Chris Larsen, the Co-Founder of Ripple Labs Inc., recently spoke at the CFCon USA 2018, regarding the revolution of blockchain technology.
Larsen stated that blockchain is the most hyped technology in the present date. He stated that the Fintechs have received the most attention due to this and it was the first time they have become truly “global.” According to Larsen, it represented a final step on globalization. Larsen stated that there was no future for a world unless it was more global or more interoperating on an international basis.
Additionally, Larsen said that globalization was not a “bad thing.” He quoted it as a work in progress. Furthermore, he stated globalization was incomplete without three key elements namely, data, goods, and money. Larsen believes that the world has seen globalization in terms of data, and goods but not in terms of money.
Speaking about the third key element money, Larsen stated that it was still stuck in the 70’s or before, which according to him was holding the world back and wasting trillions of dollars. Giving an example of the implication lack of interoperability of money, he stated that people will not be able to send 50 Euros without being charged heavy fees.
Larsen stated that the Bill and Melinda Gates Foundation believes that 2 Billion people in a developing world must be able to send 50 cents across the border to really be participating in the global economy. He argues that such a participation is not possible in a system built in the 70s, swift correspondent banking as there were not enough profits and banks would not engage themselves.
In Larsen’s opinion, the discussion was too converged on digital assets and blockchains. Adding further, he stated that he would broaden that out and say that what really was happening was the “creation of an Internet of value.” According to him, people will start shifting their focus towards interoperability.
Larsen concluded by stating that the key requirements for any blockchain to be a part of this new global interoperable ecosystem is to be open source, decentralized, secure, have a settlement predictability, be cost-effective, have a high throughput, and consume less energy.