Blockchains Must Have Centralized Foundation: Chinese Regulator

2018/3/6 23:40:16

“[F]rom a technical point of view, the absolute decentralization of the blockchain is not valid because the blockchain itself is a software and the software must be centralized,” he said, according to a rough translation. “Therefore, how to build a decentralized system based on a centralized structure needs further study.”

 


From CCN, Mar 6, 2018

 

An official from one of China’s top financial regulatory agencies said that he believes blockchains function more effectively when they are built on a centralized system.

 

Zhang Ye, director of the China Securities Regulatory Commission’s (CSRC) information center, said on Sunday that the government should devote “great attention” to the development of blockchain technology.

 

However, Zhang — who made these comments at the “Two Sessions” conference in Beijing during an interview with state media outlet Securities Times — tempered his enthusiasm for this nascent technology by stating that more research needs to be devoted to building a decentralized blockchain on top of a centralized foundation.

 

“[F]rom a technical point of view, the absolute decentralization of the blockchain is not valid because the blockchain itself is a software and the software must be centralized,” he said, according to a rough translation. “Therefore, how to build a decentralized system based on a centralized structure needs further study.”

 

The regulatory official did acknowledge that some blockchain applications may require decentralization, but he said that these scenarios should be limited and he did not go into detail about what applications should and should not be centralized.

 

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https://www.ccn.com/blockchains-must-h ... dation-chinese-regulator/

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