Analyst explains the reasons why the Petro has been a failed project and how it could be recovered.
Five years after the launch of the Petro by the Venezuelan government, rumors emerged this week of its complete elimination due to the links of the former Sunacrip board with the oil corruption plot of the state company PDVSA.
In this context, we have talked with Johan Valera, crypto asset analyst and adviserabout the trust, usability and credibility of the Petro, since, as a result of all the events that have occurred in recent months, there are many doubts regarding the subject of which, according to Johan himself, Their answers go through two accurate strategies: political will and the modification of a native blockchain system of the cryptocurrency, that is, a new, more robust fork.
First of all, in Valera’s opinion, the construction of the genesis in the Petro block chain in 2019 had several problems, one of them was its “weak planning, which included making incorrect decisions and resulted in the limitation of its own scalability layer”.
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Then, Another of the incorrect decisions was the fixing of the operations in its unit of account, raised in two markets: primary and secondary, one fixed at 60 USD and another varied, with losses of more than 45% of its swap value, creating a unfeasible exchangewhere in addition, users paid unfair commissions, according to Valera, as a result of a “round business that included corruption and loss of digital assets”.
In addition to this, Valera explained that beyond political rhetoric, la Petro Moneda could never be a sovereign cryptocurrencysince it was built with third-party dependencies, in this case, he mentioned, in the Dash network, a US-origin network with an x11 algorithm, from which it was forked. “Additional to the structure of a poorly managed custodial system, thousands of users were blocked with the loss of significant funds in their wallets. This could be understood as a sabotage of the original Petro project.”he commented.
On the other hand, among the observations made by Valera was the fact that the Venezuelan blockchain community was excluded by the old directive because they remained in their own “secret bubble”.
“Even the community of blockchain developers in Venezuela itself was not and has not been taken into account in these times, by the current intervening restructuring board”the analyst noted.
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Sunacrip and Petro regulations
According to Valera, the extinct Sunacrip tried to whitewash its image, under the supervision of the Latin American Financial Action Group (GAFI), after the sanctions issued against the Petro during the government of Donald Trump in the United States. As a result of this, the Petro was indirectly affected in its usability, blocking the participation of groups of investors that operated in the capital markets on a global scale and were desirable for the purchase of the cryptoactive.
In this sense, Valera explained that as a result of the intervention of the FATF and its adaptation, the administration, during the year 2021, issued a series of regulations without foundations, among them the administrative ruling No. 054, with which it was placed in contradiction to article 32 of the Anti-Blockade Lawspecial decree promulgated by the National Assembly of Venezuela and that favors the diversification of financial mechanisms and the use of the chain of blocks.
“Provision 054 directly affected Fintechs, Semi or Decentralized, local blockchain ventures, and users of cryptocurrencies in Venezuela, creating uncertainty and discontent in the community”he detailed.
“In the same way, they excluded their own foundations, stipulated, for example, in the Infogovernment Law, they separated Venezuelan blockchain scientists and developers with advanced prototype projects and free code, made in Venezuela, superior to the Petro chain, in addition Sunacrip violated ethical principles, there was persecution in terms of sovereign technological development internally, to the detriment of the Venezuelan State.”Valera added.
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Silence, crashes and failures in the blockchain
Regarding the operation of the network, Valera stressed that it was important to explain to the community about the recent consequences “serious” that the Petro block chain had, after depending, according to him, on the Dash network.
According to him, the crash of the petro system is the consequence of the Hard Fork of Dash v18 – v19the same one that could affect the final synchronization of the Petro ecosystem and the decision of the authorities not to restart operations until now and immediately.
“The update of the Dash blockchain paralyzed its system and made global transactions impossible, the projects that depended on the governance, including the main synchronization of the master nodes and nodes including the Petro”indicated.
“As of this event, the Petro system was left without a transaction record, evidencing this result in its explorer. On the other hand, lots of complaints were received from users due to the lack of support, waiting for responses from the authorities, thus generating concern and little transparency, many users lost their money”explained Valera, who also said narrated that until now the authorities of the restructuring board have not explained these matters.
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Can the Petro be recovered?
In Valera’s opinion, The Petro cryptocurrency can have better benefits if it is built based on its own blockchain, that does not depend on a limited network and develops its native algorithm under its ownership or custody. cryptographic, for example a Bitcoin hard fork or an immutable superior platform to it, may be the ultimate solution.
“These developments, developers and scientists exist in Venezuela, we must incorporate them and call them to restart”he declared.
“Likewise, these expert developers should be summoned to execute the scalability of an ecosystem that includes gateways, atomic payments, via blockchain between the Central Bank, public and private banks, crypto exchange houses and payment systems, local, global, commerce digitally, transparently and with calls for inclusive participation”he added.
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Finally, Another element of great importance, according to Valera, is to place experts in the blockchain field, or there are advisors who execute a large-scale blockchain project, and in this sense, errors are not made with meaningless guidelines, ignoring the origin and infinite uses. of digital assets, adding participatory governance.
Below is an example proposed by Valera of a transparent scalable blockchain, which allows the Petro to have integrated transactions under an independent encrypted ecosystem, including a Central Bank cryptocurrency (CBDC) within the framework of the digital bolivar at the blockchain level.
Source: Johan Valera
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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