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'The true potential of blockchain enabled solutions lies in a new structure of agreement.' - Ido Sadeh Man, Saga

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Ido Sadeh Man, Founder & Foundation Council President of Saga is joining Blockchain Summit Hong Kong at Cyberport 3 on the 28th February 2019 as a leading speaker in the Blockchain Industry

 Ido, who is taking part in the panel What Will be the Impact of Blockchain on the Financial Industry’ took the time to complete the speaker Q&A for Blockchain Summit:

 

1. How are you using or planning to use Blockchain in your organisation?

The Saga Foundation designed and implemented worldwide money - to be used for global transactions while the national money we all know regains its purpose to support national commerce. The initiative of creating a currency cannot be left to private corporations who can decide of adding or eliminating money by a simple board decision. We have found blockchain technology helpful in implementing a transparent and decentralized monetary algorithm, very much inspired by traditional central banking. The control of the supply of money, a core issue to deal with when envisaging a new currency, is assured by a smart contract. With all that said, we do not believe blockchain alone can support this kind of effort, and thus, far from being maximalists - we are using it for what it is - a technological tool and not a goal for and of itself.

 

 

2. What benefits do you think Blockchain will bring to your industry?

We consider blockchain to have a powerful advantage in the execution of agreements between parties, without having to rely on a single trusted governance mechanism to enforce the agreement - in the case of the FinTech industry this holds true for many use cases - from settlement through insurance contracts and in Saga’s case- to power our monetary model. At the same time, when it comes to updating agreements, native blockchain governance solutions are proven to be inefficient to say the least, causing splits and forks which result in tremendous loss of value. We therefore believe that for blockchain to play a significant role in our industry, as in many others, it must be used as a complementary tool for the execution of agreed-upon transactional logic. Decentralization, the migration of an entire solution towards blockchain cannot and should not be a sustainable goal.

 

 

3. What impact do you expect Blockchain to have on your business?

Blockchain is definitely an enabling technology for us. If only because previous implementations have proven that we can leverage it to create scalable non-geographical communities who are able to exchange value. I believe we are witnessing a de-capitalization of Blockchain - understanding that it is one piece in a very large puzzle of solutions to confront globalization and that eventually - the proof is in the pudding - blockchain being only an ingredient Facebook and Airbnb are reliant on many such technologies of scalable storage, data serving, and processing. We however do not consider them to be a Linux app or a Cassandra app but rather a social network. We care for the value they bring and not by the technology powering this value. The same should go for blockchain.

 

 

4. How important to do you consider collaboration on Blockchain to be within industries?

To disappear behind the stage - leaving it to the defendable use cases. To become the TCP/IP and HTTP of the world wide web. The mainstream shouldn’t care.

 

  

5. How should Blockchain be regulated?

At the risk of repeating myself, I do not think technologies should be regulated but rather solutions. If four banks are using blockchain to settle accounts between them - this should not be regulated. If security tokens are created they should. This has nothing to do with blockchain as a technology.

 

 

6. What are the challenges of taking Blockchain from proof of concept to live deployment?

The true potential of blockchain enabled solutions lies in a new structure of agreement. Let’s take the phenomenon of ICOs as an example. A true promise of democratization of funding and investment crushed in the face of lack of checks and balances to make sure that power, information and accountability are properly apportioned. Change is inherently risk carrying. The big challenge is not to hide behind the excitement of innovation when we want to change the fundamental of our social contracts, but rather address the big elephants in the room: how do we address the issues that national regulators were built to address? Discharging their need and overlooking their function is not enough (as a short glance at coin market cap would quickly show). The good news is that with the decay of the hype and enthusiasm of green markets, players are demanded to find real use cases and utility for their products - thus alleviating the biggest market barrier of not looking the reality in the eye.