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Money is a means to exchange value. It has come a long way, from shells and clay tablets to the complex financial system we have today. But coins, bills, and bank balances aren’t money’s final form — enter blockchain digital assets. Digital assets are intangible, electronically stored files or information with economic value. Examples include cryptocurrencies, software, domain names, social media accounts, website content, and digital photos. Blockchain digital assets are a specific subset of digital assets that are built on blockchain technology. In this context, blockchain serves as a transparent and tamper-resistant system for tracking ownership and transactions. Here, you’ll learn about the nine main types of blockchain digital assets as well as their uses, benefits, and most well-known examples. 1. Cryptocurrencies Cryptocurrencies are digital or virtual currencies that use cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies operate on . blockchain You can securely, as transactions are recorded on the blockchain. Cryptocurrencies provide a borderless, efficient, and censorship-resistant alternative to traditional currencies, challenging conventional financial systems. buy, sell, and trade cryptocurrencies Here are some examples of cryptocurrencies: is the first and most well-known cryptocurrency, created in 2009. It operates on a decentralized peer-to-peer network, allowing for secure and transparent transactions without the need for intermediaries. Bitcoin (BTC) uses advanced cryptographic techniques to provide improved privacy and anonymity for its users. Zcash (ZEC) is both a digital payment protocol and a cryptocurrency designed for fast and low-cost cross-border transactions. Ripple (XRP) 2. Stablecoins Stablecoins are a type of cryptocurrency designed to minimize price volatility by pegging their value to a stable asset, often a traditional currency like the US Dollar. This stability makes them a reliable and popular choice for everyday transactions, such as digital payments and remittances, and as a store of value in the crypto space. Stablecoins’ popularity grew quickly, surpassing at its peak in 2022, compared with $12 billion two years prior. The total circulating supply currently sits at $139 billion. $180 billion in circulating supply There are two types of stablecoins — . While centralized stablecoins are collateralized by deposits of cash or equivalents, decentralized stablecoins are backed by other cryptoassets held in . centralized and decentralized smart contracts Here are some stablecoin examples: is pegged to the USD and backed 1:1 by US dollars held in regularly audited reserves. Tether (USDT) was created on the Ethereum blockchain. Its value is stabilized through a system of smart contracts and collateral, allowing it to maintain a peg to the US Dollar without direct fiat backing. Dai (DAI) is designed to maintain a 1:1 peg with the Euro and is backed by a 1:1 ratio reserve of Euros. STASIS EURO (EURS) 3. Securities Tokens A security is essentially a contract. Consider a basic stock; if you own one, you have a contractually granted share in an enterprise. This entitles you to a portion of the cash flow if the enterprise pays dividends, and you may also have the right to vote on certain matters related to the enterprise. Securities tokens have the potential to transform the stock, bond, and derivatives markets because all these actions can be programmed and automated in a token, making them run more efficiently, inclusively, and fairly. There are two main types of securities tokens: Traditional finance entities like asset managers or investment banks create stocks and bonds and record ownership on a blockchain and on an off-chain registry. TradFi-issued tokens: These are digitally native securities, such as and DeFi investment funds. DeFi securities tokens and funds: derivatives contracts Both TradFi-issued and DeFi securities tokens are subject to regulatory scrutiny under the legal frameworks governing traditional securities. Here are some examples of securities tokens: tokenizes venture capital investments. Investors holding tokens gain access to a share of the profits from a portfolio of startup investments, providing liquidity to traditionally illiquid venture capital assets. SPiCE VC SPiCE tokenizes real estate assets, allowing investors to buy and sell fractions of real estate properties. holders may receive dividends or a share of rental income from the underlying real estate. Harbor HBR tokenizes equity in traditional companies, allowing investors to buy and sell shares on the blockchain. token holders have economic rights and may receive dividends from the companies represented in the Neufund ecosystem. Neufund NEU 4. Protocol Tokens Protocol tokens are digital assets tied to a specific blockchain or protocol. Unlike traditional cryptocurrencies like Bitcoin, which serve as Internet cash, protocol tokens give you access, governance, or utility within a blockchain network. This is because most blockchain protocols were built to run and smart contracts. To deploy and utilize dapps on these networks, developers and users must pay transaction fees, normally using protocol tokens. decentralized apps (dapps) When utilizing dapp-supporting blockchain networks like Ethereum, you must pay transaction fees, commonly referred to as “gas fees,” in the native token of the respective protocol, which, in the case of , is . Similarly: Ethereum ETH transactions incur fees in . Solana SOL transactions require fees in . Cosmos ATOM transactions involve fees paid in . Avalanche AVAX transactions are subject to fees in . Polygon MATIC 5. Governance Tokens Governance tokens are digital assets that grant holders the right to participate in the decision-making processes of a or protocol. decentralized autonomous organization (DAO) Owners of these tokens can vote on proposed changes, upgrades, or other governance matters related to the blockchain or DAO. They also get a say in the allocation of resources from their common wallet. Governance tokens allow a community to collectively steer the direction of a decentralized system, promoting a more democratic and decentralized decision-making model. Here are some examples of governance tokens: Holders of get to oversee alterations to protocol logic and decide on the distribution of governance funds. Uniswap’s UNI token uses its for managing the incentive framework, determining how fees are paid, and establishing the long-term earnings approach for liquidity providers. Curve DAO CRV token Holders of can weigh in on decisions regarding the inclusion of assets and adjustments to collateral factors, the interest rate model, and more. Compound’s COMP token 6. Exchange Tokens Exchange tokens are digital assets native to . Their value lies in their functionality since users need to exchange tokens to use these platforms. centralized crypto exchanges (CEX) In addition, they improve liquidity and provide rewards, discounts, and other incentives to keep using that exchange. Exchange tokens are similar to governance tokens of , but are more centrally managed and don’t offer governance rights. decentralized exchanges (DEXs) Still, some view them as a form of “equity in the company” because the platform's success correlates with the appreciation of your tokens. Examples of exchange tokens include: Binance's BNB OKX’s OKB iFinex's LEO Cronos’ CRO KuCoin’s KCS 7. Non-Fungible Tokens (NFTs) Fungible tokens are interchangeable and identical, like money. Each unit is the same, and one unit can be exchanged for another without any difference in value. Examples include traditional currencies like the US Dollar or cryptocurrencies like Bitcoin. Non-fungible tokens (NFTs) are unique and can’t be exchanged on a one-to-one basis. Each token has distinct information or attributes, making it different from others. NFTs are used to represent ownership or proof of authenticity for specific digital or physical items like art, collectibles, virtual real estate, and more. These tokens have gained popularity in the digital art world, allowing artists and creators to tokenize and sell their work while buyers gain ownership with a verified and unforgeable on-chain certificate of authenticity. Here are the ten to date: most expensive NFTs 8. Natural Asset Tokens Natural assets like water, air, and carbon are essential for life on Earth and the economy. However, they’re commonly exploited and overused since there’s no way to control their consumption. Blockchain allows us to tokenize and govern the use of these assets transparently and verifiably. Natural asset tokens can then be utilized to incentivize the sustainable management of our natural capital. For instance, a conservation NGO could purchase a plot of land to ensure its long-term protection and divide it into on-chain tokens. Conservation activists, climate investors, and other people could purchase these tokens to support conservation efforts and potentially make a return on their investment if that plot of land appreciates in value. For example, is protecting natural assets and gamifying conservation efforts by selling . Ecosapiens artwork NFTs backed by CO2 Another example is . It sells to fund the purchase and protection of swaths of rainforest land. Fund the Planet Rainforest Token NFTs 9. Central Bank Digital Currencies (CBDCs) A Central Bank Digital Currency (CBDC) is a digital version of a country's official currency issued by its central bank. Unlike cryptocurrencies, CBDCs are centralized and government-backed. They serve as digital representations of traditional money, enabling electronic transactions and payments. CBDCs aim to boost financial inclusion, reduce transaction costs, and provide the central bank with more efficient tools for monetary policy. Users can access CBDCs through , facilitating secure and instantaneous transactions while maintaining the stability and trust associated with traditional fiat currencies. digital wallets However, it’s crucial to ensure CBDCs allow for anonymous transactions and preserve user privacy. For instance, there are concerns that might use its to as part of its social credit scoring system. China digital renminbi (e-CNY) monitor how people spend money As of early 2024, , including and . Additionally, 21 countries are testing CBDCs, 33 are developing them, and 46 are in the research phase. 11 CBDCs are active globally Nigeria's eNaira Jamaica's JAM-DEX Blockchain Digital Assets — Key Takeaways Blockchain digital assets are revolutionizing our financial landscape, governance structures, and even environmental conservation. Whether it's the efficiency of cryptocurrencies, the uniqueness of NFTs, or the transparency of natural asset tokens, these assets are paving the way for a more inclusive and sustainable future. Also published . here

Blockchain Digital Assets: 9 Types You Should Know About, Explained (with Examples)

Check the checkmate. Welcome to another problem to solve! If you like playing chess and : this one’s for you! Today, we will help the king to survive another day on the battlefield, and also write quite a lot of code. coding So without further ado, let’s see our problem. Before starting though, as always, two disclaimers: These problems are provided by the wonderful newsletter Daily Coding Problem, which you can subscribe to : check it out and try solving your daily challenge too! here I’m not an expert programmer, just a guy who likes to share his attempts (and failures). If you have a better idea or solution you are more than welcome to share it: I’d love to see you tackle it! The problem Today’s problem was initially asked by Oracle. You are presented with an 8 by 8 matrix representing the positions of pieces on a chess board. The only pieces on the board are the black king and various white pieces. Given this matrix, determine whether the king is in check. For details on how each piece moves, see . here For example, given the following matrix: ...K....
........
.B......
......P.
.......R
..N.....
........
.....Q.. You should return True , since the bishop is attacking the king diagonally. The problem is quite clear, so we won’t elaborate more about it. We just need some starting specifications though: We are on a graph, not on a board: . The result is just the same; we will consider each point given by the problem as the center of a case on the board The white king has gone on vacation with other 7 pawns: king and pawns are the most boring of all the pieces and removing them is not going to change our solution that much; We need to v , meaning that on the next white turn it will be taken if he does not move; erify if the king is in check on this very turn : I will not go into verifying for overlapping pieces or wrong starting positions. Positions are initially given by the game The solution First of all, a quick recap of pieces and move-sets: Given the starting position of each piece and his move-set, we can “easily” . calculate every possible next move of every piece And since they are all interested in capturing the king as quick as possible, we can assume that . Therefore, since we also know the black king position, we . If it is, during the next white turn the white piece will move there to capture the black king. their next move will be the one capturing the black king just need to check if the black king position is one of the possible next moves of the other pieces The situation looks something like this: In the picture above you can see (… I hope so, sorry for the confusion …) on the white side, colored with different colors, and the black king above waiting to be captured. So for example the bishop, starting in (2,7), can move to (1,6), (1,8), (3,8), (3,6), (4,5), (5,4) and so on. every possible move of each piece I just randomly decided the starting positions of these pieces since this does not affect the final result. Since we are on a 8x8 graph (to be clear, any other dimensions will work the same way) and we have the starting coordinates of each piece, we can build series of coordinates which will be our pieces next moves. To do this, we first define a define its coordinates and then x,y class for each piece, define the rules to calculate every possible move from there. The pieces — The Pawn Let’s start simple with the Pawn. By the way, I’m building this in , since it’s one of the most popular languages at the moment and arguably the most readable by anyone. Still, y to be able to follow from now on. a pretty neat explanation of this concept. Python ou will need to know what a class is Here’s https://gist.github.com/NicolaM94/ae4e0e850250a6974042b0ac72be7585?embedable=true#file-pawn-py Let’s briefly explain: we first define the class and its coordinates . After that, we define the method to calculate the pawn possible moves from there. The pawn moves are relatively easy, so we simply add them to the variable , after checking that it does not move outside our grid, and return the array. Two things to notice here, specifically for the pawn: class Pawn __init__ x,y possibleMoves moves moves We consider the white pawn to move from bottom to top, like if we are the white player moving our pawn ahead towards our opponent. This does not really change anything, it’s just keeping things in order. We , since we are interested in capturing the black king: since the pawn can only capture diagonally and we don’t care about moving the pieces in other directions, we can skip its normal movement. intentionally skip the normal movement Now we can simply check the pawn’s moves by giving him its coordinates and calling the method, like this: and we should obtain something like . possibleMoves print(Pawn(7,2).possibleMoves()) [(6,3),(8,3)] Also, you can see at the top that , so we can possibly change them to run the algorithm on boards of other dimensions. we defined our grid dimensions as variables Now let’ s move on to the tower. The tower https://gist.github.com/NicolaM94/7897939bdd7933cb09d8915b7b8bc0b5?embedable=true#file-tower-py Again, we init the Tower class with its coordinates and define the function . To collect all the possible moves here , which will be returned after all the loops. As before, to check the tower moves we can simply and we should get something like this: . possibleMoves we range all the points on the tower two axes and add each single coordinate to the variable moves print(Tower(5,3).possibleMoves()) [(1,3), (2,3), (3,3), ..., (5,8)] The bishop Now it’s time for the bishop. https://gist.github.com/NicolaM94/a6ae6f6138b78d550b2f2e27d5c453aa?embedable=true#file-bishop-py Bishop’s moves are more complex than the tower, so we might explain a bit what’s happening here. Basically . After declaring the class and the init method, we create two variables: , as before, and , which will be used to keep track of the points we collected while moving along its axes. Now using loop, and checking that we are not moving outside our grid, we and . For example, if we want to move up-left from its starting positions, we will need to decrement the value while incrementing the value. If we want to move down right, we will need to increment the value while decrementing the value and so on. Finally, we simply return once again. we need to collect points on the two diagonal axes starting from its starting position moves currentPos while increase and decrease x y accordingly to where we want to move x y x y moves The queen Now you could think: if tower moves are complex and bishop are even more, how the heck are we going to code the queen? Actually, the queen moves are the most easy to code, just with the help of a simple trick. Let’s see the queen then. https://gist.github.com/NicolaM94/22bd55aab7a0976f4656403c3749a6ee?embedable=true#file-queen-py Alright, what’s happening here? Well, if we think about it, . She’s more like a tower shaped bishop mecha-bot than a queen. For this reason, coding her moves is really simple. After declaring her class we simply define her as the . the queen has the same moves of the bishop and the tower combined possibleMoves union array of moves resulting from bishop’s and tower’s possible moves Notice that while calling the classes and instances in the function their parameters and are given as , so they are actually the queens coordinates. Bishop Tower possibleMoves x y self.x, self.y The knight Now to the knight! https://gist.github.com/NicolaM94/c19d2c41e4461c66fca54aab239ede9e?embedable=true#file-knight-py The knight is the most particular to me. His move-set is strange, like “L” shaped, so I did not find a particularly clever or fast way to code it and I ended up hard coding its moves simply calculating . each of the 8 possible moves he has from his starting position The king A couple of brief concepts about the king. Since we are not required to move the king, just giving out if he’s checked or not, . However, we will also see a brief implementation in the end of the article. Also, coding it is not as simple as nerfing down the queen’s move-set, as we will see later. So for now, let’s skip his movements and see the solution. we don’t really need to implement his move-set The solution code Given that we have the possible positions for each piece, the solution is pretty simple now: we just need to check if the black king coordinates are in the set of moves of one or more of the other pieces. Let’s code it! https://gist.github.com/NicolaM94/75826a753105c3a3aecae4f6890b631a?embedable=true#file-check-py We now simply create a variable as a couple of coordinates. Then for each piece we create an instance of its class we just built and call the method to calculate its full set of moves. : if they are, we print out that the king is checked by that particular piece. The result here is something like this: blackKing possibleMoves Once we have it, we check if the blackKing coordinates are present in those move-sets Pawn moves: [(8, 3), (6, 3)]
Tower moves: [(1, 3), (2, 3), (3, 3), (4, 3), (6, 3), (7, 3), (8, 3), (5, 1), (5, 2), (5, 4), (5, 5), (5, 6), (5, 7), (5, 8)]
Check by the tower!
Bishop moves: [(3, 8), (1, 6), (1, 8), (3, 6), (4, 5), (5, 4), (6, 3), (7, 2), (8, 1)]
Queen moves: [(4, 3), (5, 4), (6, 5), (7, 6), (8, 7), (2, 1), (2, 3), (1, 4), (4, 1), (1, 2), (2, 2), (4, 2), (5, 2), (6, 2), (7, 2), (8, 2), (3, 1), (3, 3), (3, 4), (3, 5), (3, 6), (3, 7), (3, 8)]
Knight moves: [(4, 7), (4, 5), (8, 7), (8, 5), (5, 4), (7, 4), (7, 8), (5, 8)]
Check by the knight! I used the messy image above as reference, so you could check that the king is actually checked by the tower and the knight. Check mate What about if we also want to calculate or it actually is check mate? For this purpose, we need to calculate the king’s set of moves. if the king has still some chances to survive https://gist.github.com/NicolaM94/cca18293bedb2293bbc621e86236571f?embedable=true#file-king-py Let’s describe it a bit. First off, we define our class and coordinates as before. After that we create the method and code the possible moves of the king (again, I’m pretty sure that there is a faster way, but there are just 8 possible moves so…). After that, and return only the . possibleMoves we check what moves are illegal (move outside the board) validMoves So now, to check if the king has still a chance to survive, To do this we simply loop over the king moves and the other moves. we need to check if any of his possible moves is not in another piece set of moves. https://gist.github.com/NicolaM94/9bdb64c10e2d039905e6353ed37cc101?embedable=true#file-checkmate-py So there’s still hope for our king to survive! Lucky for him I guess… Time complexity As always, a brief look at the time complexity of this solution. First off, since each piece is an , we must consider the time to initialize that instance. instance of a class Pieces like the do not have any loop inside them and do not depend on any variable dimension, so we can consider them O(1); pawn or the knight The is a bit tricky: since it contains 4 for loop you could instantly think that its time complexity is O(n), right? Actually, if we think about how the tower moves, we’ll notice that to the free board cases on its vertical and horizontal axes. And since the board is a square, we will always have 14 free cases to move our tower on. So its time complexity should actually be O(1), constant to 14 couples of coordinates. Here’s a graphic example: tower no matter where its placed on the board, its moves are limited Unluckily, we can’t say the same for the , which set of moves appears to be a bit more complex. Basically, it has 7, 9, 11 or 13 moves depending on where it is placed on the board. Therefore, the steps needed to calculate his set of moves are based on his position, thus we may consider a t.c. of O(n). bishop The needs the set of moves of the tower and the bishop combined. Since , the t.c. of the bishop prevails on the t.c. of the tower. Thus, we must consider a t.c. of O(n) also for the queen. queen while evaluating time complexity we must focus on the worst scenario At last, the has an hard coded set of moves, but also a . So technically, even if the king’s set of moves is relatively small in any case, we must consider his t.c. as O(n), also depending on his position on the board. king validation process involved which uses a for loop At this point, we use . This gives us no problems where the t.c. is constant (take the tower, for example: we calculate its 14 moves and then loop other 14 times over them at most, so we can consider it also fixed time). Still, we’re going to have troubles where the t.c. is O(n) or above, since we are adding a loop which will also grow while the number of moves grow. a for loop for each piece to verify and print out the check status of the black king Finally, , which is definitely going to be a t.c. of O(n²), depending on the number of moves of the king and the moves of the other pieces. we use a double (inner) for loop to verify the check mate That’s it; there’s my solution. I’m well aware that some points are not as most efficient as possible, but while writing I liked the idea of describing the process more than building the perfect solution. What do you think about this? Give me your opinion about it and let’s discuss your solutions in the comments! As always, if you liked the article, please leave a clap or two and subscribe, or share it with someone who could be interested in this kind of algorithms, if you can! Thanks for reading until the end, this time more than always given the length of this solution! As always, thanks for reading.

Daily Coding Problem: Use Your Coding Skills to Check the Checkmate

দৈনিক কোডিং সমস্যা: চেকমেট চেক করতে আপনার কোডিং দক্ষতা ব্যবহার করুন

Tägliches Codierungsproblem: Nutzen Sie Ihre Codierungsfähigkeiten, um das Schachmatt zu überprüfen

Problema diario de codificación: use sus habilidades de codificación para verificar el jaque mate

Problème de codage quotidien : utilisez vos compétences en codage pour vérifier l'échec et mat

डेली कोडिंग प्रॉब्लम: चेकमेट चेक करने के लिए अपने कोडिंग स्किल्स का इस्तेमाल करें

毎日のコーディング問題: コーディング スキルを使ってチェックメイトをチェックする

일일 코딩 문제: 코딩 기술을 사용하여 체크메이트를 확인하세요

Problema diário de codificação: use suas habilidades de codificação para verificar o xeque-mate

Günlük Kodlama Problemi: Şah Matı Kontrol Etmek için Kodlama Becerilerinizi Kullanın

Vấn đề mã hóa hàng ngày: Sử dụng kỹ năng mã hóa của bạn để kiểm tra Checkmate

日常编码问题：使用您的编码技巧检查将死

Between 2020 and 2022, the US Federal Funds rate was 0.25% for two years. A mixture of expansionary monetary policy to spur spending along with a reliance on quantitative easing and high debt levels meant that low interest became the new normal. That was until a European war brought on an energy crisis and worryingly high levels of inflation. Rates shot up almost every month in the US until they . The UK followed suit, albeit a little bit behind the US, and has now reached 3%, whilst the EU has only just reached 2%. Even though these figures lag behind inflation in real terms, psychologically, it’s been the first time in years that high-interest savings accounts are an appealing number with substance. reached 4% in November For this reason, the term “neobank” is slowly being introduced to more people. When searching for which bank has the highest savings rate - a search that would seem nihilistic only last year - neobanks often arise in the searches because of their growing popularity and strong savings rates. What are neobanks Neobanks are what many dub a “challenger bank” or “online bank”, a fintech firm that focuses on its software and apps to streamline a more modern online banking experience. Usually, without any high street presence whatsoever, overheads are kept low, services are kept to a minimum, and efficiency, user-friendliness, and low cost are at the forefront of the business model. Neobanks sound like the future, but they’ve been around for a while. The likes of Starling and N26 were founded in 2014 and 2013, respectively, around the same time as many others. But since then, they only have around for personal current accounts in the UK, which is a similar story in other countries. 8% market share The reason for this could be a few things. Firstly, the older generation is technologically illiterate, and such neobanks are impossible to use without a smartphone and a basic understanding of how they work. Secondly, they are limited in what they can offer; many do not provide mortgages, lines of credit, overdrafts, and so on. Finally, there’s an element of familiarity with a high street bank - some people have been with their local branch for 30 years and do not see the need for change. That is, until now… More and more people use the internet to find the best services available to them, even if it’s non-tech local services like banking and insurance. And, in the current environment of central banks trying to encourage saving. The search for “best savings account” has gone up by 300% in volume on Google in the US since last Christmas. The last time the US Fed Funds Rate was this high was in 2008, a time when neobanks didn’t really exist. So, whilst neobanks have been around for a while and some people have stumbled upon them, this may be the first time when masses of people are looking to change banks since their creation. And, if customers find them to offer not just better interest rates but have a slicker user interface and overall experience, this could become the catalyst for a more substantial shift in market share. Comparing saving account interest rates between neobanks and high street banks Below is some research into the idea that neobanks do in fact offer higher savings rates, and as a result could see an influx of customers during the coming months. Bank interest rate US The average APY among high street banks in the US is around 3%. For example, Barclays, Capital One, and Marcus (Goldman Sachs) are all 3%. The current savings account bank interest rate for leading neobanks, however, is 2% at Chime, 4% at Current, 5% for Plus members at Aspiration, and between 2-5% at Varo. Bank interest rate UK For the UK, Lloyd’s Monthly Saver is 4.50% (0.70% for the current account), 1.2% for Co-ops Online Saver ( ), and for HSBC there are a comically vast number of accounts with savings rates . 2.31% for the 1yr Fixed Term Deposit ranging from 0.4% to 3.45% Out of the British neobanks, Starling doesn’t have a savings account (0.05% AER for the current account), 3.46% at Monzo, and 1.95% at Revolut. Bank interest rate Australia In Australia, AMP Bank’s Saver Account has up to 3.6 p.a. Ongoing variable bonus rate, whilst ANZ offers 2.15% for the ANZ Online Saver members. Ignoring the introductory 3.5% rate for 5 months at the Commonwealth bank, the standard GoalSaver account earns 2.55 p.a. When it comes to Australian neobanks, Up, Xinja, Volt Bank, and 86 400 are the noteworthy challengers to the big 5. Up Savers get a straightforward 2.85% p.a. once activated, whilst Xinja customers are getting 1.8-2.25% and 86 400 customers are getting 2.50%. Bank interest rate Canada Canada’s major banks include the Toronto-Dominion Bank, Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank, and Scotiabank. can be found, but watch out for the small print. Interest rates of 3% and even 4% Toronto-Dominion Bank offers a 1.40% interest rate to customers, whilst Bank of Montreal isn’t much better at . At the Royal Bank of Canada, customers get 4.2% for 3 months but it soon drops down to their default savings rate, which is 1.3%. Canadian Imperial Bank of Commerce has a regular interest of 1.40% and a smart interest of 0.75%. a 1.60% rate There are some higher rates, like the Scotiabank Momentum PLUS savings account, which is 4.50%, but this is limited to 5 months and has $5 transaction fees. For the Canadian neobanks, Neofinancial has a 2.25% interest rate and 1.5% at Wealthsimple. There are a couple of other grey-area neobanks (because, whilst they act as a neobank would, they are owned by a financial institution, thus making them not a challenger bank). These include EQ Bank, which offers 2.50% interest, and 1% at Tangerine. Are Neobanks really better? The above can appear quite confusing and conflicting, which is partly because banks around the world operate differently under different laws and within different markets - plus, the base rate is different too across the board. Some neobanks appear to have better savings rates than high street banks, but there are many cases of the opposite being true too. However, there are some other factors to consider here in regards to the prediction of neobanks gaining market share. Whilst the interest rates may not be always higher, they tend to be more transparent and straightforward. Looking at the UK’s Co-operative Bank and HSBC websites, there are around 40 accounts with different interest rate and fee structures, whilst most neobanks pursue a very clear and upfront deal. Right away, this makes signing up for neobanks easier. But, it’s not just the clarity, the process is also faster because it’s digitalised. Signing up to high street banks often requires a trip to a physical outlet along with presenting physical copies of your identity and address. Neobanks, on the other hand, usually require a selfie video plus a PDF copy of your identity and address, then await a day (though this can depend) and you’re approved. Finally, high-interest bank accounts aren’t always what they appear to be. Almost all of the accounts that stand out as being a very high savings rate come with many disclosures. For some, it’s that you only get this 4%+ rate for a few months before it drops down (in which you need to search through the small print to find). Secondly, these accounts often want you to lock in your deposits, which can come with withdrawal penalties, or they may have transaction fees and limits, as well as other fees. For example, the commonly applauded Scotiabank savings account has an unnecessary $5 transaction fee. Concluding thoughts Neobanks are better in many ways. Generally, it’s their low costs, low fees, and good exchange rates that are more impressive than their savings rates, but when aggregated together, many neobanks do work better as a savings rate (particularly if it’s one that has lots of activity). When depositing a large amount of money for a short space of time, some cash-rich high street banks may offer an advantage here, if you don’t mind the signing up process and reading the small print. So, whilst it may seem counterintuitive to claim that rising interest rates will cause people to flock to neobanks, it may be the case simply because more people are looking for alternatives right now due to the changing market. Currently, business accounts dominate the use of neobanks in the UK, but this trend is set to . shift slightly back towards savings accounts The US market size of neobanks is set to explode to over $45 billion, with payments and money transfers being the key driver. Still, if customers can achieve great exchange rates with fast transfer on a slick app and a competitive savings rate - even if it’s not the best on the market - then this creates a compelling reason to endure their very fast signing-up process.

Are Rising Interest Rates Going to Propel Neobanks? 

¿El aumento de las tasas de interés impulsará a los neobancos?

La hausse des taux d'intérêt va-t-elle propulser les néobanques ?

क्या बढ़ती ब्याज दरें नियोबैंक को बढ़ावा देने वाली हैं?

金利の上昇はネオバンクを推進するつもりですか?

O aumento das taxas de juros vai impulsionar os neobancos?

Lãi suất tăng có thúc đẩy Neobanks không?

利率上升会推动新银行吗？

According to , the no-code industry was worth $13.8 billion in 2021 and became the growing among other tech sectors. It means the development sector of any industry has the ability to use no-code solutions to transform their products. Gartner's report However, the fast growth of no-code solutions is not the only reason for the transformation of the financial industry. New fintech disruptors such as neobanks and non-banks threaten traditional financial businesses and require established financial companies to adopt innovative technologies. Does this apply to the lending market? According to , the global digital lending platform market size was estimated at USD 5.84 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 25.9% from 2022 to 2030. Grand View Research Looking at the numbers from the above report it can be predicted that the growth will primarily occur in large companies due to increased demand and shares in regional markets. Can early-stage lending startups grab their share? This is quite real, but owners need to act today and use the methods that the giants simply will not have time to apply, for example, no-code solutions. However, there are many different reasons why lending startups should be looking to make greater use of the no-code industry. What Does No-Code Lending Software Mean? Briefly, no-code frees you from the constraints of legacy technologies, and enables faster innovation and increased business agility. All you need to benefit from no-code solutions is to select software with all the functionality that addresses your consumer's needs. With real no-code software, you do not have to write a single line of code for your app to be up and running, so the time gained in this process will be invested in other business areas. By adopting no-code solutions, capital investments are reduced to a minimum since you might not need any IT specialists as all the needs have been cared for by your no-code solution provider. Consequently, you will not need to staff an in-house IT department to integrate and customize new lending software. Also, you can avoid any maintenance costs while running your day-to-day business. In the previous paragraphs, you can see the term “real no-code” which means not every platform that offers a no-code approach can prove it. Sometimes it can be just a low-code system that still will require some coding skills to implement, in the worst scenario the implementation will require evolving specialists and take a minimum of three months. To sum up, what does it mean a no-code lending platform? Let's explain with the example of software, an end-to-end no-code lending automation platform. Such a platform provides you with the following benefits: Neofin Give you a reduced development time, as you can launch any new lending products within 1 hour; No need for specific expertise or involvement of IT specialists; No employee training is required since the instance is set up from an intuitive control panel; Agile approach with an ability to test ideas and launch new products within 1 day.** What No-Code Solutions Lending Startup Can Adopt Complex loan origination, servicing, and management solutions are not the only options lending companies can choose to launch their products. There are also separate tools on the market that will help make the process of issuing loans more efficient, faster, and less risky. For instance, KYC and Digital Onboarding will help you with 3D liveness detection, video verification, document recognition, client application forms, and data validation algorithms. With no-code solutions, the KYC process is streamlined, eliminating data duplication. On the other hand, the no-code Decision Engine puts the lender at competitive edges, as it brings flexibility, speed, and proper regulation to what customers can get as it is a nexus between the customer want and institutional credit policy. One more option is to adopt BNPL software to start offering customers new and trendy services by using the company’s capital. If you want to learn more about the process of launching your own BNPL product with no-code software, you can where this issue was explained. watch this webinar But if the initial task is to launch or significantly improve the lending process, it is worth paying more attention to the all-in-one products. Such solutions help to automate all stages of the borrower's journey from the application to origination, servicing, and reporting. Launch of No-Code Emergency Lending - Easycash Experience Easycash is an online emergency lending service launched in 2020. It allows users to access credit for payment on any bank's card within minutes and all year round. Easycash had a minimal time limit before launch and required a fully automated solution that covers all the stages of the borrowers’ journey, from the loan application, origination, and servicing, to decisions and reporting. Also, the company did not have any IT units that could work on the project and required an independent contractor to actualize the project plan within Easycash was looking for a no-code lending software provider that would help them launch the product without the special expertise and involvement of IT specialists. Among the chosen tools, they selected Neofin due to its modular end-to-end system and easy-to-use interface. The project was launched without having any in-house IT specialists on board while it simultaneously started yielding profits in six months. Conclusion Fintech startups must be faster to stay competitive, and no-code solutions can be one of the ways to compete in this race. Less time to launch, no IT specialist and coding skills required and a wide range of customization possibilities are all advantages that help a new loan company achieve results faster. Also Published here

Why You Need No-Code Solution to Launch Your Lending Startup

It is easier to understand why something acts as a solution, than understand why it acts as a problem. Rightly embedded within the Blockchain and DeFi space, is Stablecoins. Stablecoins (SC’s) are a viable alternative to cryptocurrencies, as they are pegged to a fiat currency and supposedly give digital coins a stable price (1:1), something that has been an issue for un-pegged crypto coins and tokens. SC’s could effectively provide the best of both worlds of traditional finance and DeFi by utilizing the full scale of DeFi and blockchain, whilst eliminating coin price volatility. This latter point is something that we have come to expect from digital assets, as explosive price swings have hampered the trust-of-use system. The Crypto market is robust. It includes thousands of different digital assets, crypto companies, and decentralized financial products. Yet, there is still so much potential that is not being fulfilled by Blockchain tech and DeFi, as it still does not make sense in the mostly centralized system we have today. Stablecoins have the potential to close this gap, as they connect to centralized systems, rather than compete with them. This makes much more sense when looking at the future of Blockchain, Oracle Protocols and DeFi. SC’s also make the public’s interaction with DeFi more practical and more realistic. For instance, If someone places ETH into the Compound protocol to earn interest, for example, there is the possibility that an ETH price drop offsets any yield earned, leaving that person with a loss. However, if the same person uses a SC, such as USDC, the value of the underlying asset would remain stable so the yield would remain unaffected by crypto market price volatility. When looking for above-average yield than traditional fixed-interest investments — such as savings accounts, money market funds, or bonds —digitized funds in the DeFi market seem to be the answer, yet the tender that invests in these, needs protection. Arguably, the easiest and safest way to do that is to tokenize US dollars into a SC, which can then be used to deposit into DeFi protocols. Stablecoins are therefore a solution to a host of bridge problems being raised in DeFi and centralized systems. Yet, the DNA of SC’s does not intertwine very well into our current system, if that at all. They bring native problems that are hard to fix overnight. One of the problems revolves around the core of the solution - t00000000.1 95% Of all Stablecoins are asset backed (other 5% are algorithmic supply based) — whether that’s by the corresponding fiat currency, digital assets, or by other financial instruments such as money markets, gold, stocks or bonds. Let’s look at SC:Tether and their breakdown of asset-backed collateral. As you can see most of Tether’s reserves are in ‘off-chain’ market instruments, such as Cash & Cash equivalents, making up 85.64% of reserves with Treasury Bills making up over half of that figure. Treasury Bills are t(1) instruments, meaning they take a day to settle. If Tether wanted to sell it’s position at 9:00am Monday morning, they would receive the funds AM Tuesday. Yet if Tether sell’s it’s position at 9:00am on Friday, it would receive the funds AM Monday. This is an extremely big flaw in off-chain collateralized SC’s. If SC’s had settlement terms t(n) it would probably be t000000000.1, which is lightspeeds faster than t(3) (Saturday (t1), Sunday (t2), Monday (t3)). This is because SC's settle near instantly and trade 24/7. For instance, If the blockchain economy fails and the market rejects the fiat-backed SC and hypothetically every holder demands redemption at t0000000.1, then there is a timing mismatch of available redemption funds and a huge liquidity risk, as off-chain collateral is held at a minimum of t1 and possibly t3 at the weekend. SC’s do have designated redemption days, yet a run on the SC makes these days worthless. One way to get round this, is to hold reserves on-chain, thus matching t0000000.1. Yet you would need to hold a huge reserve premium to account for the price swings of being on-chain. This is why SC’s such as Tether don’t like to do this, as it’s in their interest to tie up as little capital as possible, whilst on-chain is also considerably more risky. There are other options such as using Chainlinks Proof-of-reserve protocol that provides smart contracts with the data needed to calculate the true collateralization of any on-chain asset backed by off-chain or cross-chain reserves. This does not solve the timing issue directly, but makes the reserve process incredibly more transparent. Yet, as the PoR protocol is an autonomous auditing of collateral in real-time, it does allow the protocol to make decisions about how best to protect user funds. For instance, the PoR can protect funds in a undercollateralized event (less than the amount of reserve backing the coin) by using autonomous circuit breakers, similarly to traditional financial markets. A good example is how PoR’S work to power (SC) TUSD (TrustUSD). Chainlinks Oracles collect Trusttoken’s reserve data from it’s accounting firm – Aemanino, which audits the data off-chain. If the reserves were to deviate from the coins supply threshold, a trigger would be released and the PoR protocol (however it was set up) would decide what action to take instantly, whether that be reducing the buyer ability or selling ability. Although Oracles can bridge the gap between on and off-chain, this does not solve the timing mismatch issue per-say, all it does is make the market more realistic at scale. Circuit breakers should be seen as an action of last-resort, not a pillar of process that could happen on a bi-weekly circle. Although Chainlink has the right idea, they are considering protocols for the current environment of SC’s, when they should be considering them in a sandbox scenario where SC’s are at the heart of digital transactions. This is where regulators could help. The European Central Bank (“ECB”), The Financial Stability Board (“FSB”), the Bank for International Settlements (“BIS”) and the Commodity Futures Trading Commission (“CFTC”) have all issued guidance on SC activity to bring them under regulatory oversight yet have not issued any requirements around reserves, specifically related to SC’s. There has been no rulings on SC reserve make-up, on-chain and off-chain minimums, settlement issues, mandatory maximum risk weightings, reserve auditing or any mention of any type of Oracle protocols being used to audit collateral. Regulators are acknowledging SC’s existent but refusing to put a hand in the game. They are instead trying to fuse SC’s into categories already regulated such as digital payment assets and securities, which complicates things further as SC’s have native features. We have already seen how this plays out with Neufund. A further worrying sign is the use of ‘Return-in-Kind’ arrangements. These effectively allows SC’s to return an asset of the their choice (In-Kind) to the coin owner, at redemption. Therefore, you could end up buying a Stablecoin with Euros, but end up redeeming your Stablecoin to a bond, stock or even an asset on-chain. These arrangements are also vague when it comes to the value of the Asset-In-Kind you receive, compared to your SC holding value. There is no universal method of correlating the two, something that is sure to prop up as a problem sooner or later. Regulators could easily ban this approach as it dents the trust in digital payments and benefits the SC community in few ways. Regulating Stablecoins is effectively regulating part of the bridge between on-chain and off-chain funds. Stablecoins offer a host of benefits to financial markets and consumers, yet regulation needs to account for how DeFi will evolve overtime so that it does not limit any protocols and innovation in this bridge. Getting SC Reserve requirements right is extremely challenging, yet there needs to be universal guidelines that clearly define that the SC transactions are legitimate and that the worth of the transaction is backed and readily available at redemption. Solving the t0000000.1 problem, mandating reserve risk breakdown, banning Return-In Kind and introducing credible universal proof of reserves either by Oracles or off-chain should be the regulators first priorities.

Stablecoins - The T0000000.1 Problem

Blockchain is a cutting-edge technology that is being used in a variety of applications these days, including smart healthcare, smart education, cryptocurrency, and many more. This technology and its applications consist of many topics which can be published and debated in a variety of generalized and well-respected conferences, journals, summits, and workshops. Crypto Valley Conference on Blockchain Technology, CVCBT
Link: https://www.cryptovalleyconference.com/ ICBC - IEEE International Conference on Blockchain and Cryptocurrency
Link: https://icbc2022.ieee-icbc.org/ IEEE International Conference on Blockchain, (Blockchain)
Link: http://www.blockchain-ieee.org/ International Conference on Cloud Computing, Big Data and Blockchain, ICCBB
Link: http://fzuconf.com/ICCBB-2018/index.htm Bitcoin Conference
Link: https://b.tc/conference/ CRYBLOCK  - Workshop on Cryptocurrencies and Blockchains for Distributed Systems Link: http://www.cryblock.org/ BCC - ACM Workshop on Blockchain, Cryptocurrencies and Contracts Link: https://www.isical.ac.in/\~bcc/bcc19/ IWBOSE  - IEEE  International Workshop on Blockchain Oriented Software Engineering Link: https://www.agile-group.org/iwbose2021/ IEEE/ACM International Workshop on Emerging Trends in Software Engineering for Blockchain, WETSEB. Link: https://www.agile-group.org/wetseb2022/ BlockSys - Workshop on Blockchain-Enabled Networked Sensor Systems Link: https://acmblocksys.github.io/blocksys2021/ BSCI ACM International Symposium on Blockchain and Secure Critical Infrastructure Link: http://www.cloud-conf.net/bsci/2022/ Paris Blockchain Week Summit Link: https://pbwsummit.com/ Blockchain Life Link: https://blockchain-life.com/europe/en/ World Blockchain Summit Link: https://tresconglobal.com/conferences/blockchain/dubai/ Blockchain Revolution Global Link: https://blockchainrevolutionglobal.com/ DC Blockchain Summit
Link: https://dcblockchainsummit.com/ Blockchain & Sustainable Economic Growth Link: https://gbaglobal.org/blockchain-sustainable-economic-growth/ European Blockchain Convention
Link: https://eblockchainconvention.com/ Blockchain and Internet of Things Conference Link: http://www.biotc.net/ International Congress on Blockchain and Applications
Link: https://www.blockchain-congress.net/ Government Blockchain Association (GBA) Events Link: https://gbaglobal.org/events/ Sustainable Energy: Blockchain and Cryptocurrency
Link: https://www.sebccon.com/ Blockchain in Oil & Gas Conference Link: https://blockchain-oilandgas.energyconferencenetwork.com/ Blockchain Tech Summit
Link: http://blockchaintechsummit.org/ Blockchain Economy Summit
Link: https://blockchaineconomy.global/ Future Blockchain Summit Link: https://www.futureblockchainsummit.com/ Blockchain for Governance Link: https://www.d4a.io/ Istanbul Blockchain Week
Link: https://istanbulblockchainweek.com/ Blockchain Summit Link: https://blockchainvsummit.com/ ELEV8CON PARABOLIC Link: https://elev8con.com/elev8con/ CRYPTOWORLDCON Link: https://cryptoworldcon.com/ Israel Crypto Conference Link: https://www.israelcrypto.io/events/israel-crypto-conference-2022 BlockchainUA Conference. Community. Trends. Link: https://blockchainua.com/en/ Permissionless Link: https://blockworks.co/events/permissionless/ Consensus Link: https://www.coindesk.com/consensus2022/ Blockchain Futurist Conference
Link: https://www.futuristconference.com/ India Blockchain Week (IBW)
Link: https://www.inblockchainweek.com/ The North American Bitcoin Conference Link: https://www.btcmiami.com/ The Science of Blockchain Conference (SBC) Link: https://cbr.stanford.edu/sbc22/ The Blockchain Event Link: https://www.theblockchainevent.com/east/ ETHDenver Link: https://www.ethdenver.com/ LendIt Fintech NEXUS Link: https://www.lendit.com/nexus/2022/ Bitcoin Day Sacramento
Link: https://bitcoinday.io/sacramento22 Crypto State Link: https://www.coindesk.com/static/2021/11/30/crypto-state-2021-events-page/ FinTech Festival India Link: https://www.fintechfestival.in/event/6cf223a8-3f97-45d0-a2d9-1e8c1cae49ba/summary Future Digital Finance Link: https://netfinance.wbresearch.com/ Crypto Clarity: A Behind-the-Scenes Look at Crypto and Financial Crime with Coinbase and Binance Link: https://www.unit21.ai/resources/events-webinars/register-for-crypto-clarity-webinar-with-coinbase-and-binance Shred the System: Driving the Crypto & Blockchain Revolution Link: https://summits.harrisburgu.edu/cryptocurrency-conference/ Blockchain Africa Conference
Link: https://blockchainafrica.co/ Dystopia Fest Link: https://dystopialabs.com/ New York FinTech Week Link: https://empirestartups.com/events/new-york-fintech-week/ Empire FinTech Conference Link: https://empirestartups.com/events/fintech-conference/ Open Banking & Instant Payments Summit Link: https://www.kinfos.events/ob-ips/ AIM Summit Link: https://www.aimsummit.com/ Reuters Events: Investment USA Link: <https://events.reutersevents.com/finance/investment-usa?        utm_source=bizzabo&utm_medium=eventlisting &utm_campaign=5530> LendIt Fintech USA Link: https://www.lendit.com/usa/2022/ DeFi Conf Link: https://deficonf.xyz/#/ MONEYCONF Link: https://websummit.com/tracks/moneyconf Money20/20 Europe Link: https://europe.money2020.com/ Reuters Events Renewable Finance and Investment North America Link: <https://events.reutersevents.com/renewable-energy/finance-investment-usa?utm_source=Media Partner%3A Bizzabo&utm_medium=Event Listing &utm_campaign=5536> Reuters Events: Payments Summit Europe Link: <https://events.reutersevents.com/finance/payments-europe?utm_source=bizzabo&utm_medium=eventlisting &utm_campaign=5565> Mallorca Blockchain Days Link: https://mallorcablockchaindays.com/ London FinTech Week 2022 Link: https://www.fintechweek.london/event/0d7c012f-8593-4b1a-a93d-0d4a22b5b9b9/summary Zebu Live Link: https://www.zebulive.xyz/ Money 20/20 USA Link: https://us.money2020.com/ TOKEN2409 Europe Link: https://www.europe.token2049.com/ Decentralized Link: https://www.decentralized.com/ Blockchain Finance Forum: Europe Link: https://www.blockchainfinanceforum.com/ Fintech connect Link: https://www.fintechconnect.com/events-london CrossTech Conferences/ Events
Link: https://imtconferences.com/ Blockchain Conference - Harvard CMSA Link: https://cmsa.fas.harvard.edu/blockchain/ BSV-DEVCON
Link: https://bsvdevcon.net/ Blockchain Technology Conference (Blockchainconf)
Link: https://blockchainconf.net/ Blockchain: Research and Applications (Journal)
Link: https://www.journals.elsevier.com/blockchain-research-and-applications Frontiers in Blockchain (Journal)
Link: https://www.frontiersin.org/journals/blockchain International Journal of Blockchains and Cryptocurrencies
Link: https://www.inderscience.com/jhome.php?jcode=ijbc IET Blockchain  (Journal)
Link: https://ietresearch.onlinelibrary.wiley.com/journal/26341573 Journal of Blockchain Research
Link: https://www.intlpress.com/site/pub/pages/journals/items/jbr/_home/_main/index.php Special Issue "Advances in Blockchain Technology and Applications"
Link: https://www.mdpi.com/journal/applsci/special_issues/Blockchain_2020 Special Issue "Blockchain and Cryptocurrencies"
Link: https://www.mdpi.com/journal/jrfm/special_issues/Blockchain Stanford Journal of Blockchain Law and Policy
Link: https://stanford-jblp.pubpub.org/ Call For Papers: Special Issue on Blockchain
Link: https://www.springer.com/journal/10619/updates/19089506 The Journal of The British Blockchain Association (The JBBA)
Link: https://jbba.scholasticahq.com/ Special Issue Call for Papers: Blockchain-based applications for enhancing cybersecurity in manufacturing and building supply chain resilience
Link: https://research.com/special-issue/blockchain-based-applications-for-enhancing-cybersecurity-in-manufacturing-and-building-supply-chain-resilience Blockchain in Healthcare Today(BHTY)
Link: https://blockchainhealthcaretoday.com/index.php/journal International Journal of Blockchain Applications and Secure Computing (IJBASC)
Link: [https://www.igi-global.com/journal/international-journal-blockchain-applications-secure/290373#:\~:text=provides a...-,The International Journal of Blockchain Applications and Secure Computing (IJBASC,blockchain technology and secure computing](https://www.igi-global.com/journal/international-journal-blockchain-applications-secure/290373#:%5C~:text=provides%20a...-,The%20International%20Journal%20of%20Blockchain%20Applications%20and%20Secure%20Computing%20(IJBASC,blockchain%20technology%20and%20secure%20computing) Special Issue on Fusing Blockchain and AI with Metaverse: Technologies, Trends, and Applications
Link: https://www.computer.org/digital-library/journals/oj/cfp-blockchain-ai-metaverse Recent Advances on Blockchain for Network and Service Management
Link: https://www.comsoc.org/publications/journals/ieee-tnsm/cfp/recent-advances-blockchain-network-and-service-management Blockchain Incubator Workshop
Link: https://blockchain.ieee.org/conferences/incubator-workshop Ledger journal
Link: https://ledgerjournal.org/ojs/index.php/ledger Blockchain Expo World Series
Link: https://www.blockchain-expo.com/ Call for Papers for Special Issue on "Blockchain and Electronic Commerce"
Link: https://www.springer.com/journal/12525/updates/20197204 BSV Bitcoin association (Conferances and Events)
Link: https://bitcoinassociation.net Dcentral Austin
Link: https://www.dcentralcon.com/ BlackSeaChain Link: https://www.blackseachain.com/ Blockchain Oracle Summit Link: https://blockchainoraclesummit.io/ Blockchain Technology Symposium Link: https://bts-2022.cpsc.ucalgary.ca/ Bitcoin Mining Conference Link: https://braiins.com/bitcoin-mining-conference-2022 The African Women in Technology- Blockchain/Crypto Conference Link: https://www.africanwomenintech.com/the-african-women-in-technology-host-the-blockchain-crypto-conference-july-6-8/ International Conference on Blockchain Technology and Information Security Link: http://www.bctis.net/ I've listed some of the venues here, but this list is likely to grow in the near future as new venues are added. Aside from this, there are a number of blockchain-related books where researchers can quickly publish their findings. Various groups, webcasts, podcasts, blogs, and lecture series relevant to blockchain research can also be used to discuss your ongoing work and receive suitable feedback. Please let me know if there is anything I've forgotten. Both I and this blog will be upgraded. Please contact me via any social media platform or email. kaur.3@iitj.ac.in https://twitter.com/Jaspreet173 https://www.linkedin.com/in/jaspreet-kaur-07726a123/ https://www.facebook.com/profile.php?id=100003792556320 https://www.researchgate.net/profile/Jaspreet-Kaur-107

100 Blockchain Conferences, Events,  and Workshops Everyone Should Know

In the world of decentralized finance (“defi”) we often hear about “banking the unbanked”. The vision is to give people with no access to even a bank account, access to global financial market. People from developing countries often suffer from hyper inflation, massive fluctuations of their local currencies, restrictions by their governments or simply have no bank account to store their financial valuables. They cannot do anything than accept that. With the defi ecosystem they do not have to accept that any longer. Venezuelans, for example, are already massively adopting bitcoin to protect their wealth from governmental control and hyperinflation. There are many articles about the advantages of defi and people talking about their personal positive experiences. Here is a short overview of the biggest advantages of defi: Permissionless (anyone can connect: wealth, status, location irrelevant) Decentralized (no central server, records kept across many computers) Trustless (no central validation authority) Transparent (transactions publicly auditable) Censorship Resistant (no interference by central authority possible) Programmable (code is law) Low Cost (affordable cross-border transactions) Fast and Anytime (instant transactions 24/7/365) In this article I will show you how to rethink your financial planning right now for yourself and for your children and profit from all those advantages. It is really easy to take you first small steps in defi today and ensure the accumulation and protection of your future wealth for good. So maybe you belong to the privileged part of the population that thinks you do not have to care about defi, because you have access anyways? On the one hand that is quite selfish, on the other hand that is pretty ignorant. Even in developed countries, we already see a big shift away from a one stop shop bank relationship to a diversification of financial services’ providers. We access our check account via an online bank or app instead of a physical bank branch, use another online broker dealer for our trading activities and take up loans where they are cheapest – thanks to smart comparison portals. The “unbanking from your bank” is already in full progress. Fintechs have revolutionized financial services. But DeFi reinvents banking entirely new, focussing on full decentralisation and global financial inclusion at almost no cost. You are still not convinced why you should be well-versed in these topics? Then you probably also belonged to those children that only believed that touching a hot stove is not a good idea, directly after trying it our yourself. And this is not a bad thing. Not believing everything and questioning a lot is a good virtue. If the advantages of DeFi are difficult to grasp for you, start making your own experiences! Otherwise, you miss out on a lot of innovation and advantages. Starting today has never been easier I can tell you from my own experience, the more you learn about it and the more you gain experience, the deeper you get drawn into it. The effect will be so much stronger than any written or verbal advice. Let’s start throughout the lifecycle of a human being from child to pensioner to help you make your first steps into defi today. Financial planning cycle with defi from child to pensioner 1. Savings Account In Germany a paper savings book (“Sparbuch”) has for centuries been a typical gift for a new born by his grandparents. The child could for example save his pocket money and gain compound interest on that. Gain what? Yes, exactly. We barely have any interest rates anymore on savings accounts and therefore this product has become completely obsolete and only costs money. Defi offers a very attractive alternative here. MakerDAO constructed the stable coin DAI, which replicates 1:1 the USD. While a regular savings account offers a negative or low interest rate (e.g. Germany currently 0.01%), which does not even compensate for inflation (Germany CPI 1.4%) the interest rate on DAI, called Dai Savings Rate (DSR) is currently at 2%. So while some traditional bank accounts even charge negative rates, at Maker Oasis, you don’t have to pay for your savings, but actually receive interest and in the best case can compensate for inflation (depending on your country). Even for a non-techie like me, it was really easy to “open an account” in a few seconds. If you own certain coins, you can also stake them and generate attractive returns as well. However, this is a bit more complicated, but can generate an annual yield of up to 10%. Via StakingFacilities for example you can stake (bake) Tezos, Atom or Aion. You can delegate tokens to a validator, which executes your staking (baking) rights. 2. Loan / Credit Card Let’s stay in the field of interest rates and have a closer look at borrowing and lending. At some point your savings and income might not be enough to afford bigger purchases. But do you really want to wait several days or weeks for a creditworthiness check, show your bank all irrelevant reliabilities of the past and present and rely on an opaque credit score just to receive in the end a loan with an interest rate of audacious 10%-30%? Besides Maker Vault, the DeFi space has several other crypto to crypto lending and borrowing platforms (e.g. Dharma, Compound, Salt, Ethlend, dydx) as well as crypto to fiat platforms (e.g. BlockFi or Unchained Capital). With InstaDapp you can even optimize across decentralised platforms to get the best return offered. Maker, for example, goes entirely trust-less without approval process or credit score, relies simply on your underlying collateral, offers currently an attractive interest rate (called “stability fee”) of 4% and their CDP Portal is available 24/7/365. 3. Driver’s License If you managed to open a savings account and get a credit with Maker protocol, probably at the age of 18 you will have to undergo an identity check to legally vote for the first time, get a driver’s licence or a passport to travel across borders. But why would you show all your personal details if just your age (driver’s license) or just your place of residence (elections) matters? In the defi space several companies like Iden3, Civic or uPort are working on encrypted solutions that allow people to control their own data and just show the most relevant information for the respective occasion. 4. Voting Rights We are all aware of the double counting problem during presidential elections and the general problem of manual counting of paper votes in the traditional world. 2019 has been the year of the so-called decentralized autonomous organizations (short DAOs). Even though the first DAO wasn’t a success story, the DeFi space has learnt from it and projects like Decred, Maker or Gnosis show how successful digital decentralized governance and voting can look like. As a coin holder you can actively vote on proposals and make your voice heard. Every vote counts. 5. Income and Payments After you opened a savings account, got your driver’s license, travelled a bit abroad, voted for the first time and took up a loan to finance your studies for example, you finally landed a job. But what if you live in a country with extreme currency fluctuation or hyperinflation where the money earned doesn’t allow you to pay your bills? Here again DAI offers a solution for stability in the income that you earned. And if you want to conduct instant peer-to-peer transactions, projects like OmiseGO facilitate financial services payments when it comes to loyalty programs or fiat money, while the lightning network enables instant transactions via payment channels. 6. Real Estate / Car / Art Now that you have your daily finances settled, you might want to start investing short or long term. For crypto currency trading decentralized exchanges like AirSwap, KyberSwap or Uniswap are a good place to go to. You can profit from the cost-average effect and invest monthly in crypto currencies to accumulate and grow crypto wealth constantly over time. If you want to diversify your portfolio further, start investing in other asset classes as well. You can invest in non-fungible tokens (like crypto-kitties) or get exposure to traditional assets like real estate, cars or others valuables by investing in tokenised assets. The best part is that you don’t have to buy an entire house, car or piece of art, but can buy fractions of it with little money and flexibly divest or increase your exposure. Projects like Tinlake or Neufund are interesting starting points. If you are interested in expensive cars, check out CurioInvest.com. I met the founder and CEO this year and was thrilled by their idea of tokenising cars. Conclusion You can see that already by today you can easily “un-bank your bank”, become financially independent and profit from all advantages that were mentioned in the beginning: Instant permissionless low-cost transactions at any time and for anyone without interference of a central party. Who doesn’t want that? If you invest with the right risk appetite during the respective life cycle (the longer your investment horizon, the more risk you can take) while incorporating personal liquidity needs, investing with defi can help you optimising your long-term retirement planning and enhancing your financial return. Disclaimer: This is not financial or investment advice. Information is based on my own opinion. Always do your own research and never invest more than you can afford to lose. (Photo by Jessica Da Rosa on Unsplash)

How DeFi Simplifies Financial Planning for All

companies have a variety of necessities to iron out that increase the likelihood of future success. As they figure out the specifics needed to launch, a growing number of them decide to offer stock ownership plans (ESOPs). Here are four reasons why: Startup employee 1. They Give Owners an Attractive Exit Strategy ESOPs provide employees with ownership stakes in the company via stocks. As such, workers become partial owners in the company. If business leaders decide to leave their startups, some of them create an ESOP . Doing that allows them to reward employees for their hard work and not have to look for external owners. as an exit strategy Making an ESOP before exiting the company also allows the departing person to receive the fair market value for any stocks held in cash on the day of the sale. Moreover, if a person only sells part of their ownership interest, they stay in control until receiving their full payments. The business successors are the existing management team, too. They’ve likely played instrumental roles in building and upholding a company’s values and can continue to do that thanks to what an ESOP provides. It’s also helpful that for companies to convert to ESOPs. Qualified companies must have been in business or profitable for at least three years. recent U.S. legislation makes it easier 2. ESOPs Have More Staying Power Research indicates that about 90 percent of startups fail, but at the statistics shows failure rates vary by industry. In any case, startup founders must be aware that the odds stack against them, especially in those all-important early days of operations. However, found that those firms have higher survival rates than non-ESOP companies. a more in-depth look an academic paper about ESOPs The study looked at the most severe instances of disappearing from the marketplace — closure and bankruptcy — as well as lesser factors like mergers. However, the authors admitted they could not find conclusive evidence to explain the longer firm survival aspect associated with ESOPs. 3. Increase Employee Morale and Productivity Happy employees can be ambassadors for a startup, but disgruntled ones contribute to a toxic internal culture that often leaks to the outside. However, various studies suggest that capital-sharing arrangements, such as ESOPs can , causing them to want to work harder than they otherwise might. make employees feel more satisfied Other research shows that ESOP companies than non-ESOP ones. That could occur — in part — because employees feel heavily invested in the company and eager to help it reach goals. grew five percent faster There’s no single and guaranteed way to make productivity rise and keep it at a high level. But, evidence suggests ESOPs play a role in reminding employees that they have a direct interest in helping the company thrive. 4. Retain Employees Even When Paying Lower Salaries One common challenge for startup founders to overcome is figuring out how to keep employees interested even if the salaries offered are lower than average. Since ESOPs give workers ownership stakes, they could help potential and current employees realize that perks come in many forms. There are also early efforts to . A company called wants to execute the stock options on the blockchain through tokens. That system could work even for non-blockchain or cryptocurrency-related companies. combine ESOPs with cryptocurrency Neufund Neufund created an employee incentive program to test its ESOP tokens. The company also made it open-source for other startups to use regardless of location. The ESOP tokens both set and enforce the terms of the agreement, making conventional contracts not necessary. ESOPs can give employees , thereby increasing their long-term loyalty to the company. Plus, the option to carry out ESOPs on the blockchain as mentioned in the Neufund case brings greater transparency into the equation. a greater sense of belonging Employees in an ESOP can also receive stock options as performance incentives. If startups cannot afford to give them traditional bonuses, stock options are another possibility that help show gratitude for well-done work. Hiring for a startup is tricky, especially if people perceive the company as a high-risk opportunity or unknown. But, ESOPs give potential new hires access to more incentives beyond a traditional salary. ESOPs Gaining Appeal ESOPs still comprise a relatively small percentage of companies, but this list gives some of the many reasons why startups find them so attractive. As new companies explore this option, other entities will likely follow those leads and respond in kind. Image by Rawpixel

Why More Startups Are Choosing Employee Stock Ownership Plans

A Primer March 20, 2019 Last updated on - It all began with an investor-directed venture fund called . In May 2016, it set the record for the largest crowdfunding campaign in history, with a participation of 18,000+ stakeholders that raised 11.5 million Ether (ETH) or US $150 million. It was enabled by the Blockchain technology where the or at least it was until some bad actor(s) exploited a vulnerability concerning recursive calls in smart contract code, enabling them to divert one-third of the funds to a subsidiary account. The stolen funds were put in a 28-day holding period and the Ethereum community debated about possible solutions which resulted in a split of Ethereum network: where the hacker still has the funds and; the one in which they do not - .[1] The DAO Code is Law The DAO (ETC) Ethereum Classic (ETH) Ethereum Later on July 25th, 2017 - the ( ) concluding Tokens as securities. So, a computer code behind a decentralized autonomous organisation, essentially became a security in the eyes of SEC and government agencies around the world started taking note; issuing statements which resonates with those of SEC, and at times more generic resulting in a unclear stance on cryptocurrencies and tokens for the public.[2] US SEC SEC from here issued an investigative report The DAO We must understand that was a special token. It was and not tied to any particular nation state or country and embodied specific claims in its structure and that the code itself was the . The questions of how to deal with the governments was really hard to answer and it still is. Professionals in favor of cryptocurrency regulations are welcoming the stance of SEC to consider most tokens as security while still exploring exemptions (e.g. ) to raise funds for their businesses. provides a from US securities regulation if there are no direct selling efforts within US to US residents/companies. The DAO stateless prospectus SEC Form D Regulation S safe harbor to issuers A research paper entitled proposed two policies to mitigate legal uncertainty concerning token sales - Crypto-Securities Regulation First, we suggest tailoring disclosure requirements to the code-driven nature of token sales. Such an ICO-specific safe harbor would offer a clear and less burdensome path to EU law compliance for token sellers who suspect that their tokens may qualify as securities. This only requires the Commission to amend its delegated 2004 Commission Prospectus Regulation. Second, we propose that, on an international level, governments form a compact to bestow certainty about the application of their respective securities regulation regimes to token sales. This is, first, to avoid regulatory overkill on the one and regulatory lacunae on the other hand in online-mediated, global token sales. Second, overlapping, and partially contradicting, securities regulation regimes can even undermine each other. In the end, only a joint international regulatory regime can efficiently balance investor protection and investor access in the face of the novel generation of decentralized blockchain applications. [3] The paper also calls for an International Convention for crypto securities to help provide the investors and issuers a clear understanding of regulatory landscape. provided a nice summary of the STO Market in her which tells us that geographically, Tatiana Koffman article Due to the nature of complex regulatory environments, US is in the lead for total STOs in the market, with Switzerland taking the second spot. Additional activity is noticeable in European countries, while Asian markets, although leaders in ICOs, are yet to catch up to STO activity. We expect untapped markets to continue to be curious about STOs, following the regulatory lead of the US. while the securities on offer lead by with revenue-share, tokenized funds and asset-backed deals, equities and bonds trailing behind. So to summarize… STOs allow projects to raise funds in a regulated manner, provides investors with rights over assets, profits or revenue in a company and reduces legal risk. Security Token Standard The call to extend the popular and the has been in work for months resulting in describing it as having many of the characteristics of both fungible and non-fungible tokens . Security tokens are designed to represent complete or fractional ownership interests in assets and/or entities. While utility tokens have no limitations on who can send or receive the token, security tokens are subject to many restrictions based on identity, jurisdiction and asset category. [4] The token is believed to have incorporating differentiated ownership, error signalling, document references, gate keeper (operator) access control and issuance / redemption semantics. ERC-20 non-fungible ERC-721 ERC-1400 Supported by participating organisations and individuals including but not limited to - , , , , , , , , . The efforts for a standard will bring uniformity in its structure for the issuers to tokenize and issue various kinds of tokenized assets (securities on blockchain) easily. Polymath OpenFinance Tokeny.pl Vertalo ChronoLogic Scott Purcell Goldmoney Securitize.io celebrus strategies According to a report published in , the securities token platform and recently that tokens can be compliant on a decentralized exchange. CoinDesk Polymath Loopring demonstrated hooray! Recent STOs auctioning US $66 million building on Ethereum Blockchain; a occupied property in downtown Miami, Florida. The company is said to tokenize some US $260 million in four private real estate and debt transactions[6] Invenium Capital Partners WeWork - A real estate investment trust (REIT); single-asset REIT intends to only own the St. Regis Aspen Resort raised funds_[7]_ Aspen Digital - A late stage, pre-IPO technology growth fund; an effort to democratize investment [ ] Andra Capital AndraCapital - Fine Art - Andy Warhol’s 14SEC through dutch auction bidding on platform Maecenas sold Maecenas - Real Estate; investors offered to receive either analog or digital interests in the property in partnership with using 436 & 442 East 14th St, Manhattan propellr AirSwap Ltd - Gaming/Gambling (revenue share token structure) [ ] Lottery.com Lottery.com - STO Exchange (offered equity with revenue participation) tZero - Venture Capital Fund (allowing investors to own up to 10% equity) [ ] 22x 22xFund , , , , , , , , , , , are also worth looking at. SPiCE VC Blockchain Capital Neufund Monetizr (MTZ) INDX Capital BlockEstate TrustToken Corl Gainfy Leaseum Partners Vertalo Hypd Securities Agencies’ crackdown on crypto crowdfunding , a bitcoin futures firm which got its domain seized by US authorities back in September 2018 recently announced -“ Funds of the investors will be returned and founder Patrick Brunner would also be required to pay US $26,000 in disgorgement fees. [9] 1Broker registered in Marshall Islands We are pleased to let you know that we settled the two lawsuits without admitting or denying the factual allegations of their complaints on March 4th 2019.” SEC did not bring any charges against (or ) but made it clear that federal securities law applies to anyone who offers securities in the US or to US citizens.[8] The DAO Slock.it [ ] ICO planned on August 1, 2017. Harbour not Harbor cancelled ether raised after SEC’s investigation several days after the ICO. Protostarr refunded ICO that promised 13x profit was . PlexCoin halted by SEC **Munchee’**s MUN Token was described as multiple times in their whitepaper, but it to be a . Munchee stopped the ICO ( ) and returned the proceeds while cooperating with the investigation. utility SEC concluded security which raised US $15 million In Conclusion Yes. Startups and Small & Medium Sized Enterprises (SMEs) are often facing cash crunch barriers for them to access capital markets doesn’t help. Young and innovative firms should not be restricted by existing system. Should STOs exist? Security tokens can have a huge impact on the financial system and society at large, as they combine the elements of blockchain technology, especially transparency and security, with the legal certainty of traditional financial instruments. This allows firms of any size to securely enter this new evolving ecosystem. Security tokens promise to provide startups and SMEs with an alternative form of financing that gives rise to a new capital market with 24/7 trading that obviates the need for brokers and bank custody of securities.[5] Perhaps. STO projects are usually registered entity which add to the legitimacy of the project and have the issuers accountable for their actions. Are they better than ICO? Does regulations mean Security Tokens will see upward-only growth ? Not really, but sure they are a regulated form of crowdfunding and have tremendous potential to change the securities markets. A on tells us that even the highly regulated traditional market is also driven by hype. is still feared among the investors. should be a lesson that even though the businesses are at times legit, the valuation should be accessed with utmost care. Just because the offering is now called ICO or IEO or STO - it still is risky, and being informed is important. Netflix documentary The China Hustle Financial crisis of 2007–2008 Dot-com bubble There is an old joke that the biggest lie on the Wall Street is that - This Time, It’s Different. — [Disclaimer] This article is not a legal advice. The views are personal and the ones that refer to external sources belong to them. Sources The DAO (organisation), wiki - https://en.wikipedia.org/wiki/The_DAO_(organization) Cryptocurrency Regulations - https://medium.com/@rahulmanuwas/cryptocurrency-regulations-a-complete-summary-912e6de0c7a4 Hacker, Philipp and Thomale, Chris, Crypto-Securities Regulation: ICOs, Token Sales and Cryptocurrencies under EU Financial Law (November 22, 2017). European Company and Financial Law Review Forthcoming. Available at SSRN: or https://ssrn.com/abstract=3075820 http://dx.doi.org/10.2139/ssrn.3075820 The Security Token Standard - https://thesecuritytokenstandard.org Ante, Lennart & Fiedler, Ingo. (2019). Security Token Offerings on the Blockchain: Capital Market Access for SMEs?. 10.13140/RG.2.2.21378.94408. Invenium Capital Partners - https://www.coindesk.com/66-million-building-to-be-tokenized-on-ethereum-blockchain-in-record-deal Coindesk report on Templum hosting token sale — https://www.coindesk.com/regulated-trader-templum-hosts-security-token-sale-for-luxury-resort Sean Au & Thomas Power (2018) Tokenomics - https://www.packtpub.com/big-data-and-business-intelligence/tokenomics Coindesk report on 1Broker - https://www.coindesk.com/sec-cftc-charge-bitcoin-futures-firm-1broker-with-securities-law-violations

Security Token Offerings (STOs)

A Comprehensive Guide To The Next Generation Of Crypto Funding | (V)ICO | IEO | DAICO | ETO | STO |

Digital Securities Market Research 2019 by Kepler Finance

2018 was an intense year for fundraising on Blockchain. New partnerships or ventures were announced almost every week, traditional financial institutions like stock exchanges have entered the space and lawmakers across the globe started to take a stand on regulation. As we’re entering 2019 there are a few things we should expect in the coming 12 months. Regulatory certainty will bring new investors into play. Regulators are finally catching up with innovation and as we can see more for businesses being put into place we can subsequently expect more traditional investors, including venture capital and institutional investors, to enter the space. will play a vital role, as it will bring new types of asset classes on-chain, including those investors are already familiar with , like equity. New sources of capital are likely to accelerate the market’s maturation and fill a gap left by a dropping market capitalization of the biggest cryptocurrencies over the past months. clear guidance Tokenization Investors and businesses alike have been wondering whether and how Blockchain will impact the classic venture capital market, and while the first security token offerings were launched over the past weeks, it can be concluded that tokenization rather enhances enhances, than replaces existing solutions. Blockchain’s is not disrupting the way companies fundraise money, instead it offers certain benefits. For example, is an effect of token interoperability, which could make security tokens potentially tradable on any crypto exchange worldwide (if regulatory certainty is given). increased liquidity The relation between primary and secondary markets will evolve. The relation between primary issuance platforms of tokenized assets and secondary trading platforms, including traditional stock exchanges, will once specific regulation will be given. Due to that, it is reasonable to expect more movements in the space, including consolidations. Developing their own secondary markets is a natural evolution for tokenization and issuance platforms, thus we should soon see mergers and acquisitions (as an example, coinbase has acquired Keystone Capital Corp.). become much clearer 2018 has been a big year for traditional stock exchanges trying to enter decentralized markets, including the biggest players in the market. We have heard of many partnerships being established that enable the flow of know-how between traditional finance and DeFi, and in the coming months we should expect many of those to come to fruition. User-centric decentralization & Blockchain startups. Many crypto companies that conducted ICOs back in 2017 were expected to deliver their products by 2018. Users should have then be able to use new decentralized services in exchange for previously bought utility tokens. But, for the , this did not happen which renders most utility tokens useless. overwhelming majority As the Blockchain community continues to mature and develop much-needed infrastructure, it has also realized that in order to live and flourish it needs clients. And clients, in turn, need simple solutions that they can intuitively understand without any special skills. As a consequence, in 2019 we should anticipate Blockchain companies to put a greater focus on business models, user experience and delivering the actual product. Immersed in innovation, crypto companies have neglected some of the necessary administrative and operational functions. This includes tax-related matters, like how to report your crypto earnings at the end of the year, how to tax tokens which do not have a clear tax classification, or how employees should report their earnings often paid in tokens. Companies will have to extend their focus from managing the product to putting emphasis on real-world operations. Such a development will contribute greatly to limiting the discrepancy between the crypto and the startup world. Ultimately this might even impact how crypto companies raise capital (We might see more VC investments instead of ICOs/STOs?). In other words, it is time for crypto to get anchored in the real world. STOs will find their place. As the number of non-Blockchain companies conducting their private or public rounds increases, we might expect to get a clearer picture where exactly STOs will position themselves among existing fundraising avenues. Many companies are too big and mature to conduct additional VC rounds, but are yet too small to go public on a traditional stock exchange. We might see this pre-IPO gep getting filled by Security Token Offerings. So far, STOs have proven themselves to be a natural fit for this segment of the market. DeFi is just a new term, but it carries a lot of meaning. 2018 has been a breakthrough year for traditional financial institutions and companies in Blockchain. We have seen almost every major player to enter the space and launch some kind of sandbox or innovation lab. The Opportunity in decentralized applications has been noticed by the bull. In the coming months we should expect an even greater commitment to building Blockchain products. However, the dynamics have changed and while for a long time the motivation for getting involved with Blockchain was curiosity, it is now fear. The threat of not having more robust applications with greater connectivity is far too big to be ignored by any business. And maybe, just maybe, some folks will finally understand that blockchain isn’t just “a magic internet currency”, but a powerful technology that enables a variety of different applications. What are your predictions for 2019 in Blockchain? Let us know in the comments. Thanks to my colleagues, Zoe Adamovicz, Aga Sarnecka, Piotr Stroinski, Alex Mole and Marlene Ronstedt for contributing to this material. Jeremi Jak — heading communications at Neufund , an end-to-end solution for assets’ tokenization and issuance. Get in touch with me on Twitter or Telegram .

Security tokens & DeFi predictions for the 2019

A Comprehensive Guide to the Next Generation of ICOs & Crypto Funding | The Rise, Boom, Bust, &…

Lessons learned from the Blockchain Circle’s workshop by and in . Workshop Blockchain Circle ConsenSys Rent24 Crypto markets get bloodier by the day. But does it mean, that the blockchain technology failed? Last Friday we started a and in . During the day we skimmed through the recent use cases of the technology. Here is a list of 20 remarkable use cases for 2018: workshop series of Blockchain Circle ConsenSys Rent24 1. Real estate tokenized the first real estate on the blockchain. is real estate shares. Brickblock Indiegogo tokenizing Photo by on Element5 Digital Unsplash 2. Voting 150 via a blockchain-app. E-Voting on the blockchain. Japanese city the test of a blockchain-based voting system for local development programs. West Virginians voted South Korea is testing Tsukuba completed Photo by on Element5 Digital Unsplash 3. Identity solutions Swiss Federal Railways are the identity solution. City of Antwerp is for the administrative tasks. is a blockchain powered id for refugees. testing uPort testing Jolocom MONI providing Photo by on Roland Lösslein Unsplash 4. Equity token offerings listed the first companies on it’s ETO (equity token offerings) platform. Recently they $3m in an ETO. NEUFUND raised Photo by on M. B. M. Unsplash 5. Marine insurance , a blockchain-powered platform for marine insurance (by EY, Guardtime, A.P. Møller-Maersk, Microsoft) is now in a . Insurwave commercial use Photo by on kinsey Unsplash 6. Crypto banking (in cooperation with ) licensed crypto and fiat banking. Bitwala SolarisBank introduced Photo by on Jonas Leupe Unsplash 7. FX transactions & bilateral payments and a foreign exchange transaction using blockchain. and the IBM for bilateral payments. Commerzbank thyssenkrupp replicated Goldman Sachs Morgan Stanley used solution Photo by on Floriane Vita Unsplash 8. Food safety Insurance is blockchain for beef exports. selected suppliers to use blockchain. is with the startup . Australia’s National Transport testing Walmart requires US Dairy company Dairy Farmers of America (DFA) cooperating ripe.io Photo by on Rachel Park Unsplash 9. Repurchase agreements Russia’s major bank a smart contract powered repurchase agreement. Sberbank completed Photo by on Artur Matosyan Unsplash 10. Stock exchanges is a bitcoin exchange, to securities on the blockchain in 2019, the blockchain to record shareholdings and manage the clearings. NYSE launching SIX offer SAX using Photo by on Aditya Vyas Unsplash 11. Tokenized ownership a $9M Stradivarius Violin. painting was on the blockchain. Mattereum tokenized Andy Warhols tokenized and sold Photo by on Baher Khairy Unsplash 12. Licensing & IP and blockchain startup a software license management application. Accenture Digital Asset rolled out Photo by on Fotis Fotopoulos Unsplash 13. Certificates Companies in renewable energy certificates on a blockchain of . Singapore can acquire SP (Singapore Power) Group Photo by on Efe Kurnaz Unsplash 14. AdTech with the blockchain startup to minimize the ad fraud. Toyota partnered Lucidity Photo by on Steven Roe Unsplash 15. Patient Data is on a network to support blockchain solutions for patient data. A in Taiwan a blockchain powered platform for medical records. BlackBerry working Medical University Hospital launched Photo by on rawpixel Unsplash 16. Land Registry The government of , Australia, is to trial a blockchain solution for the land registry. Africa’s first multinational land registry is in and . New South Wales planning to be launched Kenya Ghana Photo by on Breno Assis Unsplash 17. Power grid & peer-to-peer energy markets The is on a blockchain-based power supply system. Korean government working 18. Peer-to-peer payments Japenese telecom company the proof-of-concept for a cross-carrier P2P payment service. Softbank finished Photo by on rawpixel Unsplash 19. Automated devices a new patent application for automated drone delivery on the blockchain. Walmart filed Photo by on Diana Măceşanu Unsplash 20. Digital evidence is the use of blockchain to secure digital forms of evidence. U.K. Ministry of Justice exploring Photo by on Matthew Henry Unsplash Let’s keep in touch. Follow us on Telegram , Linkedin or sign up for our newsletter .

20 Blockchain Use Cases for 2018 You Should Know

ICO’s Have All But Completely Exited Stage Left. Enter The Security Token? As the great cryptocurrency winter of 2018 extends its grip by yet another month, at various blockchain conferences worldwide has been rife that a is on the cusp of forming. This new breed of digital assets is one that seeks to comply with existing regulators, rather than to subvert. Security tokens are are programmatically designed to be compliant with relevant regulations. In the words of influential crypto podcaster and fund manager : anecdotal evidence security token wave Anthony Pompliano If cryptocurrencies like Bitcoin are considered “programmable money” then you can consider Security Tokens a version of “programmable ownership.” With recent examples of assets being tokenized ranging from the , to a , to a Picasso painting (facilitated by a certain ), to private shares of startups from and , momentum is clearly favouring this nascent development. Whisper it, but we may even be witnessing the first shoots of a transition from the wild west that was ICO-mania making way for a ‘Security Token Offering (STO) spring’. St. Regis Aspen Resort New York real estate fund John McAfee Germany Brazil Setting The Scene Before I proceed any deeper — and without suggesting that STOs will necessarily step in to fuel yet another market-wide bull run (out of scope for this piece), I would highly recommend that you revisit this great introductory piece on tokenization: _Not everything will be tokenized, but those that can be will be._hackernoon.com How does tokenization work, anyway? Followed by this other persuasive piece which lays out the full transformative potential for the security token space: _Last summer I wrote Traditional Asset Tokenization, in which I hypothesized that a broad array of assets will move to…_hackernoon.com The Security Token Thesis In short, there are a whole host of benefits driving the security token thesis for mainstream adoption, including 24/7 markets, fractional ownership, rapid settlement, automated compliance and asset interoperability. The purpose of this article is to provide the reader with an understanding of what we define as the — think of it as a series of production line steps which are necessary to create and trade a security token — and an overview on how the ecosystem is shaping up around these layers, especially in markets with more developed regulatory frameworks relevant to STOs such as the United States. security token value chain The Security Token Value Chain (aka Yet Another Stack) The following provides a layered structure of how we’ve classified the various security token ecosystem players today (from bottom to top): hamburger Deal Flow Origination Issuance Platforms Services Secondary Market Trading Defining The Security Token ‘Ecosystem Stack’ Today While the above provides some form of general structure around the process, do note that some of the activities (e.g. auxiliary services) may overlap across multiple other layers, and/or differ entirely in various other flavours as designed by the platform stakeholders. Deal-flow Origination We begin with the very bottom of the security token hamburger stack. Simply put, deal-flow origination refers to the process of matching the demand and supply of capital for investments. The degree of customer accessibility to these investments vary along a spectrum. On one end there are more open platforms such as Kickstarter where the average retail investor Joe may participate in funding the development of cool product ideas; while on the other end there are platforms such as where only accredited investors are able to join in on equity investments in Silicon Valley-based technology startups. AngeList As a rule of thumb, the general requirements for an aspiring investor to partake becomes more onerous as factors such as deal exclusivity, target capital raise, average cheque size and financing complexity increases. Said requirements usually entail attaining investor accreditation status, more disclosure requirements and sometimes higher fees. Current notable deal-flow origination platforms involved in the STO space include , and . Indiegogo — most notable among the examples for having been in the traditional crowdfunding space for about a decade — lent its credible reputation to back the ambitious by being the platform through which investors could participate in the initial STO. Most platforms have side-stepped requirements to file for traditional securities offerings by allowing only accredited investors to participate, while some such as Republic allows for regular retail participation via relying on an alphabet soup of ( ). Republic Crypto SeriesOne Indiegogo St. Regis Aspen Resort tokenization project SEC regulatory exemptions more on that later Fancy purchasing a fraction of a fancy ski resort? Issuance Platforms and Core & Auxiliary Services Moving along to the meat within the security token stack, we come to the issuance platforms. These players specialize in providing the technical smart contract know-how necessary for the primary issuance of programmable security tokens. They provide solutions that handle for things like investor accreditation, KYC/AML requirements, capital raising taxation, as well as the myriad of other more specific shareholder provisions (e.g. first rights to refusal, residency requirements, shareholder ownership concentration rules, etc.). They aim to address as far as possible the common needs of the majority of asset issuers. The goal for these solutions would be to automate compliance while maintaining immutability and process transparency. Implemented well, such solutions will ensure that situations such as the — whereby human error during various ledger reconciliation processes resulted in duplicate shares of Dole Foods being issued on various ledgers — does not wastefully occur. Dole Foods case Most issuance platforms come bundled with services aimed at meeting the common requirements of potential STO issuers in a bid to make up a full-service solution. This would include dashboards for token issuers, and functionalities to allow for them to easily conduct corporate actions such as shareholder voting, rights issue, dividends, interest payments, revenue share distribution and ESOPs, with the aid of document signature tools for token-holders. Examples include , which enabled the tokenization of the Aspen project on Indiegogo, as well as Coinbase-backed startup , which had facilitated the tokenization of two blockchain investment funds, and . Templum Securitize Blockchain Capital SPiCE VC Rounding off the list of services necessary are trust companies and custodians — a category of companies that are absolutely integral to making tokenization tick, especially in the case of most assets that are not (i.e. today’s “ ” assets such as stocks, real estate and art). Their jobs as custodians are to ensure that these assets — be it the stock certificate, property title deed, physical painting — are being held in a secure location, with token-holder ownership rights being clearly defined and legally upheld, and that the tokens in issue that represent them are always counter-balanced in a 1:1 ratio by the underlying asset. Key players to have established this niche for themselves are and . natively-digital real-world PrimeTrust BitGo Secondary Market Trading Finally at the very top, secondary market trading is the layer which provides security tokens with their much-heralded benefits of liquidity and 24/7 trading & settlement. An intuitive, easy-to-use trading interface constitutes table stakes for any form of digital asset exchange product these days. For any STO exchange to materially value-add to the user experience, they will have to be cognisant of the rules of the legal jurisdiction that they operate in, as well as that of its customer clientele. For instance, they may automatically facilitate reporting on capital gains taxes applicable for American users who have profited through trading on the secondary market, but not for Singaporean users (where capital gains taxes do not apply for retail investments). Other differentiating factors relate to the user experience journey. Exchanges can be set up such that they give users the option of self-custody of their own digital assets, or — for those who are less savvy technically with managing private keys — provide them with just a simple, user account plus password system. Exchanges can also help reduce the time taken for trade settlements on their platforms through the use of . Stablecoins will allow for such trades to happen atomically, which implies that I receive my sales proceeds the moment that my sell order gets paired with an interested buyer, with my security token going the other way in one single, simultaneous action. This is an exponential improvement over the settlement speed for securities trading in existence today, where T+2 represents the gold standard (cross-border stock trading settlement sometimes require T+5 days even!). stablecoins A couple of juggernauts have already made their mark. has raced ahead on the partnerships front, forming a to list the tokens issued by an assortment of niche issuance platforms. , a blockchain subsidiary of NASDAQ-listed company Overstock, has built up a sizeable war chest after the conclusion of its own US$134M in August. Purchasers of their tokens are promised regular dividend payouts tied to the profits generated by their exchange business. OpenFinance Network whole slew of collaborations tZERO STO round The Land Grab Race Is On Calling the space fragmented would be an understatement at this point in time; slide not an exhaustive representation of all notable players The current landscape remains largely fragmented with players finding their niches and gradually establishing partnerships. While there are unique cases of projects such as that are seeking to provide a complete end-to-end solution for potential STO issuers — or rather ETO (equity token offering) issuers, as they have chosen to term it, most are specializing within a certain layer within the stack , before partnering with other projects that complement them. For example, — a tokenized fund specializing in investing in blockchain startups (deal-flow) has partnered with Securitize for the issuance of their tokens, and also with OpenFinance Network to enable the of their tokens. Neufund SPiCE VC future subsequent trading Another observation to make would be that the structure of most of these blockchain startups are rather akin to that of a “traditional” tech startup, operating on a service revenue-based business model. Exceptions include those which have made use of STOs to coordinate platform incentives and/or raise capital (e.g. Neufund, SPiCE and tZero) from investors in exchange for the promise of future dividends, along with several others which have done ICOs (e.g. Polymath, Rate3 and TrustToken) or have distributed their tokens via mining incentives (e.g. Ravencoin). Finally, it is also noteworthy to mention that the large majority of these players are based in the United States, highlighting the immaturity — as well as the consequent potential — of the asset tokenization space in other markets. Still Early Days On The Regulatory Front While acknowledging that there have been several forward-thinking, tokenization projects that have made news headlines recently, one cannot stress enough on the infancy of the entire security token space as a whole. Most of the marquee, flag-bearing tokenization proof-of-concept projects so far are just that — PoCs that are being sold to a small, of investors only, in order to stay on the right side of regulators. Mass retail adoption are still some significant way off. ‘real-world’ select group accredited Having said that, it is apparent — and heartening — that the clarity of regulatory exemptions available within the United States has resulted in many security token ecosystem projects and partnerships flourishing there. Ken Nguyen, founder and CEO of Republic was recently interviewed in a great podcast, in the process demystifying the various US regulatory exemptions which STO projects could seek: It does not appear long before other Asian ‘pro-crypto’ jurisdictions such as Singapore and Japan start embracing STO innovations on their shores as well, allowing for the retail investor masses — — portfolio exposure to security tokens serving as proxies for investments which they may never have got the access to otherwise. not just accredited investors This is a thought which truly excites me; imagine the multi-fold returns of having been able to invest in one of the early rounds of equity fundraising for startups such as Grab or Gojek. Think of the whole new design space which issuers could work with to increase customer engagement and loyalty, such as, for example, allowing for priority booking for token-holders. With jurisdictions like the United States laying the groundwork for others to observe and adapt, what was once solely the domain of the rich and connected may soon become within touching distance of the masses within the near future. Disclosure: I work at Rate3 Network , a protocol that handles asset-tokenization and identity management across both Ethereum and Stellar blockchains.

Why You Need To Know The Security Token Value Chain (aka Yet Another Stack)

Promising greenfield for new entrants or battlefield of incumbents? In our first publication — The Era of Tokenization — market outlook on a $24trn business opportunity , we outlined our granular market sizing of tokenized assets and the potential of a $24trn industry by 2027. As shown, in the short-term tokenization will especially affect standardized issuing products such as Equity or Bonds , benefitting from significantly lower issuance and transaction costs (e.g. a substitution of smaller IPOs with STOs). Subsequently, we expect the accelerating tokenization of smaller and more illiquid and non-fungible assets (e.g. SME shares or Real Estate), attributed to the benefit of easy ownership transfer leveraged by blockchain technology. While the benefits of asset tokenization seem obvious, mainstream adoption and the capturing of full market potential will not only require the current crypto ecosystem to professionalize, but will also require existing business models in the traditional financial industry to adapt. The often-seen reluctance of incumbents to enter the space provides FinTechs and other startups with a multi-billion dollar market opportunity. Business Opportunities At a very high level, the financial services landscape for tokenized assets can be consolidated under the following framework: Within this article, we will focus on the financial services opportunities, while just briefly touching on the infrastructure layers. A. Retail Banking (Opportunity for new entrants: low to middle) In our framework we allocate standard banking products such as savings/checking accounts, loans, debit/credit cards payments, mortgages (and many more) to Retail Banking. To allow mainstream adoption of tokenized assets in the private sector, especially of cryptocurrencies, innovative Retail Banking accounts will evolve, or incumbents will adapt existing accounts to crypto-methodology. We observe this field being divided into three main groups of market participants: FinTech players with a hybrid model (FIAT & Crypto) combining traditional finance with digital assets — e.g. (United Kingdom) Revolut FinTech players with a crypto focus — e.g. (Germany), (Singapore) Bitwala TenX Traditional Banks launching crypto-offering — e.g. (Liechtenstein) Bank Frick Within the first category, has been the first mover, offering their strong “traditional” retail customer base the option to buy/sell a range of cryptocurrencies. While their biggest European competitor has yet not entered the battlefield, we expect them to do so in the near future.Within the second category we can list several projects that are struggling to succeed (i.e. , WaveCrest, ) due to regulatory risks or because of collapsing business models, as traditional banks refuse to partner/process, for example, credit card payments. Revolut N26 TenX Amon Traditional banks in the third group are yet the most reluctant to enter the space, mainly because of regulatory uncertainty that results in the risk of jeopardizing their traditional revenue streams. Overall, the hybrid model of FinTech players seems to be the most likely to capture the market potential at this point in time. B. Corporate Banking (Opportunity for new entrants: low to middle) Traditional Corporate Banking products include loans, syndicated loans, trade and project finance, among others. Over the last months, we have especially seen more development of trade finance use cases for blockchain technology. Incumbents are trying to defend disruption through formation of industry consortia (e.g. / ), leveraging blockchain technology to digitize letters of credit and bills of ladings, track payment guarantees, and expedite receivable discounting. Startups like and (both USA) already show significant traction in the space, while a win against strong industry consortia won’t come easy. R3 Corda Flexport Tradeshift C. Merchant Banking (Opportunity for new entrants: high) As in the traditional financial landscape, buy-and-sell side services (Merchant Banking Services) complement financial services for digital assets. Service providers (sell-side) for issuers will be required to develop, register, and sell securities to finance their operations. Those service providers will need to cover compliant KYC/AML processes, technological capabilities of structuring tokenized assets, as well as distribution channels towards the investor side (buy-side). We currently see several new entrants trying to establish market standards for security tokens with their own protocols/token-structures, such as (Canada), (USA), (Germany) and (USA). It has to be determined whether this will be a race to the bottom or if several protocols across different jurisdictions will survive. Polymath Securitize Neufund Harbor To properly develop buy-and-sell side services, close cooperation with technology standards/protocols, law firms, and market makers will be required, consolidated under the roof of “full-service providers” (e2e tokenization services). D. Brokerage (Opportunity for new entrants: middle) Facilitators in the buying and selling of assets are needed for tokenized assets just as much as they are for traditional financial assets, since they are the key to trigger sufficient market volumes/liquidity and provide efficiency through investment advice and market information/transparency. The current crypto ecosystem suffers from low-volume order books across a fragmented landscape of exchanges. For a “big money” inflow from the institutional side, brokerage infrastructure has to evolve in order to allow liquidity for high-volume transactions while avoiding significant market movements/manipulations. Several new players are working on OTC solutions, reducing overall transaction costs and ensuring best-price-execution, such as and (both USA) as well as (United Kingdom) in Europe. Some of these new players are even backed by traditional institutions as in the case of , with Goldman Sachs. Circle XTRD Huobi Circle E. Custody (Opportunity for new entrants: high) Lack of institutional custody solutions is one of the key roadblocks for accelerated growth in the current tokenized assets ecosystem. In the majority of jurisdictions, qualified custodians (licensed) are required by regulators — for example once a fund-size grows beyond a certain threshold (e.g. >$100mn). However, these players are currently non-existent or are offering unsophisticated product offerings. Even without the regulatory requirement of qualified custodians, asset managers are craving custody solutions that help them to store the private keys to their tokenized assets, as safeguarding of assets is not among their core capabilities. Furthermore, investors of the asset manager’s fund demand sophisticated security mechanisms, only to be provided by custodians. As of today, the combination of regulatory requirements and lack of trusted institutional custody solutions keeps a vast majority of traditional asset managers from taking positions in tokenized assets. To ensure sophisticated blockchain functionalities such as staking (as in proof-of-stake) or dividing/voting rights (as in tokenized common shares), online/hot-storage custodians are required. F. Exchanges (Opportunity for new entrants: middle to high) Over the last few years, a large number of crypto-exchanges have evolved, providing liquidity to the secondary market of cryptocurrencies and utility tokens. The vast majority of those are not yet regulated by their local regulating bodies and, hence, not qualified to offer security tokens representing, for example, equity — which is expected to trigger the next wave in the ecosystem. This subsequent lack of liquidity and market depth is a significant roadblock for accelerated growth and can only be conquered with a rapid evolution of licensed exchanges or traditional exchanges entering the digital asset space. Promising new entrants are as well as Overstock’s (both USA), which are among the first US-based regulated security token platforms. Rumors continue to swirl that traditional stock exchange (USA) may be close to entering the battlefield, which still remains unconfirmed by the organization. In Europe, (GSX), (MSX), as well as (SIX) are known to launch digital asset operations the first half of 2019. Overall, traditional exchanges seem to have better cards to win this business opportunity, as security regulation (e.g., German BörsG) foresees that exchange market participants need to be “qualified” — leading to the tiered system that banks participate in exchanges (and not end clients) in the traditional world. This would likely also happen to crypto-exchanges, leaving them with advantage due to their strong B2C (end client) focus. OpenFinance tZERO Nasdaq Gibraltar Stock Exchange Malta Stock Exchange Swiss Exchange I.-IV. Infrastructure Layer The infrastructure layer is the necessary basis for the foundation of a solid landscape of financial services for tokenized assets: Ongoing technological innovation and maturity of blockchain technology I. Technology: Consistent and clear regulatory guides across jurisdictions with regional/global standards. (The current situation shows jurisdictions moving independently — e.g. Malta VFA license). II. Regulation: Transparent taxation methodology and legislative guidance III. Tax & Legal: Increasing insurance and reinsurance offerings for tokenized assets for risk-diversification IV. Insurance: To unlock the ~$24trn business opportunity, significant development across the financial landscape of tokenized assets is required. The infrastructure layer is the basis for a solid foundation of the ecosystem, but core-value will be captured across the key financial pillars. In the foreseeable future, Custody, as well as Merchant Banking services, are expected to contain the most significant business opportunities for new entrants, as they are crucial for the professionalization of the landscape. In our next article, we will dive deeper into the custody landscape of tokenized assets, outlining the current product offering and introducing promising new market entrants. - Follow us on for future articles: Medium @Finoa_Banking - Visit our website to learn more about us: https://finoa.io/ - To always remain up-to-date follow us on and scan the QR Code to subscribe to our newsletter Twitter

Mapping business opportunities in The Era of Tokenization — a $24trn game

Tokens have come a long way from being a fancy concept developed by computer geeks dreaming about total decentralization to a billion dollar industry involving world-leading companies like and and various governments, including . Lately, there have been a series of developments concerning the tokenization of various assets, ranging from stocks to art pieces and everything in between. Companies use these tokens as bonuses and loyalty points, their stocks, or some go even further by listing them on various exchanges. Is this becoming a trend? If so how did we get here and what is the next step? BMW Rakuten India tokenize What are tokens used for? Regardless of what platform they work on, the concept remains basically the same: a token is a representation of something in its ecosystem. What can tokens be used for? For voting, for transferring value, or for giving access to something. Many projects now implement various types of tokens; more than of them. 2,000 https://coinmarketcap.com/charts/ We can even divide all tokens into a few : classes — This is the most common application that we can see nowadays. Tokens serve as a vehicle of value to create an incentive for users to use the system, becoming a part of an intricate . Value exchange token economy — Tokens can serve as votes, giving their owners the right to participate in the decision-making process within the system (setting fees for transactions, choosing representative nodes to process blocks, agreeing with applying various upgrades to the network — all these topics require voting). In various blockchains, such as Ethereum or EOS, voting works differently, but the common thing is that all of them involve tokens as the primary manifestation of their owners in a decentralized environment. Voting rights — In various decentralized applications tokens are used to gain access to various functions. For example, burns tokens for each transaction. Toll REQ — The , , , even on another blockchain — everything can be tokenized and traded. Tokens represent the right of owning this tokenized asset in that case. A representation of another asset US dollar real estate precious metals Bitcoin So that’s a great variety of tokens, right? All these classes of tokens exist in the current blockchain networks. But it wasn’t like that initially. There was no infrastructure at all. First tokens, ERC20 Initially, Ethereum tokens didn’t have any common standard. It was really hard to issue any token or build it successfully in the whole Ethereum ecosystem. Interoperability and exchange required unification and in the early days of Ethereum, every issuer had to develop their own version for every function and to their own specifications, including functions for transferring tokens. So every token had to be dealt with in its own unique way, and exchanging one token for another required complex coding. At the same time, making one little mistake in the code could leave a vulnerability in the contract and allow malevolent individuals to use it to, for example, users’ funds. hack or freeze On November 19, 2015, Fabian Vogelsteller a specification (the 20th) that contained a set of that was well-received by the Ethereum community. From that point, issuing and trading tokens became a bit easier because it was now possible to create a proper infrastructure. It was enough for any exchange to implement a framework to support the new ERC20 tokens to add the thousands of tokens from new projects. That gave a green light to countless ICOs and the industry began to . proposed functions flourish In 2016, ICOs raised $90 million. In 2017, ICOs raised $6.2 billion. In 2018, ICOs raised $7.2 billion. https://www.icodata.io/stats/2016 As we can see, it’s a 68x growth from 2016 to 2017. It became the preferred way to raise money for a countless number of startups. ICOs became a hot topic and attracted attention to the blockchain, showing off its implementations and its potential. Stablecoins entering the scene ​While the market developed, it became obvious that it’s necessary to have the ability to trade all these tokens against fiat currencies. But why? Well, there are several reasons. Initially, tokens (or altcoins) were traded against Bitcoin, and that was the only available pair. However, Bitcoin is very volatile as well, so it’s necessary to take two prices into account when trading. This proved to be impractical for many traders. In the end, Bitcoin should be exchanged for fiat anyway, thus the goal of any trader or investor is to increase his portfolio against the dollar or euro. In times of extreme volatility, it’s dangerous to hold both altcoins and BTC; that may result in big losses. It was very hard to trade BTC to fiat instantly only to then reenter when the conditions of the market were improving. https://www.pinterest.ru/pin/429530883183496834/ So a stable asset, existing in the same crypto space as all other tokens, solved many problems at once. (USDT) was the first stablecoin added to major exchanges, such as Bitrex and Bitfinex. A year later, new stablecoins ( , , and ) were launched as an alternative to USD, each of them fully backed by real audited funds in a bank account of the company that issued its stablecoins. Tether TUSD GUSD USDC There is still plenty room for many other assets — the current market capitalization of all stablecoins is only , and the whole market is at $222 billion at the time of this writing, so there wouldn’t be enough stablecoins to close every open position on the market, if needed. $2.6 billion Gold and silver-backed stablecoins After fiat-backed stablecoins, new projects started representing something else that was stable in the real world. And what might comes to mind when you think “stable” on the market? Gold and silver. https://goldprice.org/ Precious metals are good candidates for tokenization, holding, and trading because their history extends for thousands upon thousands of years and they have the reputation of being a defensive asset. Both gold and silver are presented by stablecoins. Two coins, KAU (gold-backed) and KAG (silver-backed) are pegged to gold or silver at a 1:1 ratio. If the price of the coin decreases, it’s possible to sell it for the bullion price, gaining profit. Or you could just spend it by paying with the Kinesis debit card anywhere Visa is accepted. This project is backed by , leading exchange platform of physical precious metals for the better part of a decade. Kinesis bullion the Allocated Bullion Exchange Tokenized stocks The issuance and trading of stocks currently involves many parties — that organizes IPOs, the stock exchange itself, a broker for the clients, a to store the stocks, and, of course, the regulators that allow the IPO to take place. The issuance of shares via the blockchain would be pretty much the same process, but it would allow using smart contracts, for example, to restrict large initial buyers from selling anything for a predetermined amount of time. It would also not be reliant on the exchanges and depositories that operate in their respective jurisdictions, unable to add foreign citizens to the lists of holders of their traded stocks without the proper infrastructure. It would, however, be possible to trade stocks via blockchain-based solutions all around the world. an underwriting bank depository The registry of owners would be unnecessary, because the token itself is a right of ownership and it can’t be falsified — or else it would be possible to create a global database with linked to certain blockchain addresses. Anyone would be able to see the list of any company’s shareholders, because the identities of the owners would be shared in the moment the stock was acquired. digital identities The Malta Stock Exchange a partnership with to tokenize its stocks. It’s only a matter of time until more exchanges start to join as they come to learn of the benefits of this process. Although this doesn’t mean the death of the exchanges, because for the majority of users the convenience of use will always be of the utmost importance. signed Neufund What’s next? Tokens are used to access decentralized applications. They are used as vehicles to transfer fiat money, gold, silver, shareholder rights, property rights, voting rights, or whatever else people deem valuable. They are used as bonus points. Why is so appealing for companies to use tokens instead of good ol’ paper money? Because it’s easy to issue a token, the transaction is fast, and it’s nearly impossible to hack a blockchain address and steal stored tokens. All information written to the blockchain can’t be rewritten or erased, it can’t be falsified. In that case, all tokenized stocks, for example, can be stored securely on their owners’ accounts and won’t need any depository to take care of them. With everything being tokenized and stored on the blockchain, it would be possible to instantly buy real estate, cars, art, or gold with the Kinesis Monetary System. Kinesis currencies will circulate not only in their established frameworks, similar to the New York Stock Exchange, but also on the free market. Today, if you want to sell an apartment to buy stocks, you can’t do it in one step. You’d have to sell it for fiat money, deposit that money into the exchange, and only then will you be able to buy stocks. In the world of the future, you’ll be able to exchange a token, representing the ownership of your apartment, for a bunch of tokens that represent the shares of some company. Will it benefit anyone? Definitely! The instant exchange of value without any control will create new business models, save time, and allow people to pay fewer fees. All this can happen in a transparent environment. Isn’t that the kind of future you want to live in? We think so. About the author: — Founder of Geekforge.io and Howtotoken.com. Interviewing the top 10,000 worldwide experts who reveal the biggest issues on the way to technological singularity. Join my . Kirill Shilov #10kqachallenge: GeekForge Formula

A Brief History of Tokens: A Journey from the Past to the Distant Future

2018 was an undeniably tough year for crypto — whichever way you slice and dice it, the industry as a whole felt it. Whether you’ve been dabbling in BTC for years or bought your first stash of Satoshi in late 2017, the last 12 months have been a challenging period. That said, the visionary vibe of this Maltese Summit was a stark contrast to a glum past year. No longer were people fixated on price and Bitcoin Futures contracts, instead, the focus was on building future-proofed projects, sustainable development and working with, not against regulators — leaving even the cynics giddy with optimism for the future. The Coinweb team landed in Malta on Hallows Eve. No ghosting here. Over 8,500 crypto enthusiasts occupied over three floors of the Intercontinental Hotel, resulting in one of the industries largest and best-attended events to date. Amongst the hectic schedule of meetings, talks, pitches, hackathons, bar crawls and interviews, there was barely a minute to breath Maltese sea air. Being the world’s first ‘crypto friendly’ jurisdiction, the conference attracted a plethora of legal and financial advisory firms all hoping to provide services atop the newly formed regulatory haven. The usual ICO consultancy and listing services showed face, however there was a notably larger presence of Exchanges and OTC providers, making the conference appear more corporate than previous events; indicators that the industry is moreover maturing. Crypto like John McAfee and the Winklevoss Twins were spotted on the island, physically embodying the attention being paid to Malta by the industry elites. ‘celebrities’ Tyler and Cameron Winklevoss (centre right and left) pictured with Joseph Muscat (centre), PM of Malta. Between the countless panels and speaking events, the ICO Pitch competition was high on the summit agenda. Each conference day, projects were showcased and then scrutinised by a panel of judges including and , with $25,000 cheques being written to the winners like , , and , all ones to watch. Scott Stornetta Charles Hoskinson Rise AE Token Tatua GoMama Eric Ramos of GoMama posing with his ICO Pitch winnings. STO projects, like , have been gaining significant traction and going forward they seem to be a crucial part of fundraising within the space. GoMama The Malta Stock Exchange’s (MSX) fintech arm back in July of this year, and together look to supply projects a platform under which they are able to issue and trade tokenised Securities. The disruption that this will cause to existing fundraising models such as the ICO is yet to be seen, however the implementation of STO’s seeks to bring investor protection and increased security when interacting with digital assets which is, on balance, a necessary and positive step. Over the course of the event, we were all reminded of the efforts being exerted by so many projects in so many ways, pushing hard achieve the same goal; elevating this industry and technology to the next level. partnered with Neufund Coincidentally, the came into force on 1st November, day one of the conference. A notable day all round, as it forged a legitimate regulatory foothold for digital assets in a respectable jurisdiction. If the VFAA was not enough, the Prime Minister of Malta himself Joseph Muscat, informed the summit of his aims; Virtual Financial Assets Act (VFAA) ‘to see the sector grow in volume, but also finding new ways technology can improve the lives of people’ Prime Minister of Malta addressing the Malta Blockchain Summit. With forward-thinking, technologically embracing policymakers, the future looks bright, not only on this Mediterranean island but for pioneers of this space everywhere. Having been to and experienced Malta and the summit first hand, we see so much future potential the industry and a country playing host to its development. The industry and island determinism is truly beginning to show, with a lot being done to undo the stigma that has been, probably fairly, surrounding Blockchain and Crypto for the last 12 months. Hard work is being undertaken by developers, journalists, politicians, communities and countless others, in order to ensure that the benefits of blockchain can be delivered to areas and individuals where it is needed the most. The Malta Blockchain Summit was a credit to the organisers, but more importantly to the industry and vibrant community. Here’s to 2019! Follow me on Twitter: Kickso

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