Mainstreaming blockchain is the big idea at Upbit D Conference

From left: Keith O'Callaghan, head of asset management & structuring at Archax Capital; Alex Kim, director of digital asset security at Blockdaemon; Georgios Vlachos, co-founder of Axelar and Justin Kim, head of Asia at Ava Labs speak during a keynote discussion at the annual Upbit D Conference, or UDC, at the Shilla Hotel in Jung District, central Seoul, on Thursday. [DUNAMU] The wider embrace of blockchain-backed digital assets seen across the globe this year means that real-world changes driven by the technology have become more tangible than ever. At this year’s annual Upbit D Conference (UDC) held in central Seoul on Thursday, the mainstream adoption of crypto-assets as well as real-life use cases of the blockchain technology took center stage, particularly with the global trend expected to further accelerate under the incoming Donald Trump administration. Related ArticleAs Bitcoin shatters records, blockchain zealots welcome Trump's returnBitcoin breaks 128 million won in unprecedented Korean crypto frenzy Market players, therefore, now face a make-or-break question: Should they jump on the bandwagon, or wait a bit more on the sidelines until the dust settles? “The best technology always wins in the long run,” said Georgios Vlachos, co-founder of Axelar, during a keynote panel discussion. “I feel like we’re at a very critical point in the blockchain industry where many regulative players adopt the technology — so if you don’t want to fall behind, you should adopt the technology to make sure you’re part of this new wave,” said Vlachos. Following the U.S. approval of Bitcoin and Ethereum spot exchange-traded funds (ETFs) in January, major asset managers including BlackRock, Fidelity and Franklin Templeton launched spot cryptocurrency ETFs, which are experiencing an explosive inflow of money. Keith O'Callaghan, head of asset management & structuring at Archax Capital, noted, “I do think that the rule of thumb [is] that if BlackRock moves on something, if you’re an asset manager, you gotta be moving as well or you’re dead.” As the global trend continues to pick up the pace, Korea is also navigating a changing regulatory and industrial landscape for blockchain-backed digital assets. O'Callaghan, who moderated the panel discussion, noted that Korea is one of “the most sophisticated markets I’ve ever come across in terms of individuals’ understanding of crypto,” saying that “the addition of Bitcoin ETFs for Korean investors, especially institutions, would be very additive to the ecosystem.” Cross-border cooperation is crucial in ensuring smooth adoption of the technology, especially so in the early stage, said Alex Kim, director of digital asset security at Blockdaemon. “What we’ve seen is that TradFis [traditional finance] have to work with crypto units because of the fact that they’re not necessarily equipped with the ability to take custody of your digital assets yet,” said Kim. “I think, initially they’re going to have to work in tandem but eventually, there are going to be ways to bring some of those skillsets into their own houses.” Sascha Rowold, executive advisor and interim chief marketing and digital officer at LVMH. speaks during the annual Upbit D Conference, or UDC, at the Shilla Hotel in Jung District, central Seoul, on Thursday. [DUNAMU] While the potential of blockchain has been often hailed, the actual real-life adoption of the technology still faces various practical challenges, pointed out Sascha Rowold, executive adviser and interim chief marketing and digital officer at LVMH. “There’s a promise to [blockchain utilization], but the reality also is that there’s definitely a pretty high cost and adoption barriers,” said Rowold during an afternoon session dubbed “Blockchain and Luxury: Revolutionizing Craftsmanship or Destabilizing Heritage.” Luxury brands including LVMH have been adopting the technology with a so-called digital product passport, aimed at enhancing supply-chain transparency and the sustainability of luxury products, as well as with non-fungible tokens, or NFTs, used for certifying authenticity. However, the progress made so far has been “not impressive,” Rowold admitted, adding that the sector’s inevitable volatility also makes the technology harder to adopt. Blockchain-related service providers and developers should make the potential users, or buyers, of the technology be able to translate it “into what we do every day [...] in order for us to utilize that technology in a meaningful way,” suggested Rowold. BY SHIN HA-NEE [[email protected]]