With Bitcoin breaking into the mainstream space, the latest WhatBitcoinDid interview featured a discussion with Microsoft’s Daniel Buchner to identify the company’s outlook towards blockchain, open source, and its mass adoption.
Buchner detailed Microsoft’s vision to decentralize user identity and claimed that “open public blockchains” are the most viable options to achieve the same. He also stated that “decentralized money and decentralized identity go hand-in-hand in solving problems,” but only if implemented without imposing undue weight on the blockchain.
Moreover, Buchner also explained how market-type services that require some kind of centralized entity could gather user data through voluntary disclosure. In fact, Microsoft’s Project Ion would not display any personal information, ensuring no compromise on sensitive information, he added.
The discussion also uncovered Microsoft’s future plans of “implementing new cryptographic schemes for recovering secrets.” Supporting this move, Buchner said,
“Privacy is important so but at the same time it has to be super easy. Decentralizing entities is your choice, and we just want to make sure that people have that choice.”
While further discussing Microsoft’s intention to enable total decentralization, he also added that the company’s sole motive was to reduce the overall complexity of every individual involved in it. It is clear that Microsoft has not yet found any other crypto-related applications, but is actively looking for places to find “a good fit” for.
While concluding the interview, Buchner said that he does not care about miner’s fee until the whole layer has completed its development and execution. Further, Microsoft expects the rise of an ecosystem of companies that will leverage Microsoft’s technology as the base to enable further decentralization.
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ErisX goes all hands on deck to launch a Bitcoin Futures market
ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.
ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.
The CSO explained the benefit of this, stating,
“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “
Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,
“… so there is some efficiency in terms of managing collateral, if you don’t have assets on multiple platforms, it can all be in our clearinghouse.”
Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,
“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”
Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.
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