One day before its announced discussion on blockchain, Brookings Institution posted an explanatory interview about the technology promoting the idea of “closed blockchain”.

The author of the interview is Tim Swanson, the head of research at R3CEV. In a series of questions and answers he explains blockchain basics for novices.. From the very start of the interview Swanson distances himself from bitcoin enthusiasts and says that blockchain is not only about bitcoin.

“Cryptocurrency is needed if transactions are being conducted over a ledger maintained by a public or “permissionless” network, one to which anyone has access, such as bitcoin’s. If, on the other hand, the ledger is maintained by a well-defined pool of participants whose membership is not open to the public – an approach known as “a permissioned system” – then some aspects of the technology can be deployed without bitcoin or other cryptocurrency.”

According to Swanson, the blockchain technology opens many doors in many areas of activity.

“In some forms, the technology could primarily serve to improve efficiency in the back offices of financial institutions and exchanges. Several start-ups have been founded with that objective. Or the technology could be the means by which new players unseat entrenched institutions,” he noted.

R3CEV representative highlighted the problems blockchain is most likely meet on its way.

“These problems include hacking attacks on bitcoin wallets, governance challenges, threats to consumer protection, money-laundering concerns, resistance from entrenched financial institutions and raised regulatory eyebrows.”

In his interview Tim Swanson omitted the question of money laundering, which may seriously affect acceptance of the blockchain technology.

The interview was published one day before the announced “blockchain conference” at Brookings Institution. On 14 January representatives of the sector together with members of bitcoin community will meet officials interested in development of blockchain at Brookings main site in the centre of Washington. A CoinFox representative will attend the event.



Roman Korizky