The creator of Ethereum thinks blockchain tech could steal business from Visa in a 'couple of years'
Becky Peterson
In a Q&A with AngelList founder Naval Ravikant at TechCrunch Disrupt on Monday, Buterin said that security is the biggest challenge to bringing blockchain technologies into the mainstream, and that once it's sorted out blockchain tech could steal business or even replace financial institutions like Visa in a "couple of years." Despite the hype around blockchain, most of the current applications that use the technology aren't far enough along in development to be used widely, he said.
But Buterin said that while he expects low-security prototypes to be introduced in the financial space by next year, it will be a few years before they have any weight.
Blockchain technologies like Ethereum are widely believed to be the next big disrupter for industries ranging from law to shipping.
Often described as smart contracts, the technology uses a decentralized computer network to send messages which create a universally accessible ledger that can't be edited or modified. Theoretically, with blockchain technology, business and legal transactions can be executed with a lower risk of fraud.
While Buterin was optimistic about the role Ethereum could place in replacing Visa, he was less certain about its impact on cloud computing giants like Amazon Web Services (AWS). AWS sells space on Amazon servers to third party websites like Netflix, which hosted vast amounts of data on AWS servers.
To disrupt the cloud industry, applications running on the Ethereum network would have to convince private companies that its decentralized structure is secure enough to host proprietary or otherwise sensitive content. Buterin doesn't see that happening anytime soon.
"In general, there's always going to be this large set of applications where decentralized approaches don't work that well," Buter said.
Get the latest Bitcoin price here.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- DRDO develops lightest bulletproof jacket for protection against highest threat level
- Sensex, Nifty climb in early trade on firm global market trends
- Nonprofit Business Models
- 10 Must-Do activities in Ladakh in 2024
- From terrace to table: 8 Edible plants you can grow in your home