Da Hongfei, NEO’s Founder Promotes The Emergence Of A New Regulatory Framework For Blockchain Technology

regulations

The founder of NEO, Da Hongfei, recently talked about how over-regulation in the blockchain space will affect its growth. He said that it is important for a new regulatory system to be developed. This was during an interview on the 30th of October. In his words:

“Practically, blockchain technology cannot survive within the current financial regulatory system. Institutes that are already licensed might not want to corporate with companies that use blockchain technology because they already have licenses to conduct their business. Such a company wouldn’t bother to enter any partnership that doesn’t benefit it a great deal. If blockchain companies don’t get licenses, they will not have the permission to promote mass adoption”.

In some countries like China, initial coin offerings and cryptocurrency trading are still illegal. China hasn’t created a progressive cryptocurrency regulatory framework. The Public Bank of China placed a ban on cryptocurrencies which is still in existence.

Hongfei said that everyone is expecting the distributed ledger and blockchain technology to disrupt the current financial industry. While these emerging technologies have what it takes to change the game in the financial industry, the lack of a suitable regulatory framework will continue to act as a barrier. Of all the industries that are currently trying to implement blockchain technology, the gaming industry may enjoy the most transformation. He continued:

“Soon, blockchain games will present a virtual world that is similar to the one we see in the sci-fi movie ‘Ready Player One’. In this movie, virtual assets were recorded on a blockchain and implementing blockchain technology was only possible because of the flawless economic model. While I don’t know when these games will be available yet, I hope my daughter will be able to play them”.

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During the interview, Hongfei was asked about the NEO’s move towards decentralization. While NEO is based on blockchain technology, it’s primary nodes are still operated by the NEO Council. This means the system is somewhat centralized and the council has power over network decisions. In reply to the question about decentralization, Hongfei said that the network is still scalable and centralization isn’t possible because a single group cannot control the number of nodes that exist on NEO’s blockchain. What this means is that even if the NEO Council has access to the nodes, they can’t virtually control it. In his words:

“Majority of the network votes come from our team and exchanges giving the NEO team more say in the network decision making process. In the future, our team will give the voting power to the public and have less influence on voting results”.

Hongfei was also asked about how NEO intends to survive competing projects. In reply, he said that NEO stands above competing projects because its platform is developer and user friendly. He said that the team continues to provide documentation and tutorials for developers which are essential to the growth of the network.

In conclusion, Hongfei had something to say to investors in the cryptocurrency industry. He encouraged them to make time investments over money investments. In his words:

“Investors should invest in intelligence and time. Members of the community should be creative. They should not just be concerned with the profits they intend to make from an investment short term”.

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