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.

Binance CEO Sues VC Firm Sequoia for Reputational Damages

Francisco Memoria

Changpeng Zhao, the CEO of leading cryptocurrency exchange binance, has reportedly sued well-reputed venture capital firm Sequoia over reputational damages allegedly caused by a lawsuit the VC firm filed against Binance that was dismissed.

According to a filing submitted to the High Court in Hong Kong that was obtained by CoinDesk, Changpeng Zhao, referred to as CZ, claims Sequoia Capital China, a unit of Sequoia, significantly damaged his reputation and is looking for compensation.

This, according to the CEO, prevented him from raising money at a proper valuation for Binance. Sequoia reportedly damaged his reputation through a lawsuit filed in April of last year over a funding deal that went awry.

A hearing for the case is set to take place on June 25 between CZ and SCC Venture VI, a special purpose vehicle of Sequoia Capital China. An inquiry to determine whether Zhao “sustained any and what damages” is being demanded, over an injunction order Sequoia obtained in late 2017 that reportedly prevented CZ from raising funds in March of 2018.

Sequoia’s initial lawsuit was dismissed by the Hong Kong High Court, with the VC firm having to repay Binance the legal fees required for its legal representative.

In the filing, the CEO of Binance stated:

The injunction order has caused loss to me for which I am entitled to reasonable compensation by Sequoia. In particular, I have suffered i) a loss of chance to raise capital through successive rounds of financing at increasing high valuations; and ii) damage to my reputation.

Sequoia is notably seen as one of the most well-reputed venture capital firms focusing on tech startups, and available data shows it operates 22 funds across the globe and raised $15.3 billion so far.

Meanwhile, Binance has been going through a rough few weeks. The exchange was hacked for 7,000 BTC earlier this month, and considered rolling back the Bitcoin blockchain to recover the stolen funds, a move that saw him be heavily criticized on social media.

Binance recently published an extensive blog post recapping the incident that detailed hackers managed to control a number of Binance user accounts and structured large withdrawals from these. More recently, various users complained they lost funds after experiencing lag on the trading platform.