Not long ago, Michael Novogratz, was interviewed speaking about the commercial scale applications in the context of the EOS platform. There Novogratz, the former hedge fund manager and founder of Galaxy Digital, also talked about the current state of the institutional investors in the cryptocurrency markets and their involvement through hedge funds.
Novogratz’s Galaxy Digital LP collaborated with Block.one, the firm at the back of EOSIO, for a pool of $325 million known as the ‘EOSIO Ecosystem Fund’, in the start of this year. On being interrogated about EOS in a conference with TheStreet, he explained the EOS [EOS]’s consensus algorithm. The algorithm that is being talked about is known as the delegated Proof of Stake, where a set of approximately twenty staking representatives are responsible for processing the blocks.
According to him, the big 20, which have great computational methodology behind them, the EOS blockchain is considered to have a greater processing speed when compared to the conventional blockchains. The current rate stands at 5,000 transactions per second but the rate should speak upto 50,000 transactions per second in a few months as per projections.
Owing to the unanimous decision to freeze seven EOS accounts just past month, that were suspected to be carrying nicked funds, he goes on to say that if the critics are to be believed then the fault with the EOS blockchains is that they are not decentralised enough. Nonetheless, it is the only model wherein commercial applications can be built into the model and experimented with.
However, he adds up saying that the institutional investors are gradually and evidently being brought to the realisation that EOS blockchain is the internet of sorts and the investors would eventually want to participate in it.
He went on to stress and elucidate his point, where he regards ‘investment in hedge funds’ as the first step towards getting involved in the market. Hedge funds include funds such as Sequoia Capital, Benchmark Capital, and Polychain Capital. The second step according to him is the procurement of new coins from ICOs, which is already being directed by venture capital investments.
Furthermore, while speaking about the clients, Novogratz mentions, it may be comparable to a television. Most consumers of the television do not bother with the functioning of the television as long as they get to watch it. Similarly, as long as the blockchain is functional and efficiently so, nobody really bothers with the the architecture or the construct of the blockchain.
Cory Johnson, Chief market strategist at ripple, insisted that the consumers fail to see the technology behind EOS blockchain and all they are primarily concerned with is trading in digital currency and assets.