apparent, the legislature decided not to regulate . This decision by both parties led to the creation of the much-praised "data highway" and the current power of the Internet in the open market.
There will certainly be use cases that require regulation as blockchain applications evolve and spread. However, the growth of blockchain technology is best promoted if it is free and unrestricted by regulation.
Achieving Critical Mass
Cryptocurrencies and Blockchain-based digital wallets are a huge area of technology. In order for cryptocurrencies to be used more often and their prices to be stabilized and digital purses widely used, consumers must spend more on cryptocurrencies and traders must accept them. A good example is Colu, an exciting new company that I recently saw in Tel Aviv, Israel. Colu is a digital purse that uses blockchain technology to create local currencies. People just download the app, add money and buy locally. The app highlights local amenities and makes shopping convenient. And the people in Tel Aviv are amazing!
The same is true for other blockchain-based applications, such as Secure Remote Digital Voting. West Virginia was recently the first state to allow overseas citizens to vote remotely with a block-chain-driven app. The West Virginia program was tested in the May Primary Program and used in November's parliamentary elections.
We'll know that blockchain technology has become mainstream when we stop talking about it.
Some critics have quickly reduced efforts to create digital voting with purely theoretical concerns. In fact, the rollout in West Virginia is a very focused solution to a specific problem: low voter participation overseas. The current system is defective. A blockchain-driven digital voting app is a clear solution. Everyone but progress critics should eagerly support the efforts of West Virginia until there is cause for concern.
When a blockchain application is accepted in sufficient numbers from both the user and acceptance sides, the impressive software becomes an invaluable and ubiquitous tool. A more widespread application of the most useful use cases of Blockchain will trigger network effects that multiply the benefits.
Let us remember that we are in the beginning of the blockchain. Many industry observers seem to be in a hurry to declare Blockchain a mainstream technology. As enthusiastic as I am about supporting Blockchain, I would not call it mainstream yet. The networking of the world means that its adoption is likely to quickly take root and flower. We'll know that blockchain technology has become mainstream when we stop talking about it, but we just use it in everyday life.
I'm thrilled that digital purchases and remote voting in elections are made with this modified game technology. As developers, investors and companies continue to focus on the use and development of the blockchain, we will find that the search for good software developers for blockchain software, blocking the growth of unnecessary regulations and achieving critical mass usage are the next important steps in the process Growth and acceptance are this globally changing technology.