Balaji Srinivasan, the CTO at Coinbase, believes that digital currencies are entering the tech mainstream. This is despite the over 70 percent correction that has been witnessed in the market in 2018. Crypto coins have lost almost $600 billion since the beginning of the year. However, cryptocurrencies and the blockchain have shown significant progress regarding being institutionalized.
Srinivasan who is also a venture capital investor recently said:
“Sundar Pichai & Sergey Brin’s sons are both mining crypto; Facebook is doing blockchain; Square open sourced some nice cold storage code; Microsoft, Amazon, Google Cloud all have blockchain efforts; crypto is entering the tech mainstream.”
Tech Companies Are Embracing The Blockchain
Now tech companies have started to see the potential benefits that they stand to gain from embracing the blockchain technology. The tech helps process data through segregation and stores it in a series of blocks through a peer to peer process. However, to eliminate bad actors with malicious intentions, an incentive system is utilized. The incentive is a cryptocurrency on the blockchain network.
In a bid to understand this nascent technology, tech companies, and tech enthusiasts are starting to mine crypto-coins that support major blockchain networks.
Last year, it was reported that the fourth largest asset manager in the world, Fidelity Investments was engaging in mining the top two cryptocurrencies. They were trying to understand the concept of mining and also the necessity of cryptocurrencies.
Fast forward one year and a half and the company has already established Fidelity Digital Assets. The new firm offers custody services for crypto assets and helps institutional investors get into the crypto market.
Also recently, Sergey Brin, the Google co-founder, and Sundar Pichai, the company’s CEO revealed that their sons have been mining Ether, the native currency of the Ethereum blockchain.
Pichai went on to state that he was surprised his 11-year old son understood the concept of Ethereum better than fiat currencies.
“Last week I was at dinner with my son, and I was talking about something about bitcoin and my son clarified what I was talking about was Ethereum, which is slightly different. He’s 11 years old, and he told me he’s mining it. I had [to] explain to him how paper money actually works. I realized he understood Ethereum better than how paper money works. I had to talk to him about the banking system, the importance of it. It was a good conversation.”
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.