First massive blockchain adoptions have roots in cryptoanarchism, with its desire to keep governments away. Since then distributed ledger technologies have taken over the corporate mainstream. Now blockchain is being adopted by governmental agencies. Central banks talk about blockchain based digital currencies. Digital Asset Live Editor-in-Chief met with Dr Zurab Ashvil, Founder and CEO of L3COS, the world’s first blockchain designed to be regulated.
Q1: You have recently suggested nothing less than a blockchain based operating system to the Bank of England. What is the main difference between traditional and blockchain based operating systems?
A1: Existing digital systems for managing an economy’s transactions are limited due to outdated real world back-office procedures and the need for human oversight in relation to compliance. L3COS’s unique three-layer consensus blockchain platform has the relevant laws and protocols built-in, allowing efficient and compliant verification to be done automatically, while also ensuring that illegal or fraudulent activity cannot take place. This eliminates the need for expensive and slow traditional compliance processes and accelerates the speed at which government, companies and individuals can transact with each other.
Q2: What new features will a user be able to enjoy in a blockchain based operating system?
A2: Users will be able to enjoy the benefits of speed of processing and the verification of transactions in a transparent, immutable and secure manner. It will dramatically cut compliance and oversight costs but also bring greater confidence and transparency. It will have the added benefit of cutting black market transactions and fraud.
Q3: Why do you think the Bank of England needs a blockchain based operating system.
A3: Firstly, the digitalization of the economy is inevitable, the only reason why it has not been done previously is that the technology did not exist; with L3COS it now does. In the Bank of England’s consultation paper, the Bank set out the seven opportunities that a digital currency platform will offer them. L3COS’s platform addresses all of these opportunities, being: Supporting a resilient payments landscape, Avoiding the risks of new forms of private money creation, Supporting competition, efficiency and innovation in payments, Meeting future payment needs in a digital economy, Improving the availability and usability of central bank money, Addressing the consequences of a decline in cash, and as a building block for better cross-border payments.
Q4: L3COS positions itself as the world’s only blockchain for regulated digitalization of economies. Please elaborate on it. What makes your blockchain special?
A4: Traditional blockchain technology uses only public consensus to ensure the validity of transactions. For the first time, L3COS’s unique three-level consensus platform is specifically designed to be overseen and regulated by governments with the creation of L3COS blocks also underwritten by sovereign bond issuance, ensuring the full and immediate transparency of sovereign issuance. This blockchain technology is immutable, fully auditable, traceable, and transparent, making fraud, money laundering or other black-market financing impossible. L3COS brings the benefits of blockchain to the wider economy, corporations and individuals for the first time.
Q5: How and where do you see future applications of L3COS blockchain? Are you currently deploying your blockchain for any particular projects?
A5: The digitalization of the economy is inevitable, L3COS makes it possible. Blockchain is now a tried and tested technology with over 40% of the S&P 500 using it already in their systems and process management. L3COS is a technology framework that is allowing governments to build a fully regulated infrastructure based on blockchain for the first time. This framework empowers sovereigns to implement their own digital economies, with their own laws and processes on an immutable, fully auditable, traceable, and transparent framework, making fraud, money laundering or other black-market financing impossible.
Q6: In April, I took part in an online workshop by the Bank of England on blockchain adoptions for a digital pound. Do you believe in digital currencies to be issued by central banks? How do you assess the chances of a digital pound? USD? Euro?
A6: L3COS is enabling digitalisation of economies for the first time – an essential and inevitable step in the globalized world. The Bank of England is one of several sovereign authorities, including the US Treasury, which have begun the process of investigating the application of regulated blockchain technologies. The Bank of England’s tender is a clear and positive commitment to considering a Central Bank Digital Currency.