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Companies such as Ethereum are currently trying to increase the low number of transactions per second with a major upgrade by subdividing the blockchain and adjusting the consensus mechanism.

«The mass of users is not interested in ideology»

In the meantime, however, there are also enterprise blockchains such as Corda from the R3 consortium or the Hyperledge Fabric from Linux. These are intended for business purposes and have much better performance. However, such blockchains are closed systems with a limited number of nodes, all of which are clearly identifiable. There is no need for an elaborate consensus mechanism for this.

Is anything lost as a result?

The strong decentralization is lost, that is, the original vision of the bitcoin blockchain. But with the internet, the evolution was similar. In the beginning, the founders emphasized the value of a decentralized peer-to-peer system. But even that system was increasingly replaced by a more hierarchical, centralized architecture because it made it easier to meet scaling and user needs. The mass of users is not interested in ideology. They seek simplicity and want to use new services easily.

Sound a bit disillusioned?

The original idea behind blockchain, that each individual can be their own bank, is fading into the background. Today, the aim is to maximize performance and convenience.

«Whether blockchain will really be needed for a system, infrastructure, or product in the future is an open question»

However, this does not mean that there will not be strong changes. Blockchain will probably not change and decentralize the whole of society, but in the long run, it can have a big impact on the way business processes are run.

What impact will the blockchain have on our everyday lives?

That is of course still difficult to assess, which is also what makes the topic so interesting. The SNB is dealing with the topic from the perspective of its statutory tasks, particularly in connection with cash supply and cashless payment transactions.

However, whether blockchain will really be needed for a system, infrastructure, or product in the future is an open question. That is why there is also an interest in allowing fintechs to compete in this ecosystem whose products are not based on the blockchain.

With the fintech license, we allow companies to participate directly in SIC (Swiss Interbank Clearing) and have a settlement account with us. Fintechs can thus distribute their services independently of the banking system.

Thomas Moser has been an alternate member of the governing board of the Swiss National Bank (SNB) since the beginning of 2010. He is responsible for the operational management of the Money Market and Foreign Exchange, Asset Management, Banking Operations, and Information Technology divisions, as well as for the Financial Market Analysis unit and the Singapore branch office.

Moser is a member of the managing committee of the Swiss Institute of Banking and Finance at the University of St Gallen and a member of the advisory board of the Swiss International Finance Forum SIFF. He holds a doctorate in economics from the University of Zurich.

In 1999, he joined the SNB as a senior economist in the International Monetary Relations unit. From early May 2006 to the end of 2009, he was executive director of the IMF constituency in Washington headed by Switzerland.