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Blockchain is The Future of Finance and Governance, Says Cardano Founder Charles Hoskinson
- Hoskinson paralleled the U.S.’s 19th-century rise to financial prominence with today’s blockchain potential, criticising U.S. policy.
- He underscored the transformative power of blockchain to forge substantial industries and reframe governance.
- Hoskinson predicts blockchain will revolutionise financial compliance and redefining governance and operations by building decentralised structures.
The Fading Influence of The U.S.
Speaking in Dubai, Cardano founder Charles Hoskinson drew on the United States of the 1870s, which was regarded as an unreliable and rebellious nation, especially in comparison to the British Empire, which was the dominant global power.
Despite the challenges faced, within 30 years, the U.S. overcame its humble reputation and became a global financial leader, thanks in part to its immigrant population. Hoskinson reflected on this historical shift, connecting it to the blockchain industry and the situation in the United States compared to that in the Middle East.
He criticised the U.S. government’s antagonistic approach to the industry, noting smarter nations are embracing the potential of blockchain, reminiscent of how the U.S. took advantage of British complacency in the 19th century. The Cardano (ADA) founder highlighted a positive experience in Abu Dhabi, where officials are open to understanding and quickly adapting to blockchain innovations.
Blockchain Builds Future Jobs
Hoskinson emphasised the goal of building enduring industries, such as blockchain, that will create jobs for future generations.
Highlighting the importance of exponential technologies that a small group can develop into large, valuable ecosystems, he stated,
Like with Ethereum, it was eight of us, not very big, Cardano, two of us not very big, and create ecosystems that now span over 100 million people. In less than six years and at the all-time high, $500 billion of value ecosystems that talk at their core about reimagining how governance should work.
Charles Hoskinson Redefining Governance and Finance
He added that the industry is tasked with rethinking governance and organisational structures in a decentralised context, which is challenging due to the lack of centralised control but necessary to address as they shape the future of how people and economies interact and operate.
Hoskinson said that the innovative approaches in the blockchain industry will redefine microfinance, remittances, and transnational operations. There is a shift from relying on laws to embedding structures within code that inherently prevent fraud. The industry is pioneering in digital identity, developing the Self Sovereign Identity and decentralised identifier standards that enable proof of identity without revealing unnecessary personal information, using technologies like zero-knowledge proofs.
It’s inventing ways to prove things without revealing things.
Charles Hoskinson Enabling Freedom and Equality
The Ethereum (ETH) co-founder pictures a future where blockchain technology integrates into the financial industry, transforming compliance and regulation. He talked about how incorporating regulations into software as code could automate compliance, allowing businesses to operate across various jurisdictions without constant legal oversight.
Could you imagine if all the regulations were in code, their libraries, their APIs. You could just call them to be in full compliance.
Charles Hoskinson Finally, he suggested that blockchain could also democratise artificial intelligence (AI), preventing a monopoly by a handful of companies and allowing equitable access to data and AI tools. Hoskinson believes that a decentralised approach to technology governance aligns with the cryptocurrency industry’s ethos of freedom and equality, aiming to provide fair access to services and resources for everyone.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
