Speaking to Bloomberg on their show “What’d You Miss?” Gavin Woods, co-founder of Ethereum, gave his views on what is in store for ICOs and the potential solutions for scaling issues that still haunt cryptocurrencies.
In a short 6-minute conversation with Bloomberg host Joe Weisenthal, Gavin Woods took questions from the host on the market downturn, the struggles for ICOs, and whether blockchain technologies will ever solve the long-debated issue of scalability.
Woods first spoke about the recent market downturn for cryptocurrencies in general and stated that it is actually a good thing on the production and development side of things. Such a downtrend filters those that are only here for price speculation out, leaving only the individuals who truly believe in the world-changing promise of blockchain and decentralized technologies in.
Or in his words “when a fairly substantial interest cycle is going, we find that there’s quite a lot of noise and it’s not always so easy to tell between the people that just want to be in the space and the people that are truly down for the technology.”
“ICOs Still Have a While to Run”
The topic then turned to ICOs. The Bloomberg host remarked that current interest in initial coin offerings has essentially collapsed. Weisenthal then continued by asking Wood what he believed is the key to renew any possible interest in the future. Wood stated that “ICO’s still have a while to run” and went on to note that he believes that ICO’s will have to evolve going forward.
A large number of ICOs are built on top of the Ethereum blockchain, and despite the market downturn as well as an obvious lack of interest in ICOs in 2018, there has still been some major fundraising achieved by various high-profile ICOs this year. This includes EOS’s ICO and the Telegram private sale which brought in $4 billion and $1.7 billion respectively.
“Starting to See the First Sign of Innovation” With Regards to Scaling Issues
As the conversation continued, the topic changed to the scaling issues that have been dogging the cryptocurrency industry over the years. Ethereum especially has been hampered by scalability as the much-publicized CryptoKitties fiasco proved.
Wood remarked that he sees plenty of potential solutions to this issue beginning to show some promise. On Ethereum he said, “Ethereum is trying to push forward in the scaling solution space with this notion of sharding, which is something that is very common in databases where basically you can split up the blockchain in different bits.”
He also touched on his own company Parity Technologies, which has created a network called Polkadot, which holds a focus on scalability solutions.
Wood explained that the shards on the Polkadot network are all domain-specific. “They can all sort of process together, so there’s no need to process everything in line as with traditional blockchain designs like Ethereum and Bitcoin.”
Although Polkadot is not the first ICO to focus on scalability, with Wood’s experience backing the project, this is a promising sign. With Quarkchain and Fantom also ICOs introducing new ways to deal with scalability, there could possibly be a solution just around the corner. In turn, with scalability issues firmly behind us, interest in ICOs and investment should regain their pre-Q1 2018 status.