Recently, at the Next Conference 2018, Joseph Lubin, the Co-Founder of Ethereum spoke about the current status of the cryptocurrency market. He also discussed the pros of leveraging applications like Facebook on the blockchain.
Joseph Lubin began by discussing the price drop in the cryptocurrency market. On being questioned about the reasons behind the price drop in the market, he stated that the real question should be the reason behind the increase in its price. He went on to say:
“I think the market goes up because the technology is really quite profound, and people understand that we’ll be able to build things with it as it matures. That will radically transform society for the positive.”
Giving the example of the late 90’s dot-com era, he stated that people wanted to be a part of the era because they believed it can be “societally transformative”. Lubin further added that the other reason for the boom was the thought of making money.
He further added:
“Many times since the advent of Bitcoin in 2009, five or six times we’ve seen remarkable surges of excitement, irrational exuberance, and those moments tend to overshoot what the actual fair price might be for these tokens.”
Lubin believes that the cryptocurrency market will witness another January 2018 peak. He stated that the market will observe “corrections”. According to Lubin, the corrections seen up until now in each peak were much bigger in comparision to the previous corrections. Lubin went on to say that the price corrections co-related well because the market is still in its early days.
Lubin stated that there has been seen some interesting use cases for blockchain technology and cryptocurrencies. However, he believes that, at present, it was not “fundamentally systemically” important to society.
The co-founder further added that the cryptocurrencies will witness high fluctuations in the market. He also stated that the cryptocurrencies were a “narrow slice” of the full potential of the blockchain technology.
He further spoke about the possible advantages of appending the blockchain technology to the internet. Lubin said:
“One thesis is that the Internet is somewhat broken right now. The internet and the web technologies have taken us very far in terms of transforming society over the last couple decades roughly but the technology is missing natively digital assets or digitally scarce assets and it’s missing an identity construct.”
According to Lubin, “identity construct” was the most important thing on the web. He stated that the current web technology was lacking in a healthy identity construct. From a users’ perspective, Lubin said that applications like Facebook would have a different identity if it was built on the blockchain.
Exemplifying, he said that Uport, an application powered on the Ethereum [ETH] blockchain enabled the creation of the root of a digital identity on the public blockchain.
Uport provides digital lockers to encrypt the identity on the public blockchain, he added. Lubin stated that these features will allow encryption of personal information on the blockchain and also provide an opportunity to selectively disclose the information when required.
Joseph Lubin said:
“I’m not saying the Facebooks’ and Googles’ of the world won’t be able to continue to pursue their business model but they’ll be doing it probably with lower quality data, the stuff that I’m willing to spray across the internet in order to access their services.”
He concluded by saying that with blockchain, owners can control higher quality information like health and financial information and make it available on the data market for a certain fee.