After a market crash that wiped away more than $800 billion in value, Ethereum co-founder Gavin Wood said cryptocurrency investors need to be more aware of what is underpinning their purchases.
“I would hope that when people get involved in a community, ecosystem, or economy, they pay greater attention to what lies beneath the currency name,” Wood told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland.
Despite the market plunging in value in the weeks leading up to the event, crypto and blockchain enterprises were very visible at this year’s meeting of business and political leaders, with the eighth-largest coin Luna being nearly worthless.
Wood, a British computer scientist, was speaking about a new relationship between his blockchain business Polkadot and American businessman Frank McCourt’s Project Liberty for the first time.
Blockchains, like cryptocurrencies, are public ledgers that retain records of transactions on networks of computers. They are mostly uncontrolled.
In an interview with Reuters, Wood remarked, “The internet has no true sense of legality since legality is something that is defined by sovereign governments.” “While technology cannot prevent individuals from making mistakes, it may assist those who want to fully appreciate the facts of the world and what they’re purchasing,” Wood explained.
The 42-year-old, who created the name “Web3,” also founded the Web3 Foundation, which promotes the reorganization of the internet away from large corporations like Alphabet, which owns Google.
In recent weeks, cryptocurrency prices have dropped. Following a 17 percent decrease in April, Bitcoin has lost more than 20% of its value in May, illustrating the risks faced by investors of the extremely volatile assets.
Featured Image: flicker.com
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