Stephen Holmes on 5 Pros and Cons About Crypto
By: Charles Wu
Tags: VP, Blockchain, CEO, Cto Virtusa Xlabs, Bitcoin

I had the pleasure of interviewing Stephen Holmes, VP, CTO Virtusa XLabs

I have a long history in the IT industry of working with disruptive technologies and bringing these to market. At IBM MQSeries at HP Linear Tape Open (LTO). Cryptocurrencies and Blockchain are truly disruptive technologies that exhibit all the tell-tale signs of any disruptive technology… rapid awareness, hockey stick performance improvements, driver of new disruptive business models.

Can you tell me about the most interesting projects you are working on now?

Currently we are working on a range of fascinating projects that range from traditional payment rails replacement, next generation Crypto Exchanges, Distributed Trust Networks and practical implementation issues for massively scalable multi-party systems.

What are the 5 things that most excite you about crypto? Why?

We have seen rapid rise and awareness of cryptocurrencies (classic sign of disruptive technology) New developments in token standards move from ERC20 to ERC223 (more robust) will enable a smoother integration of cryptocurrencies with traditional banking platforms like credit and debit cards (Practical means of integrating old with new) 2018 will see a growth in cross border payments using cryptocurrencies. Ripple and Visa will start to impact this marketplace. (Without competition there is no market) New cryptocurrencies will drive competition and reduce transaction costs (Remember the cost of selling your Bitcoin…) Regulatory compliance will ultimately have a positive impact on adoption. (Gibraltar is one of the first jurisdiction examples where cryptocurrencies and ICOs are legally regulated. Leading to more confidence and trust in these currencies).

What are the 5 things worry you about crypto? Why?

Massive volatility is still evident for Cryptocurrencies (Investors need to be aware of this and plan accordingly) Sins of past unregulated marketplaces are alive and well… think pump and dump etc. (In an unregulated marketplace the old “tricks” resurface, hence why regulation is actually more important than most people think). Regulatory crackdown can be heavy handed and impact marketplace (Investors need to know where they stand from a tax and legal perspective. Markets hate uncertainty) Security of wallets and exchanges is an ever present and growing issue (We have seen a number of recent attacks on exchanges and wallet security is still the weakest part of the ecosystem) The rise of geopolitical cryptocurrencies that will challenge established FIAT reserve currencies and remove global oversight possibilities. (Venezuela was the first Country to moot the idea of crypto-currency for Oil and Gas… many other Countries are currently considering this. The Chinese PetroYuan is now trading so it is only a matter of time before Cryptocurrencies enable real payments that can undermine existing international sanctions rules).

What 3 things would you advise to someone who wanted to emulate your career? Can you share an example for each idea?

Always stay curious and question why? We live in an artificially constructed world and the ability to stay curious, explore and question the way things exist is (sadly) a rare quality in today’s world. Think about what comes next? As Einstein eloquently stated…”We cannot solve our problems with the same thinking we used when we created them”. Our society is focussed on today’s problems and today’s thinking… Read (especially) Science fiction… because science fiction often becomes science fact and enables us to free ourselves from the dogma of today. Enabling us to free ourselves to think in different and more creative ways. Reading is becoming a lost art and the discipline of reading is at a deeper level than skimming articles on the internet.

Finally, look to get involved with projects that use disruptive innovation. Warning: it can become addictive. After working with disruptive innovation incremental innovation projects will be plain boring!

Watch the full interview below: