Chain CEO: Finance is the core area of ​​blockchain disruption, and other areas are just marginal use cases

Adam Ludwin, CEO of Chain, which has developed blockchain protocols for Visa and Capital One, told Fortune that blockchain’s primary purpose is to disrupt financial networks, not the non-financial sectors cited in many reports.

Ludwin said blockchain is a currency database and he doesn’t understand why people are talking about the technology’s impact on property deeds, voting registration and medical records. While he acknowledges that blockchain can accomplish these things, he sees them as fringe use cases that distract from blockchain’s core purpose, which is to replace a layer in the financial system by truly digitizing money.

The financial system message layer will exit

Ludwin recently urged central banks to adopt blockchain technology, which he believes will disrupt existing networks such as SWIFT and clearing houses that use slower financial processes. Online communications allow institutions to agree on certain transactions in seconds, but recording the agreement can take days.

Ludwin said that blockchain technology is most likely to disrupt organizations that process digital information for custodians. In other words, the messaging layer is the most likely to be disrupted by blockchain.

Chain has raised $44 million in funding and is creating software that will allow the financial industry to replace existing record-keeping systems, Ludwin said. Currency will become a fully digital asset, and banks will use the blockchain to directly send the assets themselves, rather than sending messages recording the transfer of those assets.

Chain has developed a blockchain protocol for Capital One, Visa and other financial firms. Its competitors include R3, which is creating blockchain standards for banks, and Digital Asset, which is helping the Australian Stock Exchange restructure its back-end.

IBM and other technology companies are also expanding into blockchain technology.

Why is Chain unique?

Chain is unique, Ludwin said, in that it is a Silicon Valley tech company that is primarily focused on technology. He contrasted Chain with Cloudera and HortonWorks, which offer a model for creating next-generation networks and databases.

Asked how he knows Chain won’t get sucked into the blockchain hype he’s criticized, Ludwin didn’t give a direct answer, saying the August press release would be his last until he has a product to show.