Michael Novogratz, former hedge fund manager and founder of Galaxy Digital, spoke about the commercial scale applications on the EOS platform in an interview recently. He also remarked the state of institutional investors in the market currently and their participation through hedge funds.
Novogratz’s Galaxy Digital LP partnered with Block.one, the company behind EOSIO for a $325 million fund known as the EOSIO Ecosystem Fund earlier this year. When asked about EOS in an interview with TheStreet, he elaborated on EOS [EOS]’s consensus algorithm. The algorithm in question is known as delegated Proof of Stake, where a group of about twenty staking agents are in charge of producing the blocks.
Due to these twenty parties having a large amount of processing power, the EOS blockchain will be faster, stated Novogratz. Recently, reports emerged that EOS has hit a transaction speed of 2800 transactions per second. He said:
“And because it’s just twenty and those twenty have big computing power behind them, the EOS blockchain will be much, much, much faster than the other blockchains. It’s already doing 5,000 transactions a second. It should be doing 50,000 transactions per second in a few months.”
He spoke about EOS’s detractors saying it is not decentralized. Just last month, 21 block producers on the EOS platform unanimously decided to freeze seven EOS accounts that were suspected to be carrying stolen funds. This was followed by an outcry from the cryptocurrency community. Novogratz stated:
“EOS’s critics say it’s not decentralized enough and that’s a very fair debate, back and forth, that you can participate in…EOS is the first blockchain where commercial applications can be built and experimented with. Lots of people find that very appealing.”
Novogratz also recently spoke at the Blockchain Week in Korea last week, where he stated that “a herd of institutional investors” is heading towards the cryptocurrency market. He explained his statement, saying:
“I think institutional investors are slowly coming to the realization that blockchain will be Internet or Web 3.0 and they’ll want to participate just like they want to participate in the Web.”
He went on to say that the first step towards participating in the market is through hedge funds. Funds such as Sequoia Capital, Polychain Capital and Benchmark Capital are the current source of participation from institutional investors.
The second step, according to Novogratz, is the purchase of new coins from ICOs, which is already being conducted through venture capital investments. He also mentioned the involvement of notable venture capitalists such as SoftBank, SBI Holdings in Tokyo, and multiple funds in the Chinese space.
When speaking about the consumer, he stated that the user does not “care about the wiring behind it”. He stated:
“Like the television, you turn on a television and you watch it. I think the blockchain, on the architectural level, is an infrastructure that most people won’t bother with, once it’s running properly.”
Novogratz echoed the statement made by Cory Johnson, Chief Market Strategist at Ripple, who had earlier stated:
“There’s not a lot of B2C [Business to Consumer] activity, the consumers all they see is the trading in cryptos and digital assets but I don’t think they really see the technology behind it.”
Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!
Author: Anirudh VK
Image Credit: Unsplash