In a panel discussion titled “The Institutionalization of Blockchain,” experts gathered to delve into the topics of blockchain decentralization, the future of Ethereum, and self-regulating technologies. Moderated by Anndy Lian, author of the book “NFT from Zero to Hero,” the panelists shared their insights on these critical subjects. Panelists included Anuj Shankar, CEO (Luganodes); Igneus Terrenus, Head of Communications and Business Development (Mantle Network by BitDAO); Ken Nizam, Founder & CEO (AsiaTokenFund Group); and Zhuling Chen, CEO (RockX).
The panel discussion commenced with a focus on how institutional investors can effectively manage risks when participating in blockchain staking. Ken emphasized the significance of conducting due diligence on the network’s security and governance. He stressed the importance of understanding the team behind the network and its track record in terms of security and resilience. Additionally, Ken highlighted the need for diversification, where institutions choose multiple staking providers to mitigate overall risk. Regulatory compliance was also deemed crucial, with staying updated on the latest regulations being a recommended practice.
Zhuling Chen added that institutional investors must comprehend the fundamental risks associated with crypto staking. These risks include crypto market volatility, network security, and platform safety. He mentioned the potential benefits of employing custodian services as an extra layer of protection, especially for those new to the crypto space. Insurance coverage was also suggested as a means to safeguard assets from hacks or loss.
Igneous Terraneans reiterated the notion that staking is an active contribution to the network’s security. It involves working to secure the network rather than merely earning passive income. Trust in the network’s robustness and team, as well as the proper management of rewards and counterparty risks, were highlighted as critical considerations. Diversification was mentioned as a prudent strategy, particularly for institutional investors with substantial assets.
The conversation then shifted towards zero trust and zero knowledge mechanisms and their applicability to institutional investors. Anndy Lian pointed out that staking is comparable to mining in the proof-of-work world, where physical machines secure the network. Staking, on the other hand, represents a virtual mining process, utilizing tokens and servers to safeguard the network. It was noted that institutions, especially those familiar with mining Bitcoin, may find it easier to understand staking as a form of fixed income derived from the network itself.
The panelists acknowledged that zero trust and zero knowledge principles lie at the core of blockchain technology, offering decentralized and trustless systems. While these mechanisms are not infallible, they are steadily improving, and teams are actively building on them. The power shift from centralized authorities to decentralized systems aligned with the ethos of blockchain. Institutions were encouraged to participate in these systems, contributing to a more distributed and secure network.
To facilitate broader institutional participation, the panelists stressed the need for simplicity in the staking process. Anuj from Luganotes highlighted the technical complexities involved in setting up and maintaining validators. While staking presents significant security considerations, it is crucial to streamline the process for institutional validators, especially newcomers to the space. Simplification would aid mass adoption and allow individuals without extensive technical knowledge to participate.
The panel discussion shed light on essential considerations for institutional investors. Risk management, due diligence, diversification, regulatory compliance, and custodian services were highlighted as crucial elements in managing risks effectively. The panelists emphasized the active role of staking in securing the network and discussed the importance of zero trust and zero knowledge mechanisms. Ultimately, the experts agreed that simplicity and security should be prioritized to encourage broader institutional participation in staking and contribute to the growth and decentralization of blockchain networks.
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Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.