PBoC Director Bullish On Blockchain, But Sees Potential In More Centralization

"Once a problem occurs, especially a security hole, it will be very deadly."

In a multi-center system such as a coalition chain, upgrading the bottom of the blockchain by shutting down the system, or emergency intervention, rolling back data, etc., are available means when necessary. These methods help to control risks and correct mistakes. For regular code upgrades, controllable intelligent contract replacement is achieved by separating code and data, and combining multi-layer smart contract structures."

Qian references the DAO hack of 2016, when around $60 mln in Ethereum was stolen, as highlighting how when problems arise, they "Cannot be repaired by shutting down the system and centralizing upgrades as a centralized system does." The lack of centralized governance mechanisms also means that "Problems can only be resolved through soft forks or hard forks, which will eventually lead to confusion and division."

In the future, Qian sees "Various blockchain systems hav[ing] different levels of decentralization to meet the specific needs of different scenarios."

Solutions to the problems that Qian has identified in the current state of Blockchain technology are a potential addition of the verification methods used by military control systems or chip design, as well as "Avoid[ing] human errors as much as possible through mathematical proof."

"The blockchain should not be owned by anyone, let alone a small fraction of the super-rich. Therefore, some people are opposed to the governance of the chain."

Cointelegraph recently reported that the election of a pro-market economist to head the PBoC could have a positive impact on the Chinese cryptocurrency sector.

In early March, the now-former head of the PBoC said that Blockchain technology should not "Spread too rapidly" in order to prevent a negative effect on financial stability.

The debate over whether Blockchain and Bitcoin as entities must always go together was raised earlier this month by the CEO of Lightning Labs, who challenged the "Blockchain over Bitcoin" narrative.

The separation of the two concepts has been practiced by central banks like the Reserve Bank of India, which promotes Blockchain innovation while saying that cryptocurrencies can destabilize the traditional financial system.