CalvinAyre.com’s Becky Liggero caught up with nChain Chief Scientist Dr. Craig Wright who explained why tokenization on the Bitcoin Cash (BCH) chain is the way to go forward.
Digital tokens are the keys that will support a broader range of transactions as they allow an asset that exists in the real world—or at least not on the blockchain—to be represented within a blockchain transaction.
In the gambling industry, tokenization means a much more honest and open online gambling and casino experience. There have been several iGaming operators that have already launched their versions of a decentralized coin that puts control in the hands of players. When it comes to tokenization, there’s no denying that Ethereum had the first-mover advantage as it’s basically just smart contracts—a feature that’s already available with Bitcoin Cash (BCH).
Unlike in Ethereum, which doesn’t scale or work as a cryptocurrency, tokenization on the Bitcoin BCH chain is the way to go forward. And there are three reasons why it will work on Bitcoin BCH: scalability, security and extensibility.
According to nChain Chief Scientist Dr. Craig Wright, though tokens are often associated with Ethereum-based ERC20 and ERC721 for use in gaming, Ethereum itself is limited by its lack of scalability, among other issues.
“The way we have constructed contracts in Ethereum means that you actually have limits. You’re always going to have limits. You have to run them all over the place,” he said.
nChain, the leading blockchain R&D firm, intends to expand the use of tokens to include, basically, everything.
“We’ve been developing ways of actually extending what you can do. None of this just being locked in with the ERC20 contracts or ERC721. We’re going to make the basic tokens for utility, stocks, bonds, everything else. We’re going to make a system that enables financial securities, that enables everything anyone can ever dream of, to be actually integrated on the Bitcoin Cash blockchain, so actually have locking systems for Internet of Things and going beyond anything we can think of now,” according to Wright.
The goal, according to Wright, is to see a world where someone can spend 1 cent on a slot machine.
“If you’re talking about gaming, we want people using things like access chains and whatever else on top of Bitcoin Cash that will enable something like billions of transactions within a single Satoshi exchange. When you get to that point, then you can start saying, ‘This transaction cost me a hundredth of a cent, what can I now do?’” he said. “Imagine instead of having people complaining about $1 being way too high and they can’t afford it, imagine being able to set up 1 cent slots.”