Norbert Goffa speaks in detail about the evolution of the cryptocurrency and blockchain industry and shares his opinion on how to succeed in the new environment.
ILCoin is a cryptocurrency that exists since 2015, however, the hard fork that happened at the beginning of 2019, proved to be transformative for the project. ILCoin’s team of developers has completely reworked the structure of the existing blockchain and rewritten the code, which resulted in the development of a unique quantum-resistant C2P protocol (Command Chain Protocol). The innovative technologies allowed to ensure a high level of the coin’s security.
Recently, we sat down with Norbert Goffa, the project’s Executive Manager, and talked about the transformative processes that are taking place in the industry and how ILCoin project positions itself in the new environment.
1) You position ILCoin as a project that pursues superior technology, in contrast with so many projects that put marketing and good looking white papers over proper technological basis. Do you believe that, as ILCoin’s acceptance grows, it could become an example for other projects to follow? Would following your ideology allow the industry to develop faster?
Since the ICO boom in 2017, writing White Papers has been a separate business. True enough, many projects have been more focused on promoting their projects than on creating real value for users. As the industry remains mostly unregulated, it is easy to use the tokenization idea to promise anything without having a solid technological foundation or even a real use case behind your project.
However, this is a short-sighted approach and a road to nowhere. In 2017, the market got very diluted, as many ICO projects had fundraising as their primary aim and did not produce any technological advancement. Consequently, it resulted in numerous exit scams and shed a bad light on the industry.
However, those times of hype are gone. As the market has become more mature, it is no longer enough to make big claims and build a blockchain for the sake of having a blockchain. To survive and succeed in the long run, you need to prove the technological value of the project. In this sense, I do believe that we can be an excellent example for others.
2) In your opinion, what is necessary for a blockchain project to achieve success? Is solid technological base enough, or does it require something else, as well, after all?
Sure enough, it is hard to expect that a blockchain project will achieve success without a robust technological base. At this stage, many decentralized projects emphasized their “easy to use” feature, which is logical and business-wise. However, being user-friendly is not enough for a project to survive and bring value. We need to address the potential problems and difficulties of data storage, sort out security issues, and answer basic questions, regarding technology robustness.
From this perspective, we need a new generation of cryptocurrencies where technology serves as a foundation, upon which a real value focused on users’ security and system’s sustainability is created.
3) Considering the turmoil that the crypto-community has been through due to the recent bear market, it is not an exaggeration to say that many people have lost faith in crypto and blockchain. Or, at least, became highly skeptical of them – do you think that a change in approach towards sustainable and reliable technology would be enough to regain their trust?
Yes. As I have mentioned before, we need to change the perspective and approach to what we develop and how we do it. Crypto market needs technologies that will allow to discover blockchain capabilities and thus bring value to everyday users.
I believe that we have gotten over the “naive” phase, while the bear market of 2018 was a necessary stage of moving into a more mature state, with certain lessons to be learned. Nascent technology and a low level of understanding of its workings led to the hype and allowed for many scams and hacking attacks. Naturally, they eroded trust in crypto and blockchain in general. To restore it, we need to refocus on real values of DLT technologies and bring them to light.
The problem is that most of the current applications are not part of the blockchain technology; they only connect to it. TX operates on blockchain technology, but nothing else does. The issue of data storage should be resolved and, simultaneously, security needs to be improved, too.
4) Your position is based on the fact that technologies should be the basis of any cryptocurrency – but at the same time, many choose in favor of those cryptocurrencies that do not have anything to them other than competent PR and marketing. And they’re doing well. Why have you chosen a different, a way more difficult path?
Being in the sales business for more than 15 years, I am aware of all the tricks and manipulation tools. So, I can say for sure that the projects that have no valid technology, no real value behind them and rely exclusively on PR and marketing tools, are committing fraud. Basically, they sell you a whole lot of nothing.
The crypto market has already gotten over the “learning phase,” which means that those tactics may not be working as well as they did in the past. Speaking of prominent projects with weak technical foundations, I can say that it is way easier to promote yourself and reap the benefits of trust with high market capitalization. However, this approach has limitations and won’t pay off in the long run. I don’t want to come across as too arrogant, but, in my opinion, some top-10 cryptocurrencies need to show way more serious and appealing results than what we experienced in the previous two years.
5) Tell us briefly about your C2P technology and the size of your block – how did you manage to achieve a capacity of 25 megabytes and ensure security?
That’s a good question for our developers. However, a 25MB threshold was not that challenging. Moreover, it is no longer our best achievement as we like being two steps ahead of what we show. I don’t want to get into the details at this stage, but I hope that my words will get credit soon.
A quantum-resistant C2P protocol is a milestone on the market and an innovation of ILCoin team that we take pride in. C2P is a multi-layered system based on different node functions and two-level system of digital signatures. It is capable of eliminating malicious attacks, and very soon we will be able to prove it with a certification. Basically, with C2P, we have created a new foundation for blockchain operations.
6) What are the blockchain market prospects? What will it be like in 5 or 10 years? Please tell us your opinion. Who will remain on the market? The strong players?
This question deserves a separate conversation. However, in my opinion, the blockchain use cases will prove transformative and bring the most significant technological challenges of our time.
As blockchain is capable of historically storing all happenings, it may create a new value perspective in economic and financial fields. However, it comes with dual responsibility, and its consequences are unpredictable. The decentralized approach will work until it gets abused. I believe that the current approach will undergo radical changes. Now, the blockchain market is in its “rebellious adolescent” phase, and the most that we can do is learn the lessons and move on to a more mature state.
7) As you seek to change the rules of the game in the market, are you not intimidated? Don’t you feel afraid of competitors that bet on replicating existing solutions?
ILCoin’s team of developers has created an innovation capable of bringing a potential paradigm change to the market. Our technological breakthroughs – C2P and the 25MB block size – are only the beginning. However, we do not want to compete with anyone, as our primary goal is to live up to our own expectations and foster the blockchain and cryptocurrency market to evolve into an integral whole to the benefits of users.
We would be happy to see other projects to follow our lead and focus on technology that brings real value by solving the pressing issues of the industry. At the end of the day, users will make their choices.
8) Hack attacks have been a real issue for the industry. Many cyber thefts and security breaches discredited many blockchain and cryptocurrency projects and eroded trust in the technology. Do you believe your technology can become a solution?
Hacking is a very pressing issue that has been largely neglected by the overwhelming majority of the projects, even the most prominent ones. Very few – if any – top cryptocurrencies have at least a basic solution to protect the system against malicious attacks, while decentralization implies that the members of the community will share responsibility.
Actually, it is an important question that might determine the future of cryptocurrencies in the long run. ILCoin is committed to building an ecosystem with a high level of security, resistant to 51 percent attack and other frequent issues, including a threat of quantum computing.
9) Regulators around the globe remain skeptical about cryptocurrencies and blockchain technologies. Some countries have resorted to a restrictive approach, while others take adopted wait-and-see approach and deal with the issues on a case-to-case basis. Do you believe that the technological value brought by ILCoin will be able to break the ice with the government and the regulators?
The critical regulatory approach is quite understandable as low transparency, and a low level of security makes the industry vulnerable to security breaches and all sorts of manipulations. The period of ICO boom in 2017 and 2018 brought numerous stillborn projects and resulted in distrust which forced regulators to crack down on the industry.
Due to a bad reputation, it has been increasingly challenging for solid projects to enter the market and earn the trust of both investors and regulators. This can be done by ensuring more transparency and offering a real game-changing value for users, which is not achievable without a robust technology that solves the issues of the existing blockchains. As soon as new projects with such a technology-focused approach start to appear as contrasted to PR and marketing approach, the regulators’ attitude will begin to change.
10) What are your plans for the future? Have you already reached your goals in terms of technology development, or you have more ideas to put into practice? Share your plans with us, please.
Actually, a project that has no more development goals is a dead project. To ensure long-term success and survive in a highly competitive environment, you have to move on and create something new and exciting. Once you decide that you can rest on laurels, new, more ambitious and innovative projects will pop up out of thin air and leave you behind.
I don’t want to go into details at this stage, but we have many exciting features being developed right now as we speak. I hope that we will be able to test them out pretty soon. Our source code is publicity available in GitHub, where any software engineer can examine it and leave their comments. This helps us to spot bugs before they become issues. Also, we plan to hire independent auditors and cybersecurity experts to eliminate potential vulnerabilities. In other words we strive to build on our security-focused concept and make ILCoin even more reliable and hack-resistant.
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Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.