A Senior Executive at Ernest & Young Has Backed Ethereum and Doesn’t Think Private Chains Have a Chance
If more protocols are developed on public networks, notably Ethereum, private blockchains won’t have a chance, according to Paul Brody. Brody shared his thoughts on the Real World Summit keynote addresses through Twitter.
Brody predicts that large financial institutions working on or investigating private blockchains like R3 Corda would quickly recognize their strategy is “ineffective in driving adoption.”
Top cryptocurrency companies such as Coinbase (a cryptocurrency exchange) and Circle (the issuer of USDC, the second biggest stablecoin after USDT) hosted an invite-only summit on September 19 called the Real World Asset Summit. At the event, Brody and the other guests heard from industry leaders on topics including tokenization, cryptocurrencies, and credit.
About 250 people attended the New York event, and among the 40 presenters were prominent figures in the field of decentralized finance (DeFi), such as Robert Leshner of Compound and Jesse Pollak of Base, a layer-2 protocol for Ethereum. Because of Brody’s remark, it’s not obvious to whom the expert was referring.
The principles of decentralization and openness are at the heart of public networks like Bitcoin and Ethereum, in contrast to private, closed chains. Anyone with a crypto wallet and an internet connection may communicate with the underlying layer, thanks to the transparency given by public chains.
Free hot wallets like MetaMask and Coinbase Wallet provide users with an entry point onto the underlying blockchain, allowing them to send transactions, trade, mint, and do much more. Users of Bitcoin and similar networks are limited to sending funds between nodes in the same region.
Some of the more popular ledgers, like as Ethereum, may have succeeded because users were able to deal freely in a completely open and safe environment. On September 20th, Ethereum’s market valuation surpassed $195 billion thanks in part to backing from large financial institutions and payment processors like Visa and PayPal.
Visa is developing a program in which cardholders may use their cards to pay for Ethereum’s gas expenses. This update may grow Ethereum’s user base by letting people utilize the network without having to spend ETH on gas costs. But PayPal has already launched its stablecoin, PYUSD, on Ethereum through Paxos.
Earlier versions of Ernst & Young’s (EY) Blockchain Analyzer: reconciler supported among other blockchains, Ethereum and Bitcoin, but this year’s release introduced support for Dogecoin (DOGE), increasing the amount of currencies accessible to its clients. The software facilitates the auditor’s matching of client data with the general ledger.
Also Read: PayPal’s Venmo app now supports the stablecoin PYUSDy
