Paul Chou, CEO of LedgerX and the bitcoin advisor to the U.S. Commodities and Future Trading Commission (CFTC), says companies trying to use the blockchain without bitcoin are seriously misguided, and so far the concept is unproven, according to New York Business Journal.
Chou says bitcoin and blockchain are inextricably linked and must remain as such for blockchain technology to become widely adopted. Chou’s LegderX is working to establish a regulated bitcoin derivatives market.
Separate Bitcoin And Blockchain?
Chou and other bitcoin advocates say without an incentive to compensate a wide network, blockchain will lose its effectiveness.
LedgerX is building products for financial institutions using bitcoin. The company has raised about $1.5 million in venture capital and is seeking additional funding.
Chou in September 2014 submitted applications to the CFTC to become a swap execution facility (SEF) and was granted provisional status in 2015. He has also applied to become a derivatives clearing organization (DCO)