One of the fundamental problems facing economies around the world today is sustainable growth. But governments are also neglecting to use the blockchain to help improve efficiency and transparency, says Joe Holles de Peyer, Chief Operating Officer of Gate2Chain.
Gate2Chain’s Development Suite allows you to connect new or existing apps, websites, games, or any other system to the BSV Blockchain. Speaking at the recent Blockchain for Enterprise event in Poland, Holles de Peyer noted that the last few years have seen governments take control of the growth environment in the context of Covid, damaged supply chains, rising inflation and the rise and fall of cryptocurrencies.
These factors have slowed growth in many industries, made worse by a declining appetite for risk, he said.
‘Very few people can elucidate a path to true trustworthy growth. Ironically a byproduct of this perfect storm has been an undermining of blockchain and its real possibilities.’
‘A technology that can massively improve the efficiency and transparency of everything we do has been taken over by a craze of speculation around cryptocurrency. We are letting this happen and real opportunities for growth are being missed.’
While a more entrepreneurially friendly environment would be helpful. Holles de Peyer says for true growth blockchain technology must work within legal structures and enterprises.
The role of blockchain in reviving the economy
Citing the original Bitcoin white paper, Holles de Peyer noted that Bitcoin was built as a digital cash system. It is a computation and communication protocol, a distributed database which is constantly updated and cannot be manipulated and a single source of truth, he said.
‘Essentially it allows us to solve some of the fundamental problems of the internet including the lack of an inherent payment system, an in-built identity layer, the problem with end-to-end communication and the ability to manage value.’
He added that until now it has never been possible to transfer actual value over the Internet, which is where blockchain comes in.
‘In a way what blockchain does is mimic the real world. It treats each digital document just the same as its paper equivalent which you actually have to give to someone. If I send it to someone then I no longer have access to it. This is quite a feat of human ingenuity if you think about it.’
Working within a legal system with blockchain
Holles de Peyer noted that blockchain must work within a legal framework to function successfully.
‘If we manage to connect all these parts and use them properly, those unique digital objects can be unique legal tokens. It doesn’t matter if it’s fungible or non-fungible, if it’s a legal token it has a legal structure.’
“These unique digital objects with a legal structure can represent anything we want in the world. It could be a product, it could be a service or an object of any kind. But suddenly that thing becomes smart, we can manage it digitally on a computer.”
Holles de Peyer said that this is ultimately the future of blockchain – the tokenisation of the world. This will ultimately make economies smarter, more manageable, more sustainable and able to recover their growth paths.
“Eventually, the whole of the world’s economy is going to be tokenised – it doesn’t make sense for it not to be. We are all going to be using digital dollars, digital euros and taxes will be paid automatically.”