Experts State that Finance Firms Need to Transform their IT Infrastructure to Foster Blockchain and Crypto

Andres Chavez
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Experts State that Finance Firms Need to Transform their IT Infrastructure to Foster Blockchain and Crypto

For months, the talk of the cryptocurrency and blockchain industries has been finding ways to achieve mass adoption: more applications and users will surely catapult the field towards the status it deserves and has the potential to attain. However, as it happens with so many things in life, it is far easier said than done.

That is the opinion of a group of experts that claim financial institutions need to have the proper platform to take on such a big challenge. To promote mass adoption of blockchain and digital coins, they need to replace their current internal IT (Information Technology) infrastructure, according to Scottish news site Scotsman.

A Matter of Compatibility

Jeremy Drain, who is associated with crypto-focuses software firm Libra, said that “there is an assumption by some companies that their current infrastructure will accept crypto and blockchain,” but in practice, those companies’ data is too different, and as a result, their current systems cannot work with the blockchain and cryptocurrencies.

Drain spoke at length about the subject at Edinburgh’s ScotChain 18, which focuses on discussing the impact of technology in business and commerce. Other crypto experts that took part in the conference were Deloitte’s Risk Advisory Leader for Fintech and RegTech Kent McKenzie and Cambridge’s Centre for Alternative Finance Apolline Blandin as well as Casey Kuhlman of Monax.

“Immature” Software

Most of the panel talked about the need for standardization in the blockchain world and the regulatory hurdle that is still to be cleared by governments, mostly. In fact, Kuhlman explained that blockchain is still “immature” software, and the fact that there are notable differences among the existing tech structures of each cryptocurrency complicates matters even further.

All the companies that have wanted to experiment with blockchain solutions and have achieved varying degrees of success doing it have taken the time and resources to put together the right infrastructure. “Success stories seem to have one characteristic in common: they needed the right infrastructure in place to ensure the rapid, seamless, and secure transmission and processing of data on the blockchain,” were the words of Michael Young, the CEO of MBN solutions, a recruitment company.

According to Young, numerous firms conduct their due research about the uses and applications of blockchain technology and how it can be seamlessly adapted to their business line and approach, so its presence has an effect on the traditional IT setting of these enterprises and their ability to allow the “new order.”

Known Cases around the Industry

Fujitsu, a well-known IT equipment and services firm hailing from Japan, stated its intentions of building a blockchain-based interbank settlement ecosystem while establishing an alliance with nine financial institutions. The intention of the initiative was to ensure the viability of the blockchain system.

In a similar line of thought, MOEX, The Moscow Exchange, said in June that it wanted to launch an infrastructure capable of letting firms conduct ICOs this year.

By Andres Chavez

Thailand Will Use Blockchain Technology to Combat Tax Evasion

Maria Rodríguez
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Thailand Will Use Blockchain Technology to Combat Tax Evasion

The plan seeks to accelerate the trade financing procedure without expensive costs

Thailand’s government agency for tax collection will use blockchain technology and automatic learning to fight against tax evasion. Ekniti Nitithanprapas, Director General of the Revenue’s Department, detailed that blockchain technology will be used to verify if the taxes were paid correctly and accelerate the tax refund process.

A learning machine will be used to study how taxes are evaded, this gives the tax authority the ability to efficiently monitor tax fraud and create greater transparency. The main objective is to confirm what is really happening.

Since the time of his appointment, Nitithanprapas, who also was the International Economic Adviser at The Thailand Ministry of Finance in 2015, showed how important is the adoption of new technologies such as blockchain, in order to create a system of tax collection.

Torplus Yomnak, a researcher on corruption issues, said that this kind of technology could be used in public procurement; thus, it will promote transparency and accountability. “Blockchain could be used to promote the information’s transparency for the fight against corruption and to increase the power of research”, he explained.

According to the Office of Commercial Policy and Strategy, a department that belongs to the Ministry of Commerce, blockchain technology is considered as the solution that could reduce costs and accelerate the trade financing process while helping in the administrative aspects of the intellectual property’s rights.

A starting way

The exact date in which the department would test the blockchain-based project, and the way it would be done, still unknown. Thailand’s financial environment is currently increasing by including emerging technologies among its crucial procedures. This translates into a desire of growth as a country thanks to the opportunities that current technology offers.

The Department of Revenue has followed the Thailand Ministry of Commerce’s steps, which announced, on October 9th, that decentralization mechanisms would be included in important sectors, such as agriculture and commercial financing, as well as copyrights.

Pimchanok Vonkorpon, a Thai official from the Trade Policy and Strategy Office (TPSO) of Thailand, commented that the study is conducted with the help of The British Embassy in Bangkok. TPSO also wants to create test environments to apply blockchain in the rice export industry.

In September, Kasikornbank, Thailand’s fourth-largest bank, partnered with Visa’s B2B Connect to provide its customers solutions for cross-border payments using blockchain technology. Last October, Siam Commercial Bank, the oldest bank in that country, partnered with Accenture, which is a global consultancy with the aim of launching a platform for supply chains based on blockchain technology.

In India, The Reserve Bank (RBI) is also interested in establishing a special unit focused on emerging technologies, such as blockchain, cryptocurrencies, and artificial intelligence, although this financial institution took a strict approach to decentralized trade since the beginning of 2018.

Thailand and many countries are looking for different fields to use blockchain technology, in order to work for the development of their regions. From education, culture to business this platform is giving solutions thanks to its characteristics and its particularity of guarantee the integrity of data by all the network participants without having to resort to a trusted entity that centralizes the information.

By María Rodríguez

Tool Market for Blockchain Development Presented by Amazon and ConsenSys

Samuel Paz
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Tool Market for Blockchain Development Presented by Amazon and ConsenSys

On November 8th, Amazon cloud computing services (AWS), together with Kaleido, a ConsenSys company, presented a technology trading platform to help companies create their own distributed accounting projects.

This platform was named as “Blockchain Marketplace” is a digital services market in which services and technological tools of Amazon Web Services, Kaleido and other members that join, will be offered for the development of business blockchain projects.

The founder and CEO of Kaleido, Steve Cerveny, explained that only the blockchain represents about 10% of a blockchain technology project:

“There are many other elements such as applications, data, and indispensable infrastructures to reach the production stage,” explained Cerveny.

These elements will be offered in the Kaleido Blockchain Marketplace, according to Ceverny:

“I’m excited to have a whole cloud of integrated blockchain technologies available to our customers. The Kaleido Marketplace is a single point of purchase for everything related to the corporate blockchain. “

From Kaleido, they assure that the first users of its service market affirm that the platform “eliminates 80% of the codings that are personalized and necessary for the development of their blockchain projects”, and thus, facilitating the adoption of the technology of accounting distributed.

The company ConsenSys also states that its platform allows its users to have “with just one click” intelligent contracts and solutions to manage supply chains.

Solution Block

It is not the first time that Amazon Web Services is associated with initiatives to provide blockchain technology tools among its customers. At the end of 2017, it was announced that users of its platform could access the business blockchain of the R3CEV consortium to create their own applications or to try the existing ones.

In early April of this year, it was learned that Amazon filed a patent application for the creation of a database based on the blockchain. A few days later, AWS began offering templates to “simulate” blockchain’s of Ethereum and Fabric, with which it offers its users about 20 options for the creation of their own blockchain network, whether public or private.

Also, as of last month, the AWS branch located in China, announced its alliance with the platform of intelligent contracts and decentralized applications (DApss), to create a blockchain platform for developers and business customers. This platform is of the Baas or Blockchain as a service type, in order to facilitate the creation of this type of applications and smart contracts, which also comply with Chinese laws. The announcement had a great positive impact on the price of the cryptoactive Qtum, which achieved an increase of around 10%.

 By Samuel Paz

A Canadian Bank Opens a Virtual Security Box for Crypto Companies

Maria Rodríguez
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A Canadian Bank Opens a Virtual Security Box for Crypto Companies

The platform seeks to provide cybersecurity solutions to guarantee the safety of customers’ transactions. To date, the project has received more than 200 inquiries

VersaBank, the Canadian bank, plans to offer the virtual security box to support the exchanges of cryptocurrencies and cryptographic investment funds which are used to store digital assets. The key clients of the bank based in London would be cryptocurrency exchange houses and the cryptocurrency investment funds, according to a release published by the financial institution on November 8th.

The name of the project is VersaVault, which completed the beta tests and is about to celebrate its launch. The product was announced in January and the bank signed with two beta users in March, based on its target customers, to start the development.

According to a statement issued by the company, the testing phase focused on ensuring that VersaVault’s design met the requirements necessary for the correct functioning of cryptocurrency exchanges and cryptographic funds. The next objective was to design an experience that would be efficient and timely for customers while maintaining the VersaVault’s characteristics.

As an additional element, the platform seeks to provide digital and cybersecurity solutions technologically advanced in order to keep the security of customer’s information. “VersaVault does not have the ability to drill the customer’s digital security box, nor does it have the ability to look inward, only the customer has the ability to access to their digital valuables and only they know their content”, says one part of the official report.

Wade MacBain, Director of Investor Relations at VersaBank, said that the organization has received more than 200 inquiries about VersaVault. In a statement, David Taylor, VersaBank’s CEO, commented: “While some are considering ideas and plans for a digital safe, we have designed and built this. We are now marketing the first service that provides our customers with the most sophisticated authentication and security technology available worldwide, in which our customers enjoy absolute privacy”.

In fact, VersaBank hired an ex-cybersecurity architect at the smartphone maker Blackberry to head the new project in January; his name is Gurpreet Sahota. “Bitcoin and other cryptocurrencies are gaining popularity and holders who hold them have already experienced that their valuable properties are disappearing because of using less secure digital storage options”, a bank representative said in an announcement earlier this year.

About the financial institution

VersaBank was founded in Saskatoon, Saskatchewan in 1980. Its first name was Pacific & Western Bank of Canada, a name that changed for the current one in 2016; this is because “versa” is the prefix of “versatile”, an idea that the company transmits even in their way of working.

In 1993, it became the first financial institution without branches in the world because it seeks to invest in its base and technological platform. In fact, many of its procedures and loans are channeled electronically. It is another banking institution that opens to the world of cryptocurrencies and that now is dedicated to seeking to offer greater security to those who manage cryptoactives.

By María Rodríguez

 

Ethereum Sets a Tentative Date for its Upcoming Blockchain Upgrade, Constantinople

Andres Chavez
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Ethereum Sets a Tentative Date for its Upcoming Blockchain Upgrade, Constantinople

Ethereum developers have marked January 16th, 2019, in next year’s calendar. It is the tentative date in which the network’s hard fork could officially launch. The fork, named Constantinople, was supposed to be active by November 2018, but there were difficulties regarding the test release that postponed the launch.
Ethereum is the world’s premier altcoin, and the second cryptocurrency by market cap; it is behind only Bitcoin. Naturally, the interest about a hard fork has people in the blockchain community on the edge of their seats.
The expected upgrade of the Ethereum blockchain will, supposedly, include design changes that intend to streamline the code and improve performance. It should be noted; however, that despite the January 16th, date being agreed upon via a non-binding verbal pact, it is not set in stone. In fact, according to developers, there could be another delay if other possible problems arise.
As Ethereum’s Core Developer Péter Szilágyi reminded, it does not matter if the platform agrees to set a date, because “we can just say mid-January; we can always postpone.” And it has already happened once.

The “Difficulty Bomb”

Ethereum, through Developer Lane Retting, recently shared the results of conducted research about the “difficulty bomb,” which is an algorithm embedded within the platform’s code that makes blocks significantly harder to mine. People say that the difficulty bomb was “activated” on purpose with the intention of promoting regular updates.
About the matter, Rettig stated that the “difficulty bomb” will be perceptible starting from January, and the development will result in 30-second block times in three or four months. However, Constantinople postpones the difficulty bomb for a year and a half and will also lower the compensation for Ethereum mining from 3 ETH to 2 ETH per block. There will also be several code optimizations scheduled in the upcoming upgrade.
There is also the matter of the ProgPoW update, a development that could potentially change the Ethereum network to brick ASIC miners out, although that was not discussed in the latest announcement. That part (or question,) to this day, remains unanswered by Ethereum, but the likelihood is that developers will not use it because it would imply a major protocol change.

Ethereum Recent Behavior

The current year, 2018, has not been a kind year for Ethereum, at least when it comes to its price behavior. After reaching $1,389.18 on January 14th (in the middle of an all-time surge for most cryptocurrencies,) ETH has been plummeting as have other digital assets in the top 20, including Bitcoin.
Right now, at the moment of this writing, Ethereum is changing hands at $211.67, which would represent a drop of 0.42 percent when compared to the price in the last 24 hours. On the week, though, it has gained around $10, taking into account that it was trading at nearly $200 on November 3rd.
ETH total market cap checks in at $21,824,674,591 with a circulating supply of 103.108.344 ETH. The trading volume in the last 24 hours was $1,538,825,569.

By Andres Chavez

Nine Prominent Shipping Companies Establish a Blockchain-based Business Network

Andres Chavez
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0
Nine Prominent Shipping Companies Establish a Blockchain-based Business Network

The blockchain technology, the implementation of smart contracts and the public ledger are surely expanding to more and more applications and everyday life situations. The latest development within the industry involves the transportation and shipping fields as the latest to experiment with the approach in search of smoother and more trustworthy operations.

The Maritime Executive, a very reliable source of maritime news and developments around the world, reported this week that a total of nine prominent terminal operators and shipping businesses have agreed to sign a Memorandum of Understanding, known as MoU, with the intention of launching an open digital platform based on DLT, which is Distributed Ledger Technology.

The Global Shipping Business Network is Born in Shanghai

The MoU signees want to establish a consortium to form a shipping industry blockchain alliance, named the Global Shipping Business Network (GSBN.) The document was signed at the China International Import Expo that took place in Shanghai on November 6th.

Of course, unifying criteria of nine of the most prominent companies in the shipping and terminal management industries look like no small feat, so according to the publication, a software solution to run the global shipping business network will be assumed by a Hong   Kong-based firm with experience, skills, and resources to fulfill the task, and its name is CargoSmart.

An Industry in Dire Need of Blockchain Solutions

The portal Opensea.pro accurately points out that, despite the technological advances experienced in the last ten or even five years in the planet as a whole, cargo and shipping remain a traditional industry, and the majority of transactions can take a lot of time and pass through more hands that it seems necessary.

For example, the industry manages sales contracts, charter party agreements, bills of lading, port documents, letters of credit and others related with the vessel and the cargo. Sometimes, paperwork takes so long to complete that vessels often arrive at the discharge port before the bills of lading.

It was CargoSmart the firm that started the launch of the blockchain shipping alliance. The first app developed by the recently formed pact is on track to be launched in December 2018. The application, according to the document, “will allow shippers to digitize and organize their dangerous goods documents and automatically connect with relevant parties to streamline the approval process.”

Firms that Form the Strategic Alliance

Some of the companies involved in the alliance are Singaporean firm PSA International, Shanghai International Port Group, which is the most prominent operator of ports in China, French shipping group CMA CGM S.A, and the Yang Ming Marine Transport Corporation, that is a Taiwanese business.

The Global Shipping Business Network is not the first agreement of its kind in the shipping industry, as Danish logistics and transportation giants Maersk established an alliance with tech company IBM to establish a network based on and supported by blockchain technology that is formed by almost 94 firms around the world. That agreement took place in early August.

By Andres Chavez

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