Vitalik Buterin gave a keynote speech at the recently concluded Wanxiang Global Blockchain Summit 2018 in Shanghai on September 11, presenting his outlook on the relationship between mechanism credibility and blockchain. Unlike his usual speeches focused on blockchain technology, Buterin instead focused on the practicality of the more complex socio-economic functions of blockchain and the corresponding challenges.
In his keynote address, Buterin stated that the best mechanism “tries to allocate best resources for those with the most need, whether it is projects, governments, or companies.” Some examples of this being voting, auctions, markets, and exchanges, including decentralized exchanges. How fairly and efficiently resources are distributed depend on the credibility of the mechanism design.
While a centralized mechanism, has been the norm, this kind of mechanism requires all parties involved to trust the central mechanism to operate correctly. Buterin notes that there are serious trust issues between people and centralized systems.
Buterin dedicated the latter half of his presentation to discuss what he believes are four significant challenges that prove a decentralized blockchain is not the best solution: miner/validator manipulation, privacy, anti-Sybil, and collusion.
Buterin concludes that:
“Blockchain can solve some problems but blockchain cannot solve all problems.”
While the Ethereum Co-Founder proposes a Multi-party Computation as a solution to mechanism credibility, Hong Kong blockchain startup Distributed Business Accelerator (DBA), believes the real answer is a hybrid model of centralization and decentralization.
DBA, founded in May 2018, is a core project in the Wanxiang Blockchain’s ecosystem. The firm experiments with differing approaches from the traditional ICO. DBA builds on the essence of decentralized blockchain for fairness and transparency but also looks at an innovative and unique system that is based on voting and token fund investments. The firm’s hybrid model lets community members participate in a private equity round via other means, but still dedicates the investment decision to the centralized token fund, which will count investment specialists and funds among its investors.
DBA will not conduct an ICO, with about half of the firm’s tokens instead distributed to the community via voting and contributions. The DBA has already executed three successful rounds of project selection in China. DBA’s international platform is expected to go live on September 18.
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