[THE INVESTOR] Matthew Spoke, the CEO of blockchain developer Nuco, predicts that conventional tech companies like Samsung and Google will have to make a life-or-death decision in the face of the emergence of different economic standards created by blockchain.
“Big companies like Samsung and Google are protected by enormous infrastructure costs and they take advantage of huge economies of scale to provide their services and products to the market inexpensively,” Spoke told The Investor in an interview on the sidelines of Deconomy, a two-day blockchain forum held in Seoul. “It is like a legitimate existential crisis for a lot of companies when the economy as such is reorganized.”
Matthew Spoke, the CEO of blockchain developer Nuco
As decentralized networks go mainstream, small businesses and individuals can actually build competitive solutions for a huge company without spending billions of dollars on infrastructure, meaning big corporations will gradually lose their edge, according to Spoke.
The adoption of blockchain could also undermine the structure of corporate organizations over time, he noted. More and more people in the future, for example, will be able to sustain themselves economically like freelancers, without joining corporate organizations. Instead, they can work wherever and whenever they want, just as long as they deliver results.
Nuco, the company behind Aion cryptocurrency, is developing a solution that connects different types of blockchain networks.
Spoke used to work for accounting firm Deloitte before he cofounded Enterprise Ethereum Alliance, one of the biggest blockchain organizations in the world that has 500 enterprises, startups and academic institutions, including IBM, Cisco, Intel and Samsung SDS as members.
Although recently blockchain networks have continued to sprout up, they are hardly compatible with each other, falling short of fulfilling the initial goal -- building a decentralized network that offers every participant easy access to data.
For-profit companies are hesitant in utilizing public blockchain networks fearing the leakage of business information to competitors while trying to build their own exclusive blockchain models.
Most public blockchain networks, on the other hand, have rarely proven practical use cases due to limitations such as low transaction speed, scalability and high cost.
Spoke believes the Aion solution will serve as an operating system that will address a widening gap between public and private blockchain networks.
By Kim Young-won (email@example.com)