Category Archives: Blockchain, Crypto, ICOs

Large Enterprises Are Betting On Blockchain In 2019

Forbes | Biser Dimitrov | Aug 13, 2019

Blockchain and enterprise - Large Enterprises Are Betting On Blockchain In 20192019 is the year when the blockchain ecosystem and the crypto industry as a whole had to get sober. After a wild 2017 and a bear 2018, the blockchain space is back on an upwards trajectory with new developments. There are no more Initial Coin Offerings (ICOs) to distract the crypto ecosystem and the building mentality is back on. This post-ICO and post-useless-PR-partnerships age urges the blockchain community to be less focused on the current price of bitcoin and more focused on producing meaningful services and advancements. Big projects from established enterprises like Facebook Libra are taking all the media space now and this is net positive for the enterprise blockchain space as well.

The first half of this year was full of blockchain developments led by large enterprises in almost all important sectors, including insurance, financial services, supply chain, healthcare and trade finance.

There is a huge benefit in joining a specialized industry-focused blockchain consortium because you sit at the same table with your main competitors but at the same time you work toward the same goal. You are not alone in figuring out the benefits, implementations and roll-out of distributed ledger technologies.

See:  Element AI: The market is still figuring out how to share data with enterprise AI startups

There is also a financial benefit when commonly building applications as sometimes the membership fee is lower than the cost of hiring and training blockchain developers. Some of the big names in leading blockchain consortia networks that have made significant progress so far in 2019 are:

  • B3i, a blockchain consortium focused on the insurance industry, recently launched its first live product on R3’s Corda platform. Their members include big insurance and reinsurers companies like Allianz, Munich Re, Swiss Re, Tokio Marine, XL Catlin and Zurich.
  • Energy Web Foundation (EWF) launched their enterprise-grade public blockchain with 17 applications already on it. That network consists of 100 affiliate members like Total, Shell, GE, Siemens, Duke Energy and PG&E.
  • Global Shipping Business Network (GSBN) was created by five of the ten largest container carriers: CMA CGM, COSCO SHIPPING Lines, Evergreen Marine, OOCL, and Yang Ming.
  • Two of the largest health insurance companies in the United States, Humana and UnitedHealth Group, have teamed up to tackle the massive datasets of provider demographic data from hospitals and medical partners.
  • Health Utility Network was formed by Aetna, Anthem, Health Care Service Corporation, PNC Bank and IBM to drive digital transformation and blockchain enabled-solutions within the healthcare industry.
  • In the space of trade finance, the biggest names are project Voltron, focusing on letters of credit; Marco Polo, implemented on R3’s Corda; and we.trade, which runs on IBM Blockchain and consists of 12 of the biggest European banks, including CaixaBank, Deutsche Bank, HSBC, Santander, Société Générale, UBS and UniCredit. They are all moving forward with pilots and we have seen live results, like the completed transaction between the European Union and Asia on Marco Polo.
  • The owners of the famous Louis Vuitton label, LMVH, launched a special blockchain that will help prove the authenticity of expensive goods. It is built on Ethereum with the help of Microsoft.
  • Samsung launched a consortium including six major South Korean companies, focused on launching a blockchain-based mobile ID system. The company is already pretty advanced in their blockchain and crypto developments with the release of the Galaxy S10 phone with designated crypto wallet and Blockchain Keystore online app marketplace. Moreover, Samsung released a developer-friendly Blockchain SDK.
  • The IBM Food Trust network launched. Built on Hyperledger Fabric, the network aims to create a traceable audit log for time-sensitive foods and when an issue occurs, the network participants will be able to pinpoint exactly where the damaged items shipped and won’t have to empty all their shelves. The consortium consists of companies like the European giant Carrefour, Walmart, Nestle, Dole Food, Tyson Foods, Kroger and Unilever.
  • Walmart, similarly to Samsung, is involved on several different tracks with blockchain. They have joined MediLedger, a private consortium that aims to create a drug supply chain. Apart from that they are also partnering with KPMG, Merck and IBM as part of the FDA’s program to evaluate the use of blockchain to protect pharmaceutical product integrity. Recently it become public that Walmart also filed a patent for issuing a digital currency on a blockchain, or stablecoin, as they are known in the industry.

See: 

The whole private consortia ecosystem is still in early development but the right mentality is there. We will see how the technology develops over time to support those formations. A popular approach might be a hybrid infrastructure, where consortium members interact with each other in a permissioned environment or a shard but eventually anchor to some public blockchain for audit and reference purposes.

From the enterprise blockchain technology perspective, this first half of 2019 was pretty interesting and the major blockchain platforms made progress in not only improving and maturing their services but releasing new products. The general sentiment has been to focus on privacy, consensus options and digital asset standardization in anticipation of the tokenization revolution.

Continue to the full article --> here


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

China’s digital fiat currency is ‘nearly ready’ for launch: PBOC official

TechNode | Nicole Jao | Aug 12, 2019

Peoples bank of China - Large Enterprises Are Betting On Blockchain In 2019China’s planned digital fiat currency is nearly ready for release after five years of research and development, a senior official at the central bank said (in Chinese) at a forum on Saturday in Beijing without confirming a timeframe.

Why it matters: The People‘s Bank of China (PBOC) aims to steal a march on global counterparts by accelerating the development of its national digital currency.

  • The central bank has been researching and developing a digital currency since 2014, though specific details remain scant.
  • The government’s fast-tracking of the national digital currency was reportedly prompted by fears that the emergence of cryptocurrency projects like Facebook’s Libra will bring disruption to its economy.

“As one can imagine, to issue digital fiat currency in a country as big as China, the employment of pure blockchain architecture cannot fulfill the throughput required for retail usage. Eventually, we decided that, at the level of the central bank, we should remain technology-neutral and not preset a technology roadmap, meaning not relying on a specific technology.”

Mu Changchun, the deputy chief of central bank’s payment and settlement

See:  Central banks should consider using digital currencies: China think tank

Details: Mu Changchun said the currency would not rely entirely purely on blockchain architecture, in a speech at the China Finance 40 Forum held by the PBOC on Saturday.

  • Mu said the country would instead employ a two-tier structure, with the central bank on top and commercial banks below, for the digital fiat currency, which he referred to as the digital currency/electronic payment (DC/EP) system.
  • The DC/EP will serve as a replacement for M0 (money issued directly by the central bank). It will flow easily like cash and will aid the yuan’s internationalization, he said.
  • The PBOC will also implement real-name verification as well as measures to counter illegal activities such as money laundering, terrorism financing, and tax evasion.
  • The two-tier architecture is meant to offload some of the risks from the PBOC.
  • The central bank insists that the DC/EP will adopt a centralized management model.

Continue to the full article --> here


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

How Many Colleges Teach Blockchain Technology in the World

Guest Post | Aug 12, 2019

Blockchain tiles - Large Enterprises Are Betting On Blockchain In 2019

Image: Pexels

Blockchain is the hype today. The talent is in high demand and the technology takes over many of the headlines in publications and news. Investors keep piling their money into it. Blockchain is known to be the best thing that happens to public services. As a result, we are witnessing an increase in blockchain education. In the past few years, universities slowly began introducing blockchain technology courses and designing special programs that teach you the skill.

However, as we mentioned, this usually goes really slow. By the time the education designs great programs and lists new courses, the technology will have switched and advanced. This is why your choices in terms of blockchain courses and education are still rather limited. However, the number of universities that offer them is growing by the minute.

Blockchain Today

In our list, you’ll find about the most prepared universities that offer a blockchain degree. Finding a university that has this course can be truly beneficial for your career and future, which makes this a serious decision to make. If you enroll onto a program that excludes blockchain from its curriculum, you’ll be left out in the modern job market.

See:  Blockchain Technology and the UN: The Sustainable Development Goals

Statistics are there to prove all this. According to modern estimates, we’ve experienced an increase of 200% in jobs related to blockchain technology and Bitcoin in 2019. Compared to 2015, this number has grown by 600%.

Therefore, if you’re looking to work in the finance and accounting world in the future, you must definitely get blockchain technology education. This will get you ahead of the competition, especially if you choose a great blockchain university to obtain your education in.

Places Where You Can Get Blockchain Technology Education

Before we get into the actual colleges and universities that offer these courses, let’s discuss your options. Students who don’t have access to such education at college have started establishing online clubs like the BEN or Blockchain Education Network. They perform research, use online courses, and even publish materials to show their findings.

Without any further ado, here are the programs you should definitely be looking into:

1.   Cornell University

The Cornell University is the youngest Ivy League university. Its main aim is to provide modern technology education. This makes it different from other Ivies that started off as liberal arts colleges and seminaries. Because of it, Cornell is now considered a leader in computer science and one of the most promising research universities worldwide.

Since this university is mostly focused on innovation and technology, you’ll get the chance to study very useful skills that will take you ahead of the competition. If you like to study blockchain but struggle with some other subjects, there are services that can do your homework for you and relief you from the pressure.

2.   Duke University

The Duke University is known for its successful business, medical and technological research opportunities. It has the most research spending in the world, and in every possible field. They fund research for AIDS, oncology, economics, and modern technology.

Nowadays, students have access to the Duke’s Blockchain Lab. This is a place specialized to get students acquainted with the blockchain technology, as well as provide them with opportunities for research. If you select this institution for your education, you can attend their many lectures, workshops, and interest groups, as well as discover great things about this trendy technology.

3.   MIT

MIT is the private university in Cambridge that is created for one purpose only – research. It’s the best known in the world and central to technological developments. Ever since the beginnings of the digital era, MIT has been on top of everything including AI, hackers, and open-source programming. Right now, it’s one of the best places to study blockchain technology. Their Media Lab’s Digital Currency Initiative is the perfect spot to do research projects, take part in blockchain groups, and write papers.

4.   Princeton University

Princeton is one of the oldest US universities. It’s a member of the Ivy League and one of the most innovative institutions in the world. It has excelled in the field of business, engineering, as well as technology. Right now, they have some amazing courses for Bitcoin, Cryptocurrency, and Blockchain.

See:  Blockchain’s potential will continue to spur public and private investment

5.   Stanford University

Stanford has been founded back in 1885 and ever since, it’s been fully dedicated to modern and updated technology. With its amazing facilities and courses, Stanford is considered to stand on the top of technological innovations. This is why it attracts more college candidates than any other institution in the country.

BTC and currency - Large Enterprises Are Betting On Blockchain In 2019

Image: Pexels

6.   University of California at Berkeley

UC Berkeley teaches everything from sustainable energy to computer processing. It is the teaching hub of some of the most successful experts in the technology fields. You may not know this, but the creators of Tesla and Apple both studied here.

Today, there’s a student-led organization at Berkley called Blockchain. It is specifically designed to study blockchain and other modern technologies.

Final Thoughts

Blockchain technology is the moving force in the modern tech world. Because of it, it is something you should definitely study if you want to succeed once you graduate. We hope that these college and university choices get you where you want to be. After all, they are your best chance at a bright, bright future!

Author’s Bio:

Robert Everett is a technology lover. He explores all modern technology, performs continuous research, and publishes his findings on the web for everyone to see. But, most of it all, Everett focuses on helping others find the best way to study technology.

You may also like:

 


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial

ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

Creating Trust in Cannabis

CannaProve | Paul Brousseau | Aug 9, 2019

Creating trust in Cannabis - Large Enterprises Are Betting On Blockchain In 2019

Globally, cannabis is only legal for consumption in Canada, Uruguay and some states in the USA.  However, after the legalization of both recreational and medical marijuana with edibles, cosmetics and beverages on the near-term horizon in Canada, it is expected that many other countries will follow to increase their tax base while attempting to reduce the impact of cannabis as a gateway drug. For example, countries, like Jamaica, have reduced the penalties on possession to minimal levels with the expectation it could be legalized at some future point. The global cannabis market is estimated to approach $250B by 2025.

While the legal changes to cannabis in Canada and parts of the US has created a vibrant legal market, there is still a substantial black market which can provide very good product at 33–50% cheaper. Much of this is attributed to the black market ignoring the ban of the use of pesticides during cultivation. As their product is not inspected nor under the same rules for accurate packaging, the cultivators use this advantage at the expense of consumers health. It is for this reason that there is a trust issue with cannabis — both for recreational and medical purposes.

See:  Cannabis & blockchain: Bad romance or a perfect match?

A critical turning point in this market will take place when a regulator finds a serious flaw in a supply chain. As we have seen with foods like lettuce and alfalfa sprouts, a single recall or non-compliance issue has huge impacts on the entire market as the perception of users is the entire supply chain system for all users is compromised.

An insurance policy for participants in the market is severely needed.

 

How do we solve the trust problem?

The first building block is having shared data between the stakeholders in a supply chain. Blockchain is the logical technology as it enables a single source of truth between all the stakeholders. We don’t believe that it is necessary or really possible to replace all the existing systems already in place in the supply chain. Rather, we suggest integrating existing systems through standardized APIs including seed-to-sale tracking and ERP software, logistics systems, lab testing applications, pharmaceutical systems and retail.

See:  Walmart China Takes on Food Safety with VeChainThor Blockchain Technology

Data quality needs to be ensured. For example, data from ERP systems may each be okay, but they might not match between two stakeholders. This is especially true with demand/forecasts. But what if the source data entered is bad? One can overcome this data reliance in a couple of ways:

  • The first is to get data from trusted machines — IoT sensor data — instead of relying on humans entering data. This assumes that one can authenticate the devices — a feature of smart contracts on blockchains. An alternative approach is to closely link people to transactions, in which stakeholders in the supply chain will be required to sign-in with a Digital ID — this could be augmented with biometric data — and this data can be stored with each transaction. In this way, if there is any fraud, there is a person responsible for oversight.
  • Another method is to validate the data versus prior data sets. For example, we could know how much longer/shorter this shipment took than history average. Although this helps, unless there is data about the fraud or data that points to the fraud, the systems cannot detect fraud. So what has to happen is that when a fraudulent activity is uncovered, the supply chain oversight group needs to uncover data that can identify this type of action. This new data, if historically available, should be used to identify past fraudulent activities.

 

Business opportunities made possible by a trusted network

  1. Decreasing Compliance Risks and Costs

Using the provenance data, compliance solutions can be delivered in four steps of incremental value: data completeness, regulatory oversight, electronic codification of the compliance rules and automated compliance reporting.

By gathering the chain of custody validation in one source, it helps compliance officers and regulators alike prove in a timely and cost-effective manner that product batches/lots were managed appropriately with full traceability.

CannaProve - Large Enterprises Are Betting On Blockchain In 2019

See:  A Digitized Staff Compliance Platform is a Must-Have

By working with leading legal and compliance firms, knowledge and operating guidelines can be streamlined and automated through code in smart contracts. Once in place and validated by regulators, automated reporting for each participant in the supply chain can be created for regulators.

 

  1. Leveraging Accurate, Shared Data for Revenue Increase

In a blockchain enabled environment actual demand orders is possible with the demand signal shared with all participants in real time. Also, with better and more timely demand signals, product mixes can be better optimized for greater profits, especially as user tastes become better understood and new products, branding and sales strategies and the like need to be introduced.

As demand is better fulfilled through more consistent and effective cultivation processes, brand management will be the next key battle ground for cultivators. With the full provenance data about their products, cultivators can utilize this same data augmented with social media data to provide metrics around competitive pricing and customer sentiment. In a market where the current range of prices from Good to Best is approximately 2x, there should be a potential increase of 70–80% in margins, if we compare cannabis to other consumable goods such as wine and cosmetics, which have a range of 10x.

For retailers, there is currently only relatively sparse provenance data on product packaging. Providing multiple views of the provenance will be a key element to drive up brand value through detailed information about the chain of custody. This is especially true for pharmaceutical companies and medical users, as well as recreational consumers looking to get organic or at least non-hazardous products.

See:  5 Missing Necessities to Move Blockchain from 0.2% Global Penetration to the Remaining 99.8%

 

  1. Fine Tuning Supply Chains for Profit Optimization

We are at the infancy of the global legal cannabis market with barely 1–2% adoption. We believe that, even as a highly restricted/controlled product, the market will mature into a global market whereby supply is no longer locally produced, as is the case with food and pharmaceuticals. On the face of it this is cost driven.

As a result of this coming globalization, there will be a great need to provide detailed, verifiable and immutable chain of custody information to regulators. However, once proven, we believe that the market will move towards a global supply chain. What this means is that supply chains will have more and longer planning cycles and complexity. It also means that they will have more options to optimize their profits if they can utilize data. We believe that organizations will be able to shift production from one facility to others to optimize profits affecting time to market, price and cultivation risks.

 

Paul Brousseau President CEO CannaProve - Large Enterprises Are Betting On Blockchain In 2019Paul Brousseau, President & CEO of CannaProve (www.cannaprove.com)

CannaProve is the recognized leader in solutions that empowers trust and knowledge across the global cannabis industry. CannaProve was founded on principles of improving life quality through the adoption of cannabis and all its derived health and wellness benefits. CannaProve proprietary software platforms offer a user-rich, simple to implement experience that enables cannabis supply chain participants to be agile and responsive to turbulent markets, while capturing maximum value.


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

Here’s The Case For A $100,000 Bitcoin Price By The End Of 2021

Forbes | Kyle Torpey | Aug 4, 2019

Julia chatterly interview with anthony pompliano - Large Enterprises Are Betting On Blockchain In 2019The Bitcoin price has been on a tremendous run in 2019, roughly tripling its price in U.S. dollars since the start of the year. That said, Morgan Creek Digital co-founder Anthony Pompliano thinks the party is just getting started.

Pompliano has predicted that the Bitcoin price will reach $100,000 by the end of 2021, and he was recently asked to explain his point of view during an interview with CNN’s Julia Chatterley.

Digital Gold and Loose Monetary Policy

In the past, Pompliano has described the trend towards loose monetary policy combined with Bitcoin’s upcoming halving event as the “perfect storm” for the rise of the digital asset. Pompliano explained this theory during his CNN interview.

See:  Check out the interview here on CNN with Julia Chatterly and Anthony Pompliano

“Whenever we get to a recessive period or kind of slowing growth, central banks have kind of two tools: They can cut interest rates, which they did yesterday, and they can print money (quantitative easing). And so, when they do both of those things, it usually takes anywhere between 6 to 18 months to feel the effect of those tools, and what it’s going to do is it’s going to coincide with the Bitcoin halving,” said Pompliano.

A halving event in Bitcoin is when the amount of Bitcoin that are generated by miners every ten minutes is cut in half. Bitcoin’s monetary policy was “set in stone” when the network went live back in 2009, and the scheduled issuance of new Bitcoin is halved roughly every four years.

Originally, 50 Bitcoin were created every ten minutes. Next year, the number of new Bitcoin created in each new block will drop from 12.5 to 6.25.

See:  Blockchain Technology and the UN: The Sustainable Development Goals

While gold has historically been viewed as a safe haven asset in times of monetary easing, Pompliano covered a couple of the benefits of Bitcoin over gold during his CNN interview.

“The difference is, between Bitcoin and gold, with Bitcoin, we know exactly how many is getting created, so 1,800 Bitcoin are going to be created today. The second thing is we know the total supply available, which is 21 million. So, it’s not: Hey I wonder how much is in the ground. We know exactly how much it is, and we can actually go and audit or verify the software code of the system,” said Pompliano.

Pompliano is Not Alone

It should be noted that, back in 2017, Pompliano also predicted a $100,000 Bitcoin price by 2019. However, he’s not exactly alone with his latest forecast for 2021.

Pantera CEO Dan Morehead has said there’s a “good shot” the Bitcoin price will hit $42,000 by the end of 2019, and the data used as the basis for his prediction is even more bullish than Pompliano’s $100,000 price point.

Continue to the full article --> here


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

The era of security tokens has begun

Venture Beat | Nabyl Charania and Carlos Naupari | Aug 4, 2019

digital coin - Large Enterprises Are Betting On Blockchain In 2019The excitement that initial coin offerings (ICOs) have created in the past few years has been marred by an onslaught of scams, hacks, and critical mistakes committed by careless investors. As it turns out, one of crypto’s biggest appeals — limited oversight and regulation — has proven to be its greatest vulnerability.

But cryptoassets are already coming of age. With the arrival of the security token offering (STO), the crypto space is beginning to reach an uncharted level of legitimacy in the financial community. We are about to witness perhaps even more disruption in markets and society than we’ve been promised.

What exactly is an STO?

The STO is the safe, secure, and sensible answer to the ICO. The word “security” in the name says a lot: Security tokens have to be backed by a tangible asset, like a company’s profits or shares. On the other hand, ICOs involve “utility coins,” which have the potential to amount to little more than a promise or a souvenir.

STOs also require licensing approved by the SEC and other regulatory bodies. In other words, security coins have the features and protections of traditional assets, such as a share of company stock, while also leveraging the benefits of being a digital asset. And virtually any kind of physical asset — real estate, equity, etc. — can be “tokenized,” or used to back a security coin.

See:  TokenFunder announces Canada’s first Security Token Exempt Market Dealer

Here’s why STOs will matter for crypto investment:

Security tokens accelerate the democratization of venture capital

For decades, the world of private equity was reserved exclusively for venture capital firms and accredited investors — individuals with a net worth of at least a million dollars or with an annual salary of at least $100,000. But when Title III of the JOBS Act went into effect in May 2016, suddenly anyone could invest in private companies. It was a major win for everyday investors, and several equity crowdfunding portals opened up, showcasing many compelling opportunities in private equity.

Then 2017 happened. The advent of cryptocurrencies, blockchain technology, and smart contracts opened up an even more efficient way for entrepreneurs to raise capital without the use of a middleman, as well as the promise of a more equitable and democratized private equity landscape. While its ICO was accessible to the public, not just accredited investors, messenger app Telegram raised $850 million, marking one of the largest fundraising events in the history of tech.

Companies like Securitize, Polymath, and Harbor have become leaders in the movement to tokenize all kinds of traditional assets into security tokens. As a fundraising vehicle, security tokens allow companies to raise capital without having to lean on investment banks and stock exchanges as intermediaries. Spice VC, for example, is a tokenized fund, as is Blockchain Capital.

Given the oversight from the SEC and other regulatory bodies that security tokens are subject to, investors are able to invest in an opportunity without worrying about being scammed. Their only concern is the financial success of the company, as is the case with stock ownership. The financial regulatory framework in the U.S. creates a favorable landscape for STOs to thrive. The already corporation-friendly state of Delaware stands out in particular, as it now allows companies to write shares on a blockchain.

See:  UK Financial Conduct Authority Provides Final Guidance on Cryptoassets: Better Defines Utility Tokens

Above all, security tokens give companies an efficient way to raise capital from a broader investment pool than has ever been possible. This means innovation is accelerated and more people stand to benefit from a company’s success. Of course, easier access to capital creates a more competitive landscape, so companies that are doomed to fail will realize this inevitability sooner.

Traditionally illiquid investments are made liquid

As the old adage goes, it takes money to make money. But the advent of blockchain may do away with that notion. Before, several investment classes — including those with the highest and most bankable returns — had a prohibitively high barrier to entry.

Thanks to the technological breakthroughs of security tokens, this is no longer the case. Distributed ledgers enable the tokenization of otherwise illiquid assets, such as real estate and fine art. Security tokens allow fractional ownership, and the issuer determines how fractional that ownership is. This means virtually anyone who wants to own real estate in a place like Manhattan, for example, is able to. Even the most expensive piece of real estate, once it’s tokenized into a security token, can be divided into portions that anyone can afford. The same goes for fine art and other asset classes previously reserved for the super wealthy.

One might think this is comparable this to owning shares of a real estate investment trust (REIT), but becoming an owner of tokenized real estate offers far more flexibility, as you have more autonomy over the properties you own.

See:  OurCrowd Double IPO Success Provides Crowdfunding Validation

But everyday investors are not the only ones who win in this case. If you’re the owner of a multimillion dollar piece of property or a rare Cézanne and you want to turn it into cash, it can be difficult to find an individual with both the net worth and the interest to take it off your hands. By tokenizing whatever expensive piece of property it may be, the ownership can be divested to dozens or even hundreds of investors who may want to lay claim to it. That way, a valuable and expensive piece of property is no longer destined to sit around and collect dust.

The first known prominent example of this is the iconic Andy Warhol painting “14 Small Electric Chair” (1980), which was tokenized and offered for fractional ownership by the decentralized art gallery Maecenas. It certainly won’t be the last.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019

 

Bitcoin is an Unstoppable Force

Daily Fintech  | | July 29, 2019

BTC quarterly price change - Large Enterprises Are Betting On Blockchain In 2019

TLDR. During the recent House Committee on Financial Services’ hearing about Facebook’s, Libra, Rep. Patrick McHenry described Bitcoin as an unstoppable force:

“The world that Satoshi Nakamoto — author of the Bitcoin white paper — envisioned, and others are building, is an unstoppable force. We should not attempt to deter this innovation, and governments cannot stop this innovation, and those who have tried have already failed. So the question then becomes, what are American policymakers going to do to meet the challenges and the opportunities of this new world of innovation?”

Today, the entire market cap of digital assets was around $263 billion. Digital currency market caps, coin prices, and overall trade volumes have dropped since June. Looking at what’s been happening over the last few months, the question on everyone’s mind is how is this time different from the past, when Bitcoin reached highs and then came down crumbling.

Well, many things are different.

One of the things is that most of investing is not happening by retail investors, as it did in 2017. Google searches for “Bitcoin” are only 10% of what they were in 2017. FOMO by retail investors has not really kicked in yet. I can only imagine what will happen with the price of BTC when it does.  Source: google trends

Another thing that’s different is institutional demand for Bitcoin. Its soaring. Institutional interest is high, as booming derivatives trading on CME can attest. On June 17, open interest at CME Group saw 5,311 contracts totaling 26,555 BTC, approximately $246 million, dwarfing the volumes during the 2017 price peak. Fidelity, Bakkt, and TD Ameritrade all have plans to launch institutional trading products for BTC.

See:  Visa Makes Its Second Investment Into a Crypto Startup

More importantly, network fundamentals better than ever. Hash rate has increased, driving up security. Security is measured by how much it costs to mount a 51% attack on Bitcoin. The more hash rate, the more security. Over the past five years, Bitcoin’s hash power has increase 1000x, growing to 70 million trillion hashes per second.  Source: blockchain.com

The increase  of daily on-chain transactions and block size, indicate that more people are transacting. Both the on-chain transactions per day (line below) and average transaction value in USD (fill below) have risen significantly since last year.  Source: coinmetrics

The average BTC block size (fill below) has increased substantially, when you compare it to last year’s.

Best of all, average transaction fees have been relatively low, compared to those in 2017. Currently its around $1.92, despite increased block size and on-chain use. Scalability have kept fees substantially lower than late in 2017.

historical daily average bitcoin transaction fee - Large Enterprises Are Betting On Blockchain In 2019

Source: bitcoinfees.info

All this is happening almost a year before Bitcoin’s block reward halving, which set for May 2020. Next May, mining rewards will be reduced from 12.5 to 6.25 BTC, which will reduce the number of Bitcoins minted when a block is verified, and the number of Bitcoins potentially sold to the market.

See:  A Global Review Of The Regulatory Considerations Relating To Crypto-Asset Trading Platforms

As Bitcoin’s supply gets tighter and tighter, its inflation rate drops. Unlike governments that can print fiat currencies and risk inflation, Bitcoin’s inflation rate by 2024, the will drop under to 1% and over time it will decrease toward zero.

Today, the number of Bitcoins in circulation is  17.8 million Bitcoins. There will only be 21 million Bitcoins ever issued and we will not reach that number for another 120 years. While we only have another 3.2 million Bitcoins that will ever be created, this limited supply does not restrict Bitcoin’s use as a medium of exchange. Each Bitcoin is equal to 100 million Satoshis. So, if Bitcoin’s price ever reached $1 million, one Satoshi would be worth just a penny.

And it not the only thing that’s happening.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Large Enterprises Are Betting On Blockchain In 2019 The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Large Enterprises Are Betting On Blockchain In 2019FF Logo 400 v3 - Large Enterprises Are Betting On Blockchain In 2019community social impact - Large Enterprises Are Betting On Blockchain In 2019
NCFA Fintech Confidential Issue 2 FINAL COVER - Large Enterprises Are Betting On Blockchain In 2019