January 2018 – Page 3 – The Blockchain Report

Comcast ‘doubling down’ on blockchain in 2018

Quick read

Comcast Ventures, the venture capital arm of Comcast, is bullish on blockchain. The company invested in blockchain accelerator Mstate earlier this month. And the managing director for Comcast Ventures, Gil Beyda, isn’t shy about letting the world know about his aspirations to strike it big with blockchain technology. “In 2018 we’re doubling down on blockchain,” says Beyda. (TechCrunch)

Key facts

Coin offerings are sexy. But media companies have specific needs that have nothing to do with coins.

Specifically for Comcast, blockchain technologies around royalty tracking, identity and digital rights management all sound appealing. (TechCrunch)

Smart take

Comcast Ventures won’t shy away from companies that want to go the ICO route. Those companies generate buzz and raise money. But don’t be surprised when Comcast Ventures invests in some decidedly unsexy ideas that focus more on utility. That’s where the long-term success will be.

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Dimon ‘regrets’ bitcoin remarks

The quick read

JPMorgan Chase CEO Jamie Dimon told Fox Business News Tuesday that he shouldn’t have called bitcoin a “fraud” last September. (American Banker) Dimon went on to acknowledge blockchain technology could be useful.

The key details

Dimon still isn’t a big believer in bitcoin however.

The 61-year-old CEO said Tuesday he’s still not very interested in the subject, and thinks that government intervention may eventually hamper bitcoin’s growth and acceptance. (American Banker)

Bottom line

Dimon still isn’t a big fan of bitcoin. But he can’t dismiss blockchain technology, especially with his own company interested in it. So he softened his statement a bit.

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Kodak set to launch new blockchain platform (and cryptocurrency)

Kodak announced plans Tuesday to launch a new digital rights management platform for images based on blockchain technology and a new cryptocurrency to buy and sell images on that platform. Kodak is calling the rights management system KODAKOne and the cryptocurrency KODAKCoin. Kodak will hold an ICO for KODAKCoin on January 31 that “is open to accredited investors from the U.S., UK, Canada and other select countries,” the company said in a press release. (Kodak) Kodak stock prices surged 30 percent after the announcement. (CNBC)

Key details

Utilizing blockchain technology, the KODAKOne platform will create an encrypted, digital ledger of rights ownership for photographers to register both new and archive work that they can then license within the platform. With KODAKCoin, participating photographers are invited to take part in a new economy for photography, receive payment for licensing their work immediately upon sale, and for both professional and amateur photographers, sell their work confidently on a secure blockchain platform. KODAKOne platform provides continual web crawling in order to monitor and protect the IP of the images registered in the KODAKOne system. Where unlicensed usage of images is detected, the KODAKOne platform can efficiently manage the post-licensing process in order to reward photographers. (Kodak)

Smart take

Shares of Kodak stock rose quickly because anything remotely associated with bitcoin, like the new KODAKcoin, is hot with investors. But the real value here is the KODAKOne platform. Blockchain technology is well-suited for digital rights management. And photographers have been looking for a digital rights solution for almost two decades.

It’s no accident Kodak CEO Jeff Clarke focused on photographers in the company’s press release:

“For many in the tech industry, ‘blockchain’ and ‘cryptocurrency’ are hot buzzwords, but for photographers who’ve long struggled to assert control over their work and how it’s used, these buzzwords are the keys to solving what felt like an unsolvable problem. Kodak has always sought to democratize photography and make licensing fair to artists. These technologies give the photography community an innovative and easy way to do just that.”

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Blockchain accelerator gets major boost

The quick read

IBM and Comcast Ventures have agreed to back blockhain accelerator Mstate with services (IBM) and funding (Comcast Ventures). Comcast Ventures is Comcast’s venture capital arm. (Bloomberg) Galvanize’s venture fund and venture capital fund Boldstart Ventures are also backing Mstate. (Business Insider)

Key detail

The startup accelerator … plans to invest $25,000 to $50,000 apiece in five or six companies over the next six months. (Bloomberg)

Bottom line

Mstate is a chance for IBM and Comcast to identify blockchain technologies and companies much earlier in their development process than either company can right now.

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SEC freezes trading of UBI Blockchain Internet shares

The quick read

The U.S. Securities and Exchange Commission (SEC) halted trading of UBI Blockchain Internet (OTCMKTS:UBIA) shares Monday (The Hill). Nobody is quite sure what the Hong Kong-based company with shady origins does in blockchain (Bloomberg), but it’s stock price surged (along with everything else bitcoin) almost 1,000 percent last year, giving it a valuation of a little more than $1 billion in December of 2017 (Fortune).

The key facts

The SEC said it froze trading of UBI shares because of potentially inaccurate information the company filed in its disclosures to the agency and “recent, unusual and unexplained market activity” around UBI stock since November. (The Hill)

Also of note

United States regulators have boosted their oversight and regulation of cryptocurrencies and blockchain technology companies as the mainstream finance world has begun to jump into those industries. (The Hill)

Bottom line

Regulatory filings matter. So do business fundamentals. You need to do more than slap blockchain or bitcoin on the name of your company to make it big.

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Telegram turns to blockchain and crypto to challenge WeChat

The quick read

The popular messaging system Telegram (100 million active users according to the company in 2016) is building its own blockchain platform and cryptocurrency. (TechCrunch)

The key facts

The “Telegram Open Network” (TON) will be a new, ‘third generation’ blockchain with superior capabilities, after Bitcoin and, later, Ethereum paved the way. The launch will be funded with an enormous Initial Coin Offering, with forthcoming private pre-sales ranging into the hundreds of millions, potentially making it one of the largest ICOs to date. (TechCrunch)

The bottom line

Telegram is positioning itself to be the global version of Chinese juggernaut WeChat. WeChat is much more than a messaging platform. It is the hub of mobile payments, commerce, social networking and communication in China. Tencent, which owns WeChat, is valued at more than $500 billion. Telegram is betting its new blockchain platform and cryptocurrency will propel it to similar heights.

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Visa pulls the plug on WaveCrest prepaid crypto cards

The quick read

Using cryptocurrencies like bitcoin for “real-life” purchases isn’t the easiest thing to do. And late last week, it became a little more difficult when Visa Europe ended its relationship with WaveCrest, which issued Visa debit cards for Bitwala, Cryptopay, Wirex and TenX. The debit cards were funded by cryptocurrencies that had been converted into fiat currency. (CNBC)

The key detail

In a statement, Visa Europe made it clear that its problem was with WaveCrest, not cryptocurrencies in general.

We can confirm that WaveCrest’s Visa membership is being terminated due to continued non-compliance with our operating rules. All of WaveCrest’s Visa card programmes will be closed as a result.

Visa has other approved card programmes that use fiat funds converted from cryptocurrency in a number of jurisdictions. The termination of WaveCrest’s Visa membership does not affect these other products.

Visa is committed to the security of its ecosystem and compliance with Visa’s operating rules is critical for ensuring the safety and integrity of the Visa payment system. Our issuers’ card programmes must comply with our membership regulations, as well as all applicable laws. (TNW)

The bottom line

Anonymity and lack of regulation were part of the initial appeal of cryptocurrencies. That doesn’t work in the financial services industry where compliance is king. You either keep up or get shut down.

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Welcome to The Blockchain Report

The Blockchain Report (TBCR) chronicles interesting developments in blockchain technology and cryptocurrencies. That means you’ll see plenty of news and commentary on fintech and real-world blockchain use cases. TBCR will also examine the intersection between blockchain technology and legal and regulatory issues. There will also be the usual bitcoin/crypto news. Comments are on for now — so if you have any story ideas, leave them there.

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