When critics bemoan the lack of meaningful adoption of blockchain by enterprises, they often point to a lack of return on investment, or killer use case, or inflated expectations. The founders of Concordium believe that there’s a far more fundamental reason why businesses are hesitant to incorporate blockchain – compliance. Many public blockchains, including the mighty Ethereum, prize privacy over an enterprise’s legal obligations to identify the parties with whom it is doing business.
The value of this compromise shouldn’t be underestimated. The average cost of compliance for any organization, in any sector across the world, is $5.47 million. It seems excessive until you consider that the average cost of non-compliance is close to $15 million.
Recognizing the critical role that compliance plays, the creators of Concordium have developed a public blockchain infrastructure that allows enterprises to achieve a much-needed equilibrium. It allows for the legal identification of users but offers transaction privacy in all circumstances except those where they need to be legally identified.
Vision and Team
Concordium was founded by Lars Seier Christensen, who founded Saxo, a Danish investment bank, back in 1992. Under his leadership, the company expanded significantly and is still in operation today.
The financial sector has a heavier compliance burden than many others. It’s this depth of understanding that led Seier Christensen to recognize that many public blockchains are simply not fit for enterprise purposes. He explains his vision for Concordium in a video, outlining the value that blockchain can bring to various sectors if it was designed to help companies fulfill their legal obligations.
Concordium is now developed under the direction of the Concordium Foundation, which Seier Christensen chairs. He is joined by Professor Ueli Maurer, a distinguished name in the field of cryptography who also serves as Professor of Computer Science and Head of the…