In an AMA with r/btc on the 16th of this month, Jesse Lund clarified questions about hurdles for the adoption of blockchain and cryptocurrencies, and on the viability of proof-of-work systems. This came after he revealed that companies are moving into the cryptocurrency exchange space and the make-up of IBM’s blockchain team.
When asked about the hurdles faced for the adoption of blockchain and cryptocurrencies, Lund answered that it depended on the familiarity, dependency, and the reputation of the technology, which he stated would come with time.
He gave the example of the evolution of minted coins to paper banknotes, which was met with a lot of resistance from the authorities at that time. He further added that when the heated discussions and debate atmosphere around cryptocurrencies goes down, businesses will adopt the technology. He said:
“I see Bitcoin as an utility as it is a fully operational, autonomous, global real time settlement system that is integrated with all major currencies.”
When asked about the viability and efficiency of proof-of-work systems, he said that it was inefficient with respect to the consumption of electricity. A recent research showed that Bitcoin mining will use 0.5% of the world’s energy by the end of the 2018 year. However, Lund confirmed that he believed that it was an “equitable way of distributing money supply”. He also believes that the future would be a world where “mining goes away”.
Lund also spoke about how interoperability of public networks where many different digital assets live is the catalyst for future use-case scenarios might disrupt big firms today. On the presence of tokens on a public ledger, Lund said:
“If you have tokens on a private network you limit the accessibility by which they can be traded with other people. That may be intentional or there may be a reason for that, but in the general case…we see that many assets today are digital…There is friction because networks don’t work together, these assets [equities, securities, commodities, utilities] become more widely accessible if they are on a public network.”
Lund confessed that he was a big fan of the Stellar Consensus Protocol. He also spoke about how IBM as a company is “implementing solutions on the Stellar network”. He said that Stellar and IBM had a “very strong” partnership.
“ This is part of our partnership with Stellar and why we like it so much because there’s a lot of flexibility… Stellar is a wonderful, scaleable, high-performance, publicly accessible digital asset registry”.
With this, Lund finished the AMA and thanked the questioners for participating.