Ludwin: Bitcoin network design is ill-suited for merchant-issued gift cards
Adam Ludwin · a16z Podcast | Blockchain vs/and Bitcoin · Jan 2, 2019 · at 5:21
Adam Ludwin, co-founder of Chain, contrasts public Bitcoin networks with custom blockchain infrastructure designed for corporate gift cards and merchant currencies.
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“Bitcoin doesn't actually fit quite well there, perfectly there, because the only way to leverage the Bitcoin network for Starbucks would be to kind of hack the network and layer a Starbucks dollar into the Bitcoin network, which is an approach called a colored coin. And the challenge there is, again, you're still dependent on the Bitcoin network and you may not want the Bitcoin network. It's not exactly well suited from a design principle perspective for that use case.”
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