In 2018, companies will not be able to resist the attractiveness of the public chain

nRunaway commentary: Blockchain enthusiasts and professionals have made many assumptions about the future of this technology. The writer is a head of blockchain technology at Ernst u0026 Young. In his article, he predicts on behalf of tokens and the future development of the blockchain with his expertise that the publicchain will provide the greatest help to the business, saying that the foundation of such a vision will come true in 2018. In general, blockchain technology, which received the mainstream attention last year, will continue to develop this year.n
nTranslation: Inan
Regardless of your dissatisfaction with Cryptokitties, you have to admit that this application does what almost every enterprise blockchain can not do: exchange one value (cryptokitty) for another (Ether).n
Cryptokitty may seem silly as a value, but enough for those who follow it.n
More importantly, the entire contract and the transaction, including the trading of the product, take place on the Ethereum blockchain. At Ernst u0026 Young, our assumption is that this less-friction closed-loop economic transaction is in fact the ultimate form of desire for the blockchain in most businesses.n
However, we are still far from our goal.n
Currently, many enterprise blockchains still operate as distributed databases and notary services, often with very specific goals, such as tracking product sources. This is not a bad start, but if we’re not careful then it’s possible to go to a dead end – a daring anti-hacking database.n
In order to realize the full commitment of blockchain technology, we think companies must embrace the full benefits of tokens and the appeal of public networks. This will happen in 2018.n
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Token eran
The future is based on the notion of tokens: the company’s products and services are presented in the form of blockchain digital tokens that exist not only as information items but also as value carriers.n
Such digital tokens can represent everything from medication to cell phones and even music. No matter what they represent, they should all be given ownership and value. If you have 1,000 phones and each has a value of $ 1,000, then the blockchain should represent them in 1,000 tokens worth a total of $ 1 million.n
The value of the blockchain can be exchanged for when manufacturing, delivering or selling products, for example, 1,000,000 token tokens for one million. This includes not only bitcoin or ether, but also the dollar, euro or yen.n
Disregarding the debate over the long-term value of traditional and cryptocurrencies, one obvious fact is that the corporate CFOs want the money they get exactly what they normally use.n
This means that traditional legal currency is to be tokenized and carried out in the same blockchain where products and services are to be tokenized.n
Having two types of tokens in the same blockchain is crucial – it enables seamless exchange of value with less friction and less risk. Cross-chaining is a good idea, but they do not have the advantages and convenience of direct exchange.n
The central bank is already trying to monetize its own currency, but only in a private licensing chain governed by the central bank. It’s a good start, but then they should create a legal and regulatory framework that will allow the currency to be monetized on any industrial or public blockchain.n
Once a closed-loop, monetized industry blockchain appears, many of the important foundations of a single blockchain will become additional functions in a truly economic blockchain. If you believe the 1000 handsets are real, trade finance is handy, and you can lend money to others through tokens in the blockchain.n
Similarly, customs declarations, tax calculations, product records and sources can be easily obtained by looking at the history of tokens in the blockchain. Trade finance, payments or product traceability do not require a separate blockchain.n
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Two stagesn
This vision of the future will begin in 2018 and will have two distinct phases.n
The first will be what we call the development phase of a full-cycle economic blockchain – products and services are tokenized and exchanged through digital smart contracts for digital tokens. This foundation may start with sales, purchasing and logistics, and then increase trade finance and other related services.n
The second phase will be the gradual emergence of the public chain as the preferred ecosystem for these transactions.n
We believe that decentralizing the public chain is the only way for businesses to truly and deeply digitize their products and services in a fully interoperable manner. No company wants a centralized agency to be a trillion-dollar center for exchange of products and services that will have inherently strong monopoly power and be protected by powerful cyber-effects.n
The second phase of development will depend on the maturity of transactional privacy tools such as zero-knowledge proof.n
Current transactional scalability and data privacy are not enough for many competing companies to put their strategic deals in the public chain and be confident they are safe, but those risks will disappear in 2018.n
In addition to privacy issues, there are many other challenges to using the public chain in your business, including how to enforce regulations and related KYC and AML regulation.n
We think these problems can be solved and can be solved without the need of centralization. For example, we have been testing the idea of ​​decentralizing legal token tokens on public networks in accordance with AML and KYC rules.n
Lastly, the temptation of the public chain network is huge. This is the only way companies can ensure that they are treated fairly in an open, transparent and verifiable environment.n
In 2018, the basis for this future will emerge and we will see the first pilots of these concepts on the public-chain network.n

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