11:34 GMT +324 January 2020
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    The architect of a new advanced blockchain platform has revealed Russia’s role in the development of this new prospective technology, and shared his vision of cryptocurrencies’ future with Sputnik.

    Alexander Borodich, creator of the Universa blockchain platform who paid a visit to the Russian House in Davos during the ongoing World Economic Forum, told Sputnik that "people believe that bitcoin may actually become the digital equivalent of gold."

    "The supply on the market is limited and, assuming that the trust in bitcoin does not decline, its price will continue to increase in the long run. Meanwhile the demand for bitcoin keeps growing," Borodich explained.

    Borodich, founder and head of an IT company called Universa, has created a new blockchain protocol that can process up to 20,000 transactions per second (as compared to Etherum’s 15 transactions per second and Bitcoin’s 1-2 transactions per second), effectively debunking false assumptions about the high price and low speed of blockchain technology.

    "I believe that blockchain is a new technological wave which will undoubtedly change our life. And this change will affect not just governments and companies but ordinary people as well," he said.

    He also pointed out that even though the future of cryptocurrencies may appear a bit uncertain at the moment, it will not affect the spread of the technology which created them.

    "Blockchain is a technology. When dotcoms were collapsing in 2000, the Internet survived. And while dotcoms may be gone, large enterprises like Amazon, Google and Apple are still around," Borodich said.

    READ MORE: Major Payment Operator Will Bail On All Bitcoin Transactions by Late April

    As blockchain technology becomes more and more popular, new cryptocurrencies may begin to emerge. For example, last year Venezuelan President Nicholas Maduro heralded the creation of a cryptocurrency called the “petro,” with each of the 100 million coins being backed by a barrel of crude oil produced in Venezuela.
    Russian Communications Minister Nikolay Nikoforov also proposed to begin issuing a new national cryptocurrency called the CryptoRuble.

    As Borodich explained, Russia will eventually switch from paper money to a digital cryptocurrency though it’s as yet unclear what the latter will be backed by.

    "In the case of Russia it may be oil or other national resources, for example; and in that case cryptorubles’ holders will know that their digital assets are worth something because oil has a certain price as well," Borodich noted.

    He added that "in 70 percent of instances, blockchain creators speak Russian," underscoring the country’s growing role in the advancement of digital tech.

    "Russia House," the Russian official residence in Davos, opened its doors on January 23, 2018 during the 48th World Economic Forum, promoting Russian initiatives among the representatives of international business and political circles attending the gathering.

    The views and opinions expressed by Alexander Borodich are those of the speaker and do not necessarily reflect those of Sputnik.

    The views and opinions expressed in the article do not necessarily reflect those of Sputnik.


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