Around the Block with Jefferson Nunn – Interview with Paul Brody of Ernst & Young – crypto.news

Paul Brody  9:48 

Yeah, so I will just sort of add, before I do that, I want to add to one of your comments you talked about sort of all the things that Ethereum Foundation is doing. We are at EY very committed to Ethereum and right this is So we’ve made a choice, which is that we want to be focused on Ethereum. And we made this choice for a couple of really important reasons. Number one, we believe in public blockchains. And very importantly, I believe, you know, and I don’t think it again, doesn’t take a rocket scientist to do this. But I believe that sort of Metcalfe’s Law, which is a sort of power of network effect, is in effect, right. These are network businesses, and the rules about network businesses, are they a winner take all businesses, but the more of the bigger the network becomes, the more valuable it becomes. So, if you’re going to play in the world of blockchains, you really should just focus on the best. And then I’m applying to the kind of I’ll call it the GE role, the famous you will be number one in the market. Well, every dollar I have is focused on from an engineering perspective, and making sure that we are number one in the Ethereum ecosystem. And I am immensely grateful. I want to take a moment to express my incredible gratitude to all of my competitors who continue to push private blockchains are talking about a mock multi blockchain future, right, thank you, because you are clearing the space for us. That, let me give you one other comment about Ethereum, which is that if you didn’t have something that we don’t see in any other sizable public blockchain, which is institutional maturity, the Ethereum foundation is run by a bunch of super boring nerds. And that’s pretty much the highest compliment I can give them. They spend more time thinking about scalability about security, they hire top notch people, they pay them well, right. And they focus on public good. And if you look at the process that they’re taking on around the merger, shift from proof of work to proof of stake, it’s been slow, meticulous, painstaking, carefully plans, right. And what I talked to clients about, which are our clients are all the world’s biggest financial and business enterprises, I tell them, what you want, is institutional maturity, you want this kind of slow, careful, methodical execution, from infrastructure that you are going to trust a big part of your business to in the future. So, we’re all in on this area, with regard to what we are going to do in the future and where we see business cases going big. Now that if the mergers coming in at layer two networks are maturing, we are no longer really worried about transaction costs or transaction volume. What we are worried about and our big strategic focus from an r&d perspective, and the why is privacy blockchains work because the transactional data is public. And for some things like financial services, you get a level of privacy by running your transactions through an exchange, where it’s impossible to see if yours is with somebody else’s. But if you’re an enterprise, you have specialized products, right? For example, one of our clients, they still are using a private blockchain, we’re trying to convince him to move over but they meant 500,000 NFTs every day, each NFT is aligned to a single package of their product. That’s got a serial number on it. Well, you can follow 500,000 NFTs around on a blockchain out there, and you could figure out how their business is doing all kinds of stuff. The only way they can move to a public blockchain is if they can have privacy. And so, the big milestone for us is with privacy technology, we can unlock lots of new business cases. And in the case of Ethereum, the privacy technology we developed and put into the public domain is called nightfall and nightfall lets you take any ERC 2721 1155 and put it into a privacy contract. Then once it’s in there, you can move it around without having to show anybody else what you’re doing. And one of the big milestones that happened for us this year is we released a third version of this technology and then polygon which you may know is the basically the biggest kind of layer two inside chain operator in the Ethereum ecosystem. They picked up that technology and they launched a layer two privacy and network focused on enterprise users called polygon nightfall. And with polygon nightfall up and running, we can start to build Supply Chain Solutions and, and finance solutions that make use of privacy technology, which starts to expand the range of use cases that enterprises will want to take on.

Source: https://crypto.news/around-the-block-with-jefferson-nunn-interview-with-paul-brody-of-ernst-young/