Bitcoin, Crypto currency, Blockchain

Report of the world trade organization: Ripple, IOTA, Bitcoin & Ethereum are ground-breaking technologies

Report of the world trade organization: Ripple, IOTA, Bitcoin & Ethereum are ground-breaking technologies

Home News report by the world trade organization: Ripple, IOTA, Bitcoin & Ethereum are ground-breaking technologies

Of
Marcus Misiak –
08.10.2018

In their new 236-page report, “World Trade Report 2018 – The future of world trade: How digital technologies are transforming global commerce,” mentioned the world trade organisation, several crypto-currencies. Ripple, IOTA, Bitcoin and Ethereum are presented in the report as ground-breaking technologies. The entire Blockchain technology and, in particular, Ripple can have, according to the world trade organization, the dramatic and disruptive effects on the global financial system.

In the report, Ripple is highlighted as a company, which is the way banks move money around the world, could radically change. Although the crypto-currency, XRP is not expressly mentioned, in this context, one can suggest, however, that the “bridge currency” XRP is meant to be:

Another U.S. company, Ripple, has the right to bypass the correspondence model of banks through its Distributed Ledger platform. It gives the banks the possibility of obtaining funds within seconds and almost zero costs in different currencies, convert to correspondent banks leave. The company has licenses with more than 100 banks and financial institutions, but it seems that so far only a limited number of large operations has taken place.

The report highlights that there are in addition to the Blockchain, further issued Ledger technologies that are promising. In particular, describes the global trade organization IOTA:

Blockchain is the most popular Distributed leather technology (DLT), but more and more other models are developed, which are distributed as Blockchain and the various cryptographic techniques, which remove from the concept of “blocks” – or even of the concepts of “blocks” and “chain”. An example of this is IOTA, a crypto currency that was developed for Machine-to-Machine communication, in any transaction with the two previous transactions as part of the validation process is linked to form a “Tangle” instead of a chain.

The report also covers Bitcoin and Ethereum, and notes that both crypto-currencies pioneers in their field. The world trade organisation, but also highlights the future challenges that remain, so that you can stand against the Visa.

The real potential of the Blockchain remains to be seen. In fact, the use of the Blockchain depends currently from various challenges. First, the scalability of the main public block chains due to the predetermined block size and the energy required for the power supply to the networks is limited. The Bitcoin platform, for example, handles on average about seven transactions per second, the Ethereum Blockchain twice as many, while Visa can process 2,000 transactions per second, with peak values of 56,000 transactions per second.

Secondly, existing Blockchain networks and platforms have their own technical peculiarities, and not talk “to each other”. Companies such as the International Organization for Standardization (ISO) and the International Chamber of Commerce (ICC) have begun to deal with issues of interoperability and standardization, and a variety of technical solutions are developed by IT developers. The solution to the “Digital Island problem” is, however, likely take some time.

Finally, the use of the Blockchain technology raises a number of legal issues, ranging from the legal status of the Blockchain transactions (whether or not Blockchain-transactions are legally recognized), the applicable law to questions of liability, not to mention possible compatibility issues with existing regulations.

The full report you can read here.

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