Jump to content
Sign in to follow this  
Miss Behavin

Blockchain for business

Recommended Posts

Delaware allows corporations to use blockchain to create & maintain transaction records

 

The “corporate capital of the world” has just made it legal for corporations to use blockchain technology for stock trading and record-keeping. At the same time, a digital currency trading platform has been authorized to provide clearing services.

On Friday, Delaware Governor John Carney (D) signed a bill that allows state corporations to “use networks of electronic databases (examples of which are described currently as 'distributed ledgers' or a ‘blockchain’) for the creation and maintenance of corporate records, including the corporation’s stock ledger.”

 

A Blockchain, also known as a distributed ledger, is a digital record of transactions between parties on a network.Traditionally, corporations have relied on intermediaries like clearinghouses, custodians, exchanges, fiduciaries, or banks to settle transactions. Each intermediary had to verify transactions with their own ledgers, which adds time and cost to each transaction.

With the blockchain, a ledger is shared among a large group of peers who collectively record all transactions digitally and validate transactions without the need for a third party. Since the blockchain is shared among such a large number of peers, who each maintain a complete ledger with a full history of transactions, and that record is constantly being updated, it would be nearly impossible to manipulate.

Without the need for a third party, a corporation can also verify transactions anywhere in the world without the need for any fees. Transactions that would take days or even weeks with traditional ledgers can be settled in minutes with the blockchain.

Introduced in March, the bill amends the state’s General Corporation Law, which is “the most advanced and flexible business formation statute in the nation,” according to the state's website.

 

The Delaware Economic Development Office claims that nearly 1 million business entities, including more than half of all US publicly-traded companies and 60 percent of Fortune 500 companies, have made Delaware their legal home.

The new blockchain rules will go into effect by August 1, 2017.

 

“LedgerX will be authorized to provide clearing services for fully-collateralized digital currency swaps,” the announcement said, adding that LedgerX “initially plans to clear bitcoin options.”

 

Paul Chou, CEO of LedgerX, said the CFTC announcement “opens the market to a much larger customer base.”

 

“We are seeing strong demand from institutions that previously could not participate in the bitcoin market due to compliance restrictions against unregulated venues. In particular, there is a desire for fund managers to hold financial instruments that are not correlated with the broader equity market, and digital currencies meet that need,” Chou said, according to CNBC.

 

https://www.rt.com/usa/397397-blockchain-delaware-bill-passes/

Share this post


Link to post
Share on other sites

This is a game changer for investors since it drives costs down improves transparency and has better security. Nice to see the regulators slowly coming on board

Share this post


Link to post
Share on other sites

SEC declares digital assets can be "securities" under U.S. law

 

WASHINGTON (Reuters) - Wall Street's main regulator said on Tuesday that initial coin offerings (ICOs), a means of crowdfunding for blockchain technology companies, should be subject to the same safeguards required in traditional securities sales.ICOs have become a bonanza for digital currency entrepreneurs by allowing them to raise millions quickly by creating and selling digital "tokens" with no regulatory oversight.

 

But the Securities and Exchange Commission (SEC) has declared that the tokens can be considered securities, and therefore, may be need to be registered unless a valid exemption applies. The decision means that blockchain startups can no longer ignore investor protections, making it potentially more difficult for them to fundraise via coin sales. By mid-July, tech firms raised about $1.1 billion in 89 coin sales this year, roughly 10 times more than that in the whole of 2016, according to data compiled for Reuters by crypto-currency research firm Smith + Crown.

 

The SEC's decision was released in an investigative report into a virtual organization known as The DAO. The DAO was created in April 2016 by a blockchain solutions company called Slock.it.

A blockchain is an online ledger of transactions maintained by a network of computers which gained prominence as the technology that underpinned digital currencies such as bitcoin. The DAO was designed as a decentralized crowdfunding model in which anyone could contribute ethereum tokens to be a voting member and have an equity stake in the organization. Ethereum is another cryptocurrency.

 

Although it raised $150 million as of late May last year, an anonymous hacker later funneled $60 million of the tokens into a separate account. The SEC said in its report it has decided not to bring civil charges at the end of its probe into The DAO, but instead use the case as a cautionary tale for the market.

 

https://www.reuters.com/article/usa-sec-digital-idUSL1N1KG1XU

Share this post


Link to post
Share on other sites

The SEC Ruling Should Be Positive, Not Negative For Bitcoin, Ethereum, And Litecoin

 

Digital currency traders have it wrong. The SEC ruling that treats digital currencies as common investments is positive, not negative for cryptocurrencies, at least for now.

 

Cryptocurrencies traded sharply lower on Tuesday, following an SEC ruling that cryptocurrency “IPOs” or Initial Coin Offerings (ICOs) are investments, and therefore, should be subject to the same rules as regular stocks.

 

That would certainly slow down the pace of ICOs and the money that flows into digital currencies, and therefore, cool off investor enthusiasm.

 

While this is true for new digital currencies on the ICO pipeline, it isn’t true for the existing digital currencies. In fact, the slow-down of ICOs will limit the supply of digital currencies at a time when they are gaining traction as a medium for exchange. That’s certainly bullish, not bearish, for such existing digital currencies, as Bitcoin, Ethereum, Litecoin etc.; and a short-term rebound should be imminent.

 

Still, governments consider digital currencies a threat to their monopoly on printing money. And the SEC ruling may be just the beginning of more regulations to come, undermining the very existence of legitimate digital coin exchanges.

 

That’s something investors should keep in mind before pouring more money into digital currencies.

 

forbes

Share this post


Link to post
Share on other sites

Tencent Taps Intel's Hardware for IoT Blockchain Solution

 

Chinese internet conglomerate Tencent announced a blockchain research partnership with multinational tech corporation Intel at a conference yesterday.

The deal, which will see a new R&D lab established in Wuxi, Jiangsu Province, aims to fuse Intel Core technology with the Tencent User Security Infrastructure (TUSI) standard to develop a secure blockchain system for the Internet of Things (IoT).

The effort aims to develop accounts secured by "hardware keys and blockchain," so that IoT devices can "enjoy unified security capabilities," a local news source states.

Intel has been pursuing blockchain technology for some time, with a particular emphasis on its own hardware-based security. As reported by CoinDesk, the firm uses so-called "software guard extensions" (SGXs) to create secure enclaves within its processors to protect vital data.Tencent, which notably developed the WeChat messaging app, also has a history with blockchain technology. Back in April, the company released a white paper detailing a suite of blockchain services currently in development. And, in June, the firm revealed work with Bank of China on a blockchain research effort.

 

https://www.coindesk.com/tencent-taps-intels-hardware-for-iot-blockchain-solution/

Share this post


Link to post
Share on other sites

HSBC Completes First Trade-Finance Deal Using Blockchain, Opening $9 Trillion Market For Mass Adoption

 

Just a few hours after German online bank Bitbond announced it now allows users to transfer loan anywhere in the world using bitcoin and other cryptos , a move which we said would result in a rapid adoption of blockchain technologies within the bank-disintermediation space, the FT reported that in a somewhat parallel transaction, UK-based banking giant HSBC has completed the world’s first commercially viable trade-finance transaction using blockchain, in the process opening the door to mass adoption of the technology in the $9tn market for trade finance, a process which ironically culminates with traditional banks such as HSBC becoming disintermediated from the fund flows process, i.e., obsolete.

HSBC said the blockchain trade, which processed a letter of credit for US food and agricultural group Cargill, had shown the platform was ready to be commercially adopted across the industry.

In many ways the news will be welcome, especially when it comes to trade finance: traditionally one of the most convoluted and burdensome pillars of modern finance, one which has been deeply in need of disruption.

As a result, the FT notes that the introduction of blockchain "is expected to shake up the centuries-old trade-finance industry, reducing the numerous documents and several days of processing needed for a single transaction to a paperless task that can be completed in hours."

And, as Vivek Ramachandran, head of innovation and growth for commercial banking at HSBC, said, "the next stage is actually encouraging as many participants as possible to sign up to the utility" adding that banks, shipping companies, ports and customs operations would have to take up the same technology before it could gain widespread usage. "We don’t envisage the platform as anything other than a utility."

Think of blockchain is to trade finance as DTCC was to old-school stock certificates (incidentally, blockchain is set to revolutionize DTC as well).

In trading hubs around the world, banks such as HSBC still operate trade-finance floors filled with stacks of paper documentation for trade. Blockchain transactions will greatly reduce these operations in the coming years, Mr Ramachandran said. HSBC took in $2.52bn in trade-finance revenue last year, making it one of the world’s largest banks in the industry.

 

 

 

https://www.zerohedge.com/news/2018-05-13/hsbc-completes-first-trade-finance-deal-using-blockchain-opening-9-trillion-market

 

 

This is going to upset a few apple carts !

Share this post


Link to post
Share on other sites

Pretty cool stuff!

 

I've got a client that asked me to do a POC on a blockchain implementation... Which I did... now we wait.

 

I do however think that there are people jumping on the blockchain bandwagon and using blockchain for blockchains sake in a lot of scenarios.

But, it the tech industry buzz words and "new" stuff has always had this effect.

Share this post


Link to post
Share on other sites

I agree with you, having said that it will have major impact on financial markets and how securities settle which will have a knock on effect on custodians and banks

Share this post


Link to post
Share on other sites

By way of an update market is now talking Block chain 3.0 some interesting startups in the space

 

Stackr (https://www.gostackr.com/

What happens to your Crypto when you die ???

Stackr allows you to designate beneficiaries to receive your assets without going through a possibly lengthy and expensive probate process and estate taxes. In many jurisdictions, moving assets between crypto and traditional investments can trigger unnecessary taxable events. Stackr can be isolated from such events due to the trust structure, which means that it is only when you really need your money and remove it from the trust that you might pay any tax. Stackr is a secure long-term crypto and US$ savings solution that cuts out the middleman. Combining traditional finance with modern-day financial technology & expertise has enabled Stackr to pioneer this innovative, secure and flexible savings solution for the blockchain community.

(These are South Africans that run a very cool shop !) 

 

 

Celsius Network  (https://celsius.network/

Celsius is banking on the blockchain. Its borrowing and lending platform will allow users to earn up to 5% interest on their crypto while taking loans at 9% interest, using their crypto as collateral. Celsius Network’s goal is to bring the next 100 million people into crypto, ultimately becoming the first killer app in the space. Risky or not, this is one to keep an eye on. This FinTech startup is primed to disrupt traditional banking.

 

Gameflip   (https://gameflip.com/flp) is an online marketplace backed by Silicon Valley venture capital. It allows gamers to transact any type of digital goods, and currently has 3 million members. After successfully hitting its token-sale hard cap, the FLP utility token can now be used to transact digital goods within the Gameflip marketplace. In the coming months, pilot program partners and publishers will begin integrating the Gameflip SDK, which will enable the transactions of approved in-game goods via the Blockchain.

(Basically trading gaming stuff...wow)

 

ADBIT

The ADBIT token will be the core function of CIINCH Media Marketplace, the world’s first blockchain-powered media planning and buying platform for traditional media (print, TV, radio and out-of-home) assets. CIINCH and ADBIT were created to help automate the multiple layers of manual processes that currently plague the industry. Traditional media has failed to innovate and adapt to the current state of our age. Highly fragmented and operating on legacy software developed in the 1990's, ADBIT and CIINCH aim to bring these processes into the present.

(Here we are trading media space....trade everything !!! ) 


 

 

 

 

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites

With all the pain being felt in the crypto currency space its interesting to note how the market is maturing. The market for STO's is huge !!

 

Security Token Offerings – the next Multi-Billion Dollar Market in 2019?

 

Initial coin offerings (ICOs) were all the rage in 2017, raising a massive US$5.6 billion, but this year saw the emergence of the security token offerings (STOs), a market that’s predicted to be worth some US$10 trillion by 2020.

In opposition to tokens offered in an ICO which do not give any rights or obligations and instead provide access to a specific network, platform or service, tokens offered in a STO are actual financial securities that are backed by something tangible like the assets, profits, or revenue of the company, and which offer legal rights such as voting or revenue distribution.

A security token performs the same function as a conventional security, except that it confirms ownership through blockchain transactions

 

http://fintechnews.ch/blockchain_bitcoin/security-token-offerings-the-next-multi-billion-dollar-market-2019/23849/

 

  • Thanks 1

Share this post


Link to post
Share on other sites

Now this is very clever...Abra is a populat crypto platform but what they have now done is to link listed assets to a type of crypto ETF that tracks major listed assets....check out the story below. 

 

https://www.abra.com/

 

Since Abra runs on bitcoin, it automates all of its processes like asset holding, hedging, and user transactions with smart contracts. It supports 30 cryptocurrencies, 50 fiat currencies, and is led by crypto/finance leaders like Bill Barhydt/CEO (formerly a VP at Goldman Sachs and Technical Director at Netscape) and Daryl Puryear/CTO (formerly Director of Software at Mint.com and VPE at Motif.)

 


How does their new product work?
Essentially, Abra has taken its existing platform and extended it to support assets available on the NASDAQ, starting with the top 100 stocks and ETF’s.  
Once users invest capital into the platform, they can choose to “invest” in one of Abra’s 100 stock/ETF offerings, which represents stock investment exposure in corporations like Facebook, Apple, Amazon, and Alphabet/Google. As soon as a user adds money to the Abra app, the capital is immediately transformed to bitcoin. Then, using Abra’s crypto-collateralized contract, Abra keeps the notional value of that bitcoin investment tied to the current value of the stock. This is done with what’s called a multisig bitcoin address, where Abra and the user sign a contract to peg the amount of cryptocurrency to the value of the asset. Abra users then hold an asset that track the exact price and volatility of the given stock.
While users don’t actually hold any shares in the company they still receive dividend payments because of the means by which Abra hedges itself on the contracts — super cool. The platform can also support short selling which Abra hopes to offer in the future.
Why does this make electronic stock investing any different?
The mechanism by which Abra enters into these smart contracts means that Abra can offer this investing service legally in 155 countries. That is a first for investing in US stocks, commodities, cryptocurrencies and fiat currencies via a single service.
The SEC and CFTC have clarified that the definitions of the terms “swap” and “security-based swap” do not include forward contracts. These definitions exclude “any sale of a nonfinancial commodity or security for deferred shipment or delivery, so long as the transaction is intended to be physically settled.” These organizations later provided guidance on how this physical settlement exemption applies to Bitcoin. Abra operates under this exemption.
This means that Abra’s investing tools are much less regulated than other trading mechanisms. Since other online stock trading platforms like Robinhood, TDAmeritrade, or Charles Schwab actually invest user assets in real stocks and act as a full broker and custodian, they do have to follow rules set by the CFTC, SEC, and other securities commissions. But Abra’s model means they can expand the market of pseudo-stock-investing globally, beyond these specific geographic boundaries.

 

What are the greater implications?
Abra’s company ethos is democratizing finance. Their entire value is built off of being a platform where a first-time investor from the developing world can make the same returns as the hot-shot finance guys from New York. Abra’s new offering helps accomplish that by introducing pseudo-stock-trading to hundreds of new markets, making it a feasible investment mechanism for people in 155 countries globally. 
Abra’s new tool might also affect the price of bitcoin. On Abra, all users become “hodlers,” crypto-speak for someone who holds onto bitcoin without regularly trading it for other currencies and assets. Past financial studies have found that hodling is one of the key driving factors behind bitcoin’s price fluctuations. Since Abra’s platform automatically converts user capital to bitcoin, all users become hodlers and thus could, at large scale, drive changes in the price of bitcoin. Depending on how many people hop onto Abra’s new platform, we might see a short- or long-term spike in the price of bitcoin as more people use bitcoin as the underlying means for their every day stock and ETF investing. 
 

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites

I did not see this coming !! Both Std Bank and JPMorgan launching blockchain payment solutions....wow

These events matter because it makes moving money around much cheaper and faster....it benefits us the consumer ultimately  

 

 

Standard Bank builds blockchain for international payments

"The platform aims to increase the speed and transparency of international payments and trades by providing an instantly-available record of documents and settlements stored in the cloud. "

 

https://mybroadband.co.za/news/banking/297786-standard-bank-builds-blockchain-for-international-payments.html

 

JPMorgan's move into crypto puts the rest of the industry on notice

"Blockchain is particularly appealing because it could allow banks to clear payments faster and more securely, using technology that CB Insights said would dramatically cut processing times and reduce the need for third parties to get involved with transactions."

" With the launch of JPM Coin, JPMorgan has shown it wants to get out in front of this transition, despite its previous skepticism.

That could push other banks to show they're in the game, too. Singh said banks that have a large number of institutional clients, such as Citigroup (C), will feel the most pressure."

 

https://edition.cnn.com/2019/02/19/business/jpmorgan-jpm-coin-banks-blockchain/index.html

 

  • Thanks 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

×
×
  • Create New...