Blockchain needs more investment in infrastructure
Jun Du, founder of Node Capital, said this weekend that blockchain needs more investment in the technology’s infrastructure as the clamour surrounding potential uses of distributed ledgers intensifies.
“There are so many ‘me too’ investments in blockchain right now,” said the former chief executive of the Huobi exchange.
Indeed, patent offices are awash with applications for blockchain patents: in 2016 there were 313 applications for blockchain patents worldwide; in 2018, Fortune magazine expects the overall number of blockchain-related patent applications to number around 1,245.
“This wouldn’t happen in a mature market. So at Node Capital, we focus on projects that are developing protocol or fundamental infrastructure. This area has not developed fully and there are many potential opportunities,” said Du in an interview with ZDNet published on Monday.
While exchanges are seeing the biggest profits and have a loud voice in the blockchain industry, greater attention needs to be focused on technology – wallets and fundamental platform infrastructure – Du adds.
Node Capital has invested in 160 global blockchain projects – mostly in Asia – and is now looking to expand its operations in the US.
“In Asia, there are great ideas for blockchain applications. But in terms of technology, it is very lacking,” Du said. “We believe that expanding to the US will solve this problem.”