Vitalik Buterin, the founder of Ethereum arrived in Seoul to emphasize the need for a more proactive stance on blockchain and cryptocurrency regulation in Korea.
This meeting was held a few days before Deconomy. The round-table conference was held by the National Assembly’s 4th Industrial Revolution Forum and ZDNet Korea. 500v2 CEO Jimmy Kim and Foresting CEO Daniel Eom were also at the roundtable to listen and learn from one of the most respected minds when it comes to blockchain technologies.
Buterin stressed the importance of fostering the young and passionate generation in Korea so they can access blockchain technologies and be active in the developer community.
Buterin talked about the great potential for society to change from blockchain’s underlying technology.
“In the next 1-3 years, I think that the block chain technology will be dramatically improved, At that time, the level of service based on the block chain will also imrove significantly.”
In 3 years, Buterin feels that more and more blockchain technologies will be utilized. Therefore, projects that can be said to be successful are expected to emerge.
ICOs in Korea
In regards to Korea, Buterin felt that ICOs vary from country to country. Some countries prohibit ICOs, while others treat it as securities or Fintech. He mentioned that he didn’t think it was right to put a cipher or blockchain into the current regulatory system. For example, if coins are treated as securities, the regulations become too severe.
There are also cases where utility tokens are created to avoid being treated as securities, which can also lead to even more severe restrictions. He stressed the importance of setting clear standards for ICOs. Efforts should be made to create a transparent system to ensure investors know where they are investing.
What is DAICO?
Buterin: DAICO is a combination of decentralized distributed organization (DAO) and cryptographic disclosure (ICO). It means the decentralized distributed organization for ICO.
The ICO goes directly to the project team with the funds raised. But DAICO can control the funds through smart contracts. It is a way of voting directly through how investors will distribute the money raised.
ICO is fundamentally structured (although funding for decentralized projects). This is because the investment is delivered directly to the project team and is executed according to their intentions.
Using the DAICO method, investors can set a period of time to provide funds, rather than giving all the funds to the project team at once. Indeed, investors can transfer funds while reviewing the project team’s capabilities.
The Ethereum Foundation
Buterin went on to talk about the Ethereum Foundation which is looking to actively engage with the community to foster blockchain developers. He hopes that many Korean developers will have the opportunity to understand the blockchain and experience its development.
“Currently, block chains are mainly used for financial services such as overseas remittances. However, if the blockchain limit is overcome within one to three years, I think there will be a use case. “
Buterin also emphasized that overcoming technical limitations is “the current block-chain industry challenge.”
Currently, his focus is on improving the transaction processing performance of the blockchain. The blockchain is designed to allow all nodes participating in the network to record all transactions. This allows verification through distributed nodes even if the data of one node is modulated.
However, due to this structure, the processing capability of the whole network cannot be limited to single node processing capability. No matter how many computers you connect, you can not exceed the processing efficiency of a single node. If the user suddenly increases, the transaction cannot be efficiently processed.
One of the technologies being studied by Buterin to solve this problem is the ‘plasma’ project. It creates a side chain, processes the data, and passes only the optimized data to the main chain. This can reduce transaction fees and improve network throughput.
Recently, Plasma Cache, an upgraded version of the plasma, was also released.