Blockchains For Executives, Mobile Payments And Building A New Internet
Off The Blocks, Vol 33
|Sep 19, 2018|| 1|
Volume 33, September 18, 2018
Blockchains have the potential to store over 10% of our global GDP, ~ $8 Trillion in value. At Proteum, we are dedicated to understanding tomorrow's "Internet of Value". This newsletter is our weekly roundup of some of the significant blockchain news this week. News we think is worth sharing for you to map your blockchain strategies, be aware of regulatory announcements and get an overview of the rapidly changing blockchain landscape.
Quote of the Week
“A couple of years ago the narrative was blockchain good, crypto bad. But I think what we’re now seeing is that more and more regulators are taking the whole space in one conjunction [sic]. You cannot have runways built without airplanes… [T]hat narrative is thankfully changing and policymakers are recognizing there is a strong benefit that digital (crypto) assets bring.”
- Sagar Sarbhai, Regulatory Affairs (Asia-Pac & Middle East), Ripple
Amid intensifying regulatory scrutiny of cryptocurrencies and blockchain ventures, some of the sector’s leading startups and investors have formed the Blockchain Association, a lobbying group that will try to amplify their influence in Capitol Hill and around the country. The assortment hopes that concerns about consumer protection, fraud, manipulation and the like from regulators around the world are many areas that the crypto and blockchain technology can be put to use.
The objective is to create a pro-innovation environment for the industry, meeting the growing global demand for accessible, transparent and democratic financial and technical systems. This could be possible if the cryptocurrency community and industry leaders would build a strong relationship that together will be able to educate the regulators and consumers about the up and coming technology and advance policies and regulations that enables innovation via crypto assets and decentralized systems.
It is understandable why there needs to be some regulations to restrict the use of blockchain technology that is used in promoting any form of investment. What could be of utmost benefit to the industry is if a unified regulatory framework was implemented. This was attempted in March when members of the G20 met to discuss the future of cryptocurrencies on the international stage.
DADI (the Decentralized Architecture for a Democratic Internet) is a global blockchain startup has already accrued nearly $30 million in funding, all in an effort to create a “new internet” where everyday households can become bigger contributors to cloud computing. DADI hopes to serve as a decentralized network that will allow users to create, store and provide content — hearkening back to the principles of equal distribution that helped foster the internet’s creation.
As a CMO, your primary focus is to keep the business running and do your best at it. Consequently, when dealing with a new, promising technology, the person in charge must first analyze the fundamentals of blockchain before leveraging it into their business. In doing so, considering possible threats that could harm their organization is a crucial aspect.
Satoshi Nakamoto invented the Bitcoin blockchain as a way for people to make financial transactions without the need for banks or governments. So it’s ironic that one of the world’s biggest boosters of blockchains—shared cryptographic ledgers inspired by the one that underlies Nakamoto’s invention—is the World Bank, which is owned by governments.
At other top universities across the country, students are anxious to enroll in courses focused on the proliferation of blockchain, a decentralized ledger technology that underpins cryptocurrencies like bitcoin. "In order to understand blockchain well, you actually need to learn a bunch of subjects that we already teach in the university, things like economics and finance and law and distributed systems in engineering."
Japanese telecoms giant Softbank Corp. has completed a blockchain proof-of-concept (PoC) that allows P2P mobile payments across different carriers. The system is intended to be deployed among mobile carriers in an effort to replace the traditional SMS text messaging system with a richer pool of features, such as sending multimedia content, documents and voices calls via carrier networks instead of mobile apps.
Traditionally, CFOs have three key roles: execution, enablement and development. These roles comprise six segments: trusting the numbers, providing insight, getting your house in order, funding organizational strategy, development of business strategy and communication to the external marketplace. Blockchain has the potential to impact each of these segments, redefine the traditional CFO role and revolutionize the finance function.
Blockchain Trust company Paxos has launched a U.S.-dollar backed stablecoin following approval from New York regulators. Backed 1:1 by the dollar, the Ethereum blockchain-based stablecoin, dubbed ‘Paxos Standard,’ has been approved by the New York State Department of Financial Services (NYDFS), which will exercise regulatory oversight over the asset’s issuance and trading.
Paxos co-founder and CEO Charles Cascarilla says he believes the new asset “improves on the utility of money" by fusing the stability and robust regulatory oversight of traditional fiat currencies with crypto’s promise to create frictionless flows of digital value. “When Paxos Standard tokens are in circulation, the corresponding dollars are held in reserve. Upon redemption for dollars, Paxos Standard tokens are immediately destroyed."
Proteum is global blockchain advisory firm that works with public, private and start-up companies to help them transition into the world of blockchains and decentralized applications. We help companies strategically build their capabilities so that they can own and control their future. Let's put blockchains to work for your business.
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