vinistic – Page 3 – The Blockchain Report

IBM, Maersk announce blockchain joint venture

The quick read: Two industry giants, IBM (information technology) and A.P. Moeller-Maersk (shipping) are joining forces to create a global supply chain management platform based on blockchain technology. Their new joint venture, Hyperledger Fabric 1.0, aims to standardize shipping logistics in an efficient manner. Maersk controlls 51 percent of the joint venture. IBM controls 49 percent of the new company, which will be based in New York. (LinuxInsider)

What to look for:

This new blockchain company will have two primary services offered to customers. First, its blockchain will create a digital information pipeline allowing for end-to-end visibility of a supply chain in real time. The second service, and arguably the most attractive aspect of this blockchain joint venture, is Paperless Trade. As the service implies, it’ll automate paperwork filings required in shipping products using blockchain-based smart contracts. This should allow for quicker approval of documents, and also create more legally binding agreements. In short, blockchain offers the potential to make the shipping industry more profitable and efficient. (The Motley Fool)

Smart take: Two of blockchain’s key features, distributed ledgers and immutable trust, are critical components in shipping, logistics and supply chain management. These sectors are natural fits with blockchain technology, and it’s no accident that there are currently several ventures in various stages of gestation trying to enter this same space.

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Sweatcoin rewards exercise with cryptocurrency

The quick read: Sweatcoin, which rewards exercise with its own private cryptocurrency, has rocketed up the app charts in recent weeks. It sits at number two in the App Store among free apps and claims to have 2 million weekly active users and 5 million users in the past year. (TechCrunch) It is available for both iOS and Android.

How it works: The app counts your steps and gives you “Sweatcoins” based on the number of steps you’ve walked (1,000 steps=0.95 sweatcoins). You can buy fitness gear, classes and other fitness related items using the coins.

Smart take: The key to creating a successful private coin is utility. Is there a market/environment in which the coin is desirable and can be acquired and used easily? The answer to that question in this case is yes. Acquisition is simple. The phone measures your steps. The more steps you take, the more coin you make. And because this is a fitness tracker, the presumption is you’ll spend this coin on items related to fitness and healthy eating. This is the perfect match between incentive and market.

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Bad day for bitcoin and other cryptocurrencies

The quick read: It was a bad day at the office for cryptocurrencies Tuesday. Bitcoin fell more than 19 percent and traded for below $11,000 for the first time since December while Cboe bitcoin futures fell 20 percent, temporarily halting trading. (CNBC) Ethereum prices dropped by more than 20 percent as well while Ripple prices plunged by a third. (Reuters)

The key facts: Turmoil in South Korea and China are roiling the crypto markets. Concerns about a potential government crackdown on cryptocurrency trading in South Korea are ongoing. China added to the worries this week by signaling new actions against exchange-like services trading cryptocurrencies. (China made cryptocurrency exchanges illegal last year.)

China is escalating its clampdown on cryptocurrency trading, targeting online platforms and mobile apps that offer exchange-like services, according to people familiar with the matter… The government plans to block domestic access to homegrown and offshore platforms that enable centralized trading, the people said, without being more specific about how policy makers define such platforms. (Bloomberg)

The bottom line: Bitcoin and other cryptocurrencies are not immune to market forces — including government actions. With more countries moving to scrutinize crypto markets, future disruptions are likely.

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MoneyGram to test Ripple’s XRP cryptocurrency

The quick read

The technical and financial infrastructure that supports cross-border payments is an absolute mess. That’s why banks and payment companies are looking for better, more efficient ways to process these transactions. Blockchain technology holds promise in this space, which is why MoneyGram has agreed to test out Ripple’s XRP cryptocurrency. (American Banker)

MoneyGram, the world’s second-largest cross-border payments company, is a big get for Ripple. Ripple has faced significant public scrutiny over the value of its XRP currency and the centralized nature of its coins. (TechCrunch)

The key details

International bank payments are slow and the associated fees often remain unknown until after a transaction has reached its final destination. MoneyGram, a major player in the $600-billion-a-year remittance market, is similarly afflicted. Enter Ripple. The San Francisco startup is offering on-demand liquidity and rapid foreign exchange through XRP, theoretically allowing financial institutions to send payments around the world without the need for multiple corresponding accounts. Fees would be lower and the payment flows more transparent. (American Banker)

The bottom line

This is a big get for Ripple after a wave of bad publicity and an ever bigger test for blockchain technology. The current cross-border payments system is extremely inefficient. If blockchain technology can solve this problem, it’s a huge win for the platform.

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South Korea eyeing cryptocurrency trading ban

The quick read

The trading of cryptocurrencies is booming in South Korea. And government officials are not happy about it. Authorities raided local exchanges Wednesday and are pressing forward with tax evasion charges. The government also announced that legislation to ban the trading of cryptocurrencies is in the works. The raids and planned legislation initially sent local coin prices tumbling 21 percent and global bitcoin prices down about 10 percent. (Reuters)

The key facts

South Korea is a major player in cryptocurrency trading.

(Bitcoin) still trades at around a 30 percent premium compared to other countries. (Reuters)

And it’s not just bitcoin. The South Korean market trades heavily throughout the cryptocurrency space. Any disruption in South Korea is a disruption in the global market.

The bottom line

The South Korean legislation is still being written and needs a majority vote in the National Assembly to pass. That’s still months away. But regulators and politicians are concerned. And that’s not a good thing.

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Overstock, Coinbase close bitcoin cash flaw

Quick read

For about three weeks, a bitcoin payment glitch left online retailer Overstock and bitcoin wallet Coinbase vulnerable to potential fraud. Customers were being charged in bitcoin, but allowed to pay the numerical equivalent in bitcoin cash. (KrebsOnSecurity)

Mini-explainer

So if an item cost 10 BTC, customers were allowed to pay 10 BCH instead. Additionally, if customers canceled the order, refunds were made in BTC even if the payment was made in BCH. Given the value disparity between BTC and BCH (bitcoin is about 7 times more valuable than bitcoin cash), this was a serious problem.

The key facts

Consider the implications here: A dishonest customer could have used this bug to make ridiculous sums of bitcoin in a very short period of time. Let’s say I purchased one of the more expensive items for sale on Overstock, such as this $100,000, 3-carat platinum diamond ring. I then pay for it in Bitcoin cash, using an amount equivalent to approximately 1 bitcoin ($~15,000).

Then I simply cancel my order, and Overstock/Coinbase sends me almost $100,000 in bitcoin, netting me a tidy $85,000 profit. Rinse, wash, repeat. (KrebsOnSecurity)

The bottom line

Coinbase implemented the bitcoin payment solution, so it stood to lose the most from the glitch. As the cryptocurrency space becomes more crowded, the potential for these types of mistakes will increase. Payment processors need to be extra careful moving forward to avoid situations like this.

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Major bitcoin conference stops accepting bitcoin payments for tickets

Quick read

So this is a bad look. The North American Bitcoin Conference isn’t accepting bitcoin payments for tickets anymore. The conference takes place in Miami next week. The basic problem is processing bitcoin payments in time to issue tickets is such a pain in the neck that bitcoin can’t really be used for last-minute transactions. (CNBC)

Key facts

The conference organizer, Moe Levin, earlier told Bitcoin.com that his company was working to get bitcoin cash or other digital assets with cheaper fees integrated into the ticketing system. He told the news site: “We wish this was easier, but no ticketing options exist which can handle large volumes of ticket sales, and transaction fees on the Bitcoin blockchain exceed $30 at certain times of the day.” (CNBC)

Bottom line

Bitcoin’s high transaction fees combined with very slow payment-processing times makes it difficult for merchants to rely on it — especially when they’re facing a time or resource crunch. It’s one of the weaknesses of bitcoin. If cryptocurrencies are going to thrive in the future, these problems need to be solved.

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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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