CEO Of Xunlei Technology Explains How Blockchain Can Grow Without Cryptocurrencies
Since the beginning of the year, Bitcoin has lost around 80% of its value. However, blockchain technology projects and companies seem to continue their work amid this bear market that is affecting virtual currencies.
At the Fortune's Global Tech Forum in Guangzhou, Lei Chen, CEO of Xunlei Technology, talked about blockchain technology and how it would be possible for blockchain technology to expand without cryptocurrencies.
Xunlei Technology is a digital services company that is a blockchain pioneer in the market. At the same time, the company has $ 30 billion market capitalization.
According to Chen, there are three things that must happen. To summarize her position, she says that there are three numbers that are important to memorize: one-million, one and ten million.
About the first condition she said:
"First, I believe there must be a blockchain architecture that can sustain one-million transactions per second and can have a response time within seconds."
Chen explains that the blockchain platform that Xunlei created is able to fulfill this requirement. In order to run in the fast way, it is necessary to have the necessary bandwidth. This is why Xunlei Tech accumulated the necessary bandwidth leasing unutilized processing power from personal computers.
Jennifer Zhu Scott, the founding principal of Radian Partners, explained that this distribution model has already been deployed in other industries such as gaming. Blockchain technology has the power to revolutionize different industries and economic sectors all over the world, including the gaming industry.
For example, back in December 2017, when CryptoKitties was launched, the Ethereum network completely crashed. Several collectible cats were traded at all times on the Ethereum platform. Some people were paying thousands of dollars for some cats.
The same can happen with data ownership. The models that we know today related to the data will also change. Chen explained that in ten years in the future, we might be able to see the user as the intellectual property.
The second prerequisite that Chen mentioned is related to the fact that there must be one and well thought-out regulatory framework developed in a proactive way.
Finally, Chen said that it is still necessary to see a decentralized application that surpasses ten-million users.
"If there is a ten-million user application of blockchain today, we would be seeing the entire technology in a completely different light."
However, we are doing these numbers in the industry. Nowadays decentralized applications and blockchain apps might have a few hundred or thousand users. Additionally, the regulatory framework is different in each of the countries where the technology is spreading. Moreover, current blockchain networks should improve their scaling systems if they want to handle millions of transactions on their networks.