Circle’s CEO Jeremy Allaire Defends the Bitcoin Blockchain

By November 10, 2015Bitcoin Business

Banks, financial service providers, venture capitalists, and even governments, are showing more and more interest in blockchain technology. Venture capital money is flowing into blockchain companies, banks, credit card companies are experimenting with blockchain-related pilot projects, and public administrations are taking a more active role not only in regulating blockchain-based services, but also in stimulating the development of blockchain-related fintech and startups. At the same time, a difference is often made between the blockchain technology and the specific blockchain implemented in the Bitcoin network. Bitcoin is considered as far too open and anarchic to be a suitable foundation for a solid financial system. Jeremy Allaire, co-founder and CEO of digital financial service provider and “bitcoin bank” Circle , has written a thoughtful analysis of the blockchain vs. bitcoin issue on Re/code . “If bitcoin is referenced, it’s dismissively, as if smart people are in the know that bitcoin (the digital asset) isn’t necessary or important to fueling this global network of distributed and decentralized trust,” says Allaire. “For the most part, it’s just a cop-out and intellectual laziness; I have yet to meet anyone who shares these thoughts who actually has any idea how any of the technology actually works.” Allaire notes that the troublesome features of Bitcoin – its openness to everyone and its lack of centralized control – are exactly what make the Internet work. The success of the Internet and the failure of all the closed, regulated versions of the Internet that have been implemented, should suggest that openness is necessary for a robust blockchain system to work. In many recent articles, Bitcoin Magazine reported the trend toward private, “permissioned” non-Bitcoin blockchains, supported by Accenture and Digital Asset Holdings CEO Blythe Masters . Permissioned blockchains, under development by giant Swiss bank UBS , Bitcoin exchange itBit […]

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