Pseudonymity feature has done well for the crypto industry in the beginning, but for further development, regulation is a must. Yet, the majority of over 10,000 cryptocurrencies are irregulatable because of a false notion that regulation will hamper the growth of the cryptocurrency industry globally. The approach of seeing regulation as an enemy of crypto space won’t do any good anymore. It’s time cryptocurrencies and the blockchain industry as a whole began accepting wholeheartedly that regulation will bring far more benefits than drawbacks.
In fact, as per a Foley & Lardner survey, 84% of respondents say that the government should regulate the initial offering of cryptocurrencies, similar to the initial stock offering. Further, 68% of respondents say that they want regulations on the purchase of cryptocurrencies, with 55% vouching for regulating crypto goods and services.
The survey further disclosed what respondents feel about the cryptocurrency industry. 72% of respondents believe that the companies in the crypto space do not understand much of the state and federal rules applicable to the financial industry. Therefore, we need blockchain and cryptocurrencies that are both regulatable and transparent. That is where Concordium will make a difference. Concordium blockchain & GTU, its cryptocurrency, are debuting today, June 9. Concordium offers governance and transparency to its users without sacrificing the privacy needs of a user.
Speaking on the current landscape of the blockchain industry, Concordium’s chairman, Lars Seier Christensen, said:
“The time has come for the blockchain industry to respect the general rules of society. With the launch of Concordium Blockchain, the era of anonymity, opacity, and lack of transparency has come to an end.”
Founded in 2018 by a non-profit Swiss foundation, Concordium has raised USD 41m from its private and strategic sales early this year, valuing the company at $4.45 billion. Concordium also has strategic partnerships with some of the most reputed scientific institutions globally, like the Indian Institute of Science, ETH Zurich, the Concordium Blockchain Research center Aarhus, and Aarhus University.
Leveraging built-in user identification and Zero-Knowledge-Proofs technology to prioritize securing private data over anonymity, Concordium solves the issues prevalent in traditional blockchains. Using Concordium, users will be able to send encrypted payments to each other and recognize the counterparties involved in the transaction. Also, if required, regulatory authorities would be able to identify users involved in the transactions.
Concordium aims to meet the requirements of its users, developers, and regulators to rid the blockchain industry of shackles that are holding it back from realizing its true potential. While stressing the importance of trust in the crypto industry, Lone Fonss Schroder, Chief Executive of Concordium, said:
“This is the tool that global businesses have been waiting for. This industry needs to realize that without trust and acceptance there is nothing.”
Expanding further on the need for complying with global regulations, Ms Fonss Schroder added:
“Global business is rules-based. The sooner the blockchain and crypto industry wakes up to the need to play by the rules the sooner the full potential of blockchain will be realized.”
Concordium’s Mainnet Debut
Keeping in view the global regulations and need for governance, transparency, and privacy features, Concordium Blockchain has been in development mode for three long years to meet all the requirements. But finally, Concordium Blockchain is launching on mainnet on June 9. Thus, from June 9, developers can access the Concordium platform.
Privacy, but not Anonymity
Unlike the majority of the blockchain-based transactions, which are unidentifiable, all Concordium transactions are trackable and identifiable to their origin. This feature will lead to global regulators trusting the Concordium project, and the crypto industry as a whole. If demanded by government authorities, the identity of the person sending the transactions can be disclosed, but only when necessary.
The most prevalent fear that global regulators have about cryptocurrencies is their use in illegal activities, and various Statistical reports have confirmed the same fears. For instance, a report by Cryptocrime states that 70% of all cryptocurrency transactions in 2021 will be for illegal use. Bitcoin, the largest cryptocurrency by market cap, will be used in 50% of all such illegal activities. The rest of the top 5 cryptocurrencies will be used in 20% of these illegal uses.
Though the number of crypto users participating in illegal activities is smaller than the number of genuine crypto enthusiasts and traders, the good guys do get a bad rep because of the bad elements within the crypto industry. It’s causing damage to the crypto industry at a massive scale, as many users & potential businesses are shying away from joining the crypto bandwagon fearing a regulatory backlash against them.
Image by Gerd Altmann from Pixabay