Yahoo Co-founder: Blockchain & Crypto Platforms Need to Establish 'Trust' to Succeed

Yahoo co-founder Jerry Yang recently said that digital currencies and their underlying blockchain technology can only survive in the long-term if the crypto community builds a solid foundation of trust around them.

Yang’s comments about cryptoassets and distributed ledger technology (DLT) came during a speech he delivered at the recent Nikkei Innovation Asia Forum, held in Singapore. Notably, the tech entrepreneur

believes

blockchain-based platforms have the potential to disrupt many different traditional industries.

 

Specifically, Yang thinks blockchain-enabled solutions will play a key role in transforming the existing banking and finance sector. However, he emphasized that this can only happen if users are able to trust crypto and blockchain-based products.

"With Trust, Huge Opportunities" Will Come

Yang added that the emerging crypto industry could greatly benefit the world’s traditional trading platforms and streamline banking processes. The experienced Taiwanese-American businessman and former Alibaba Group board member noted that businesses could benefit from using blockchain-based systems for transactions.

Similar to what many other technology experts have said, Yang thinks DLT-enabled financial platforms could allow for greater transparency and efficiency. Commenting on why trust is important, the Stanford University graduate remarked:

For applications to get implemented successfully, trust must first be built. With trust, huge opportunities for the mass adoptions of blockchain will be realized.

As CryptoGlobe reported recently, giant US-based companies including IBM and Ford are planning to develop a blockchain-powered solution to ensure that cobalt is ethically sourced from the Democratic Republic of the Congo (DRC).

Ethically Sourcing Cobalt With Blockchain

Through a partnership with tech giant IBM and automobile manufacturer, Ford, two local firms LG Chem and Huayou Cobalt have started working on a DLT-based project that will ethically source cobalt and other valuable minerals. Notably, most of the world’s cobalt is mined in the DRC, one of the least developed countries in the world.

There have been reports of the use of child labor in the DRC for extracting cobalt, which has led many consumers and business owners to inquire about whether minerals such as cobalt are being sourced ethically. The pilot blockchain project is intended to help provide verification that the companies mining cobalt are not exploiting children or engaging in other types of abusive practices.

As reported on CryptoGlobe, blockchain developers are still being offered generous salaries despite the prolonged crypto bear market. The median salary for blockchain developers is of about $140,000 per year. In 2018, there was reportedly more than 300% in DLT-related jobs.

Silvergate Bank to Offer Institutional Crypto-Backed Loans

Neil Dennis

Silvergate Bank, one of thefinancial service providers of choice for the cryptoasset industry, has said it plans to add crypto-lending to its array of services.

The California-based company, which provides commercial banking and payments services to many of the top crypto-related firms such as Bitstamp and Coinbase, said in an updated IPO filing it would offer institutional clients loans in fiat currency collateralized with cryptoassets. 

This service would be included in its Silvergate Exchange Network - a payment system designed for its crypto exchange clients. The company said in the prospectus update:

Offering lines of credit would improve liquidity within the order book of our exchange clients, enabling additional trading on their platforms, potentially reducing pricing arbitrage across exchanges and improving the stability of digital currencies.

Risk Returns

Silvergate said the service would earn it "attractive risk adjusted returns" because even if the price of cryptoassets being held as collateral should fall, it can sell the assets on one of its client exchanges.

The bank has been rapidly expanding its roster of crypto-related clients: when it updated its IPO prospectus on December 31 it had 542 crypto clients, compared with 655 as of June 30.