News | For the Blockchain network to work, cryptocurrencies are needed - says South Korean finance minister

South Korea's Finance Minister Kim Dong-yeon said that for the open-source Blockchain network to work fully, digital currencies are needed :

"Blockchain technology can change and revolutionize the world. But for open-source Blockchain networks, crypto-currencies are necessary to encourage individuals to participate in the network. "

During a public hearing on February 1, Yeon also supported the favorable position of ministries not to ban cryptocurrency in the short or long term, adding that there is no sign of elimination possible cryptocurrency or the possibility of creating such an environment in which digital currencies would no longer be used on the market.

"The Ministry of Finance does not intend to eliminate or prohibit cryptocurrencies. Blockchain technology is an important technological breakthrough to fuel the Fourth Industrial Revolution and, as such, the ministry will take a cautious approach to regulating the cryptocurrency market . For cases of negative use of these currencies, the Ministry will impose strict rules. "

Various known personalities and officials have previously added on the subject that the Blockchain is indeed an interesting development, but crypto-currencies like Bitcoin or Ethereum are not needed. In this way, Yoo Shi-min, a government member and famous author, targeted the bitcoin by naming it as a gaming tool while saying that Blockchain is a disruptive technology.

Jang Jae-seung, professor at the Korea Advanced Institute of Science and Technology (KAIST), the country's most prestigious technology university, directly refuted Yoo's claim, noting that without cryptocurrencies serving as incentive schemes, Blockchain networks can not work . Centralized Blockchains are not an option because they lack rigorous security measures, transparency and especially decentralization.

In the same vein, Minister Kim explained that the mining / mining process is very important and crucial for open source Blockchains networks, because without incentives, individuals will not have the motivation to contribute. :

"It does not apply to centralized or authorized Blockchains, but for open-source Blockchains networks, mining is needed to create blocks and provide incentives to individuals within the network, " said Kim.