Blockchain Can Pave the way for More Inclusive, Borderless Economy, MIT Professor Says

According to MIT (Massachusetts Institute of Technology) professor Silvio Micali, the Blockchain technology can make way for the generation of a borderless economy. The MIT Professor made the declaration in an interview with Bloomberg’s Daybreak Asia, on January 21.

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During the Bloomberg show, Micali outlined three key elements of Blockchain protocols that must simultaneously function to facilitate a more inclusive borderless economy, which will ensure security, decentralization and scalability. According to the MIT Professor of Engineering, only two of the three basic properties cited above could have been simultaneously achieved at any time.

Micali: Decentralized Systems Need Superior Technology

During the program when asked about the issue of scalability, Professor Micali cited that a decentralized protocol really needs a superior technology to have the ability to offer the same level of participation as well as confidence that is typically enjoyed under centralized systems.

Regarding the issue of security breaches in Blockchain initiatives, Micali indicated that centralized networks are typically more vulnerable or disposed to hacking attempts, due to the frequency of privacy and security breaches that take place repeatedly among various types of centralized institutions.

Micali Positive About the Blockchain’s Level of Security

The MIT Professor went on to show optimism regarding the Blockchain initiative regarding security, going on to note the level of security instilled into the concept or idea of a trustless system. In his words:

Only under a truly decentralized system, where power is spread to the point that it is going to be practically impossible to attack all at once and when you do not need to trust any particular node, will bring the security we need and deserve.”

Recently, a number of major Universities in the United States including MIT, the University of California, and Stanford University, revealed the launch of the Unit-e initiative a cryptocurrency project that has been touted as a “worldwide scalable decentralized payments solution.”

Earlier this January, MIT Technology Review published an article claiming that the year 2019 will be the year the Blockchain technology will finally be normalized.

Japanese Based Rakuten to Move Exchange to its New Payments Subsidiary

In other reports, Japanese e-commerce startup Rakuten has revealed that it will conduct a revision of its corporate structure in a bid to set up a new payments or transactions subsidiary that will include its digital currency business. The report first came to light via an official post by Cointelegraph Japan on January 21.

Rakuten, which is informally known as ‘Japan’s Amazon,’ revealed back in August last year that it would be seeking to reorganize its different offshoots in a bid to improve accountability and streamline decision-making processes. Now, Rakuten says it is going to rebrand its loyalty subsidiary known as Spotlight Inc. to a new entity that will be called Rakuten Payment. Rakuten Payment will run Rakuten’s digital asset exchange business.

Rakuten Payment, along with the other details of the planned restructure should be ready to go live by April 1 this year according to the company in an accompanying press release on January 18 2019. Once Rakuten Payment has been launched, it will create an umbrella for two basic operations including crypto exchange Everybody’s Bitcoin (which Rakuten acquired in August last year) and Rakuten Edy a prepaid card service.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

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