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  • user 3:35 am on December 22, 2016 Permalink | Reply
    Tags: , , , Common, Diamonds, , industry, , , ,   

    Diamonds, UNICEF and The Music Industry, What Do They Have In Common? 

    Luis Carranza, founder of Worldwide and organiser of London Blockchain Week discusses and Distributed Ledger (DLT) in 2017

    There’s been a lot of talk about blockchain over the past year. Sometimes I think back to when I opened the first Blockchain Conference back in 2015, and the look of bewilderment on people’s faces as tried to get their heads around my chosen focus. ‘Don’t you mean ?’ they used to say.

    But the distributed ledger technology that was initially overlooked as the underlying tech that facilitated bitcoin transactions soon rose to prominence and is now being discussed at a global level by key players and not just in the financial sector. Investors, developers and entrepreneurs have recognised the versatility of Blockchain and its potential for greater transactional speed, security and simplicity.

    PSD2 and Blockchain

    As the relationship between countries fragments, blockchain will take a leading role in financial services, notably cross border payments and trade finance, and leading concepts that have been in the making will see the necessary investment that lifts them off the page and into fruition. The planned revisions to PSD2 in 2018 will undoubtedly lead to stronger relationships between and fintech start-ups over the coming year.

    Closer to home, the UK government will take centre stage as the driving force behind blockchain development. This year saw Credits awarded the first G-cloud blockchain platform-as-a-service agreement by the government &; a major step forward in public sector acceptance of the technology.

    London-Fintech-Week-2016-DAY3-0513 (2)

    Luis Carranza, founder of Fintech Worldwide and organiser of London Blockchain Week discusses Blockchain and Distributed Ledger Technology (DLT) in 2017

    There’s no doubt more UK government funding will be pumped into blockchain, in a report on the subject, the Government Chief Scientific Adviser, Sir Mark Walport, wrote: &;distributed ledger technology has the potential to redefine the relationship between government and citizens in terms of data-sharing, transparency and trust,&; which accurately sums up the benefits for wider society, from healthcare to pensions.

    Something that’s impossible to miss is the wide variety of sectors that blockchain is applicable to. Supply chain transparency and simplicity of asset transfer make it a popular point of focus for industries that rely on provenance, such as the diamond trade. To have an immutable ledger that traces the authenticity of precious materials all the way back to their inception is of obvious benefit and investors will no doubt be pouring money into platforms that confirm attribution and improve logistics.

    Cut out the middle men, Brexit and Trump&8230;

    Systems that cut out the middle men, streamline processes, cut costs and prevent fraud are of natural interest to sectors that count the pennies. With charities, large scale aid and infrastructure projects always see a percentage fall through the cracks. The digitisation of aid will continue as organisations like work on projects (e.g. Donercoin) to increase transparency in global aid.

    Additionally, the creative industries, historically underfunded and plagued by complex revenue streams, will look to the support of big names to promote blockchain as a means for ensuring artists are paid fairly and digital content is accurately measured and attributed to the right parties, taking blockchain into the mainstream.

    2017 is set to be a year of many uncertainties: Article 50 & Brexit, global markets, Trump… but the one thing that you can be sure about is that fintech will play a big part in helping to overcome some of the bigger obstacles that we face, and London will lead the way, as it always has, with innovation and expertise in developing new technology.

    london blockchain week

    Blockchain Week kicks off with the Hack-The-Block Blockchain Hackathon at Launch 22. Followed by a two day conference at The Grange Tower Bridge Hotel. The first day will focus on Crypto/Bitcoin/Public Blockchain, while the second day will focus on Blockchain/DLT in hybrid and public ledgers. Get 20% Discount With Code: &8220;FTSW&8220;. Register NOW!

    The post Diamonds, UNICEF and The Music Industry, What Do They Have In Common? appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
  • user 3:35 pm on November 18, 2016 Permalink | Reply
    Tags: , , , , industry, , ,   

    87% of Financial Market Participants Say Blockchain Will Disrupt The Industry 

    A survey conducted by Deutsche Bank and FT Remark, the research arm of the Times, found that a staggering majority (87%) of financial are confident that will the settlement model for securities.

    62% believe that the introduction of distributed ledger technology will produce substantial savings ranging from 11% to 25%. Almost half say that it will help the cope with the risk of system failure and market disruption.

    Benefits of blockchain tech in capital markets Deutsche Bank report

    &;Blockchain may completely change the settlement model for securities processing, creating a utility around securities processing and cash management,&; commented David Rhydderch, Deutsche Bank&;s head of alternative fund services.

    &8220;The entire back end would become a far more efficient, far less costly, more accurate and less risk-prone function. This has an obvious knock-on effect on the cost of service provision. In the administration space, blockchain may not be quite the disruptor. It’s more in the functional utility elements within the securities processing settlement chain. In that context, it may be totally revolutionary.&8221;

    Respondents believe that blockchain technology will be widely used within the next three to six years (75%).

    Blockchain adoption Deutsche Bank capital markets report

    The industry is still struggling to figure out how to implement the technology in the current web of legacy infrastructure, the report says, noting that market participants are trying to determine how it can be deployed in a way that works, given ongoing data protection and security concerns.

    The document a previous report released earlier this year by Euroclear and Oliver Wyman which praised the merits of blockchain technology in capital markets and highlighted the potential of the technology to provide a new approach to data management and be a solution to many of the efficiencies afflicting capital markets.

    Deutsche Bank report capital marketsThe Deutsche Bank report, titled &8220;Powering the flow of global capital: Capital markets investor insights,&8221; highlights the key findings of a survey of 200 market participants to examine what is driving today&8217;s capital market.

    The research found that regulation, new technologies and emerging markets are key issues impacting strategic thinking. These three areas have caused the vast majority of respondents to partially or completely reshape their operating models, buying behavior and capital/fund allocations over the past two years.

    &8220;These three themes are fundamentally redefining the securities services landscape and the knock-on effects will impact the business models of many capital markets participants,&8221; according to Satvinder Singh, head of global securities services and head of GTB EMEA ex Germany.

    Notably, a majority of market participants are convinced of a revival of emerging markets. 54% believe emerging markets will deliver growth rates close to those seen during the 2001-2011 boom, noting that India and South Asia will likely be the most attractive region (88%).

    Emerging markets Capital Markets Deutsche Bank survey

    China, Indonesia, Russia and Turkey in particular are ranked highest for their capital market infrastructure. Respondents said that China and India have made the greatest infrastructure improvements during the last five years.

    That being said, investing in emerging markets remains risky and some investors are hesitant.

    Respondents ranked regulatory hurdles as their greatest or second greatest challenge (62%) when carrying out securities transactions in emerging markets, followed by political interference (53%) and instability as a challenge, and unreliable capital markets infrastructure (40%).

     

    Featured image: Stock market chart by bluebay via Shutterstock.com.

    The post 87% of Financial Market Participants Say Blockchain Will Disrupt The Industry appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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  • user 6:22 pm on November 8, 2016 Permalink | Reply
    Tags: , , , , , , industry, , , , ,   

    Upcoming Swiss Hackathon Seeks To Use Blockchain To Disrupt The Insurance Industry 

    An organized by EPAM in collaboration with Finance + Association  and Validity Labs is looking for innovative solutions to the .

    Upcoming Hackathon Seeks To Use Blockchain To Disrupt The Insurance Industry

    Image credit: Golden Bitcoins by Julia Tsokur via Shutterstock.com

    The EPAM 2016 Blockchain Hackathon, taking place on November 18 and 19, 2016 in Zurich, is seeking dynamic teams to take on the challenges set by the three largest insurance companies in Switzerland, namely SwissLife, Zurich and SwissRe.

    &;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;

    Apply for Blockhain Insurance Zurich Hackathon

    You still can apply for it or join as a visitor, hurry up!

    &8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;&8212;

    The teams will be judged by representatives from these three companies on the following criteria: originality and innovation, usefulness and practicality, business potential and commercialization to go to market, design and interface, and technical implementation.

    Industry experts will assist the teams during the hackathon to provide insights and answer questions about specific industry characteristics.

    Insurance and Blockchain?

    Like , insurers have been exploring the merits of blockchain technology to disrupt their industry and streamline payments of premium and claims.

    According to a Deloitte paper, blockchain technology could support the significant digital transformation underway in the industry because much of this transformation relies on data.

    &;Smart contracts powered by a blockchain could provide customers and insurers with the means to manage claims in a transparent, responsive and irrefutable manner,&; the report states.

    &8220;Contracts and claims could be recorded onto a blockchain and validated by the network, ensuring online valid claims are paid. [&;] Smart contracts would also enforce the claims &; for instance, triggering payments automatically when certain conditions are met (and validated).&8221;

    Blockchain technology could allow the industry as a whole to streamline its processing and offer a better user experience for customers. Storing claims and customer information on a blockchain would also cut down fraudulent activity.

    Early blockchain developments have tended to focus on optimizing current ways of working within organizations. For instance, London-based startup Everledger uses the blockchain to create a permanent ledger for diamond certification and related transaction history. The ledger lets insurers and potential buyers check the history of any individual stone, helping insurers prevent, detect and counter fraud.

    Blockchain Industry Challenges

    Despite the enormous potential, the biggest challenges to industry-wide implementation are facilitating collaboration between market participants and technology leaders, succeeding in the operational transformation, and shaping a stimulating regulatory environment, according to McKinsey and Company.

    EPAM Systems is a leading global product development and platform engineering services company and one of Forbes&; 25 Fastest Growing Public Tech Companies.

    Validity Labs, a startup created by several blockchain technology experts in Zurich, aims at bridging the shortage of educated blockchain engineers, entrepreneurs and executives. The company organizes various educational events and workshops in Switzerland.

    Swiss FinteCH is an independent association aimed at promoting and supporting Switzerland&8217;s industry. It connects stakeholders, creates research papers, advocates for solutions and promotes Switzerland as a global fintech hub.

    The post Upcoming Swiss Hackathon Seeks To Use Blockchain To Disrupt The Insurance Industry appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
  • user 3:40 pm on September 6, 2016 Permalink | Reply
    Tags: Azure's, , , , industry, ,   

    Microsoft Azure’s CTO Wants Blockchain to Connect Every Industry 

    CTO Mark Russinovich envisions a world where is connected by a consortium.
    CoinDesk

     
  • user 3:39 pm on July 27, 2016 Permalink | Reply
    Tags: , , , industry, , , Revamp   

    P2P Lending Platforms Revamp The Consumer Lending Industry 

    Peer-to-peer (P2P) , one of the hottest industries, has experienced tremendous growth in the past five years and is expected to be worth US$ 150 billion by 2025, according to PwC.

    After the financial crisis in 2008, P2P lending emerged as a new method for consumers to get loans easily and quickly, bypassing traditional that had tightening their lending policies.

    The model quickly grew in popularity, attracting borrowers with the new platforms&; perceived low interest rates, simplified application process, and quick leading decisions.

    In 2014, an estimated US$ 5.5 billion worth of loans have been issued in the US alone with an average growth of 84% per quarter since 2007.

    Growth has been largely influenced by technological breakthroughs and demographical shifts. Most particularly, the Millennial generation &; those born between the early 1980s and the early 2000s &8211; has set new standards in the financial services .

    P2P lending and Millennials

    Image credit: Rawpixel.com via Shutterstock

    Image credit: Rawpixel.com via Shutterstock

    This demographic is demanding greater convenience, mobility, real-time update, and are using entirely different channels.

    Tech-savvy and socially-minded, Millennials are changing the face of finance and have embraced fintech solutions. A recent report by Oracle and Wharton Fintech suggests a notable increase in the use of non-bank options by this demographic in solutions such as mobile wallets, mobile money and overall alternative payment solutions.

    In the P2P lending area, Millennials are ten times more likely to use P2P lenders than those 50 and older, according to the Fair Isaac Corporation. The demographic is becoming a larger portion of the consumer loan market as they seek credit to finance major purchases or refinance their student debt.

    &;The Millennials are prime targets for P2P lending as they value the convenience of transacting online and are less loyal to banks,&; according to PwC.

    P2P lenders vs. banks

    While the industry is experiencing strong growth, lending from large banks, on the other hand, has decreased dramatically. In the US, the ten largest banks lent US$ 44.7 billion in 2014, a drop of 38% from its peak of US$ 72.5 billion in 2006, according to Techcrunch.

    That said, banks shouldn&8217;t be afraid of these new players as P2P lenders &8220;are unlikely to pose a threat to banks in the mass market,&8221; according to Neil Tomlinson, Deloitte&8217;s head of UK banking.

    P2P lenders and banks collaborations

    Image credit: Stokkete via Shutterstock

    In a report released earlier this year, the consulting firm argued that these new platforms &8220;will not be significant players in terms of overall volume or share.&8221; It said that P2P lenders cannot compete with banks in mainstream markets and should in fact focus on profitable niche segment markets where their knowledge can be a competitive advantage.

    The report encourages banks to start collaborating with P2P lenders to deliver superior UX capability, maintain customer relationship, gain access to data to improve the bank&8217;s risk scoring, as well as provide an option to under-served segments.

    For these platforms, collaborating with banks would allow them to increase awareness among borrowers and investors, gain scale and lower their customer acquisition costs.

    A number of banks have already teamed up with P2P lending startups: JP Morgan Chase provides loans to its SME customers using OnDesk&8217;s platform; Metro Bank deploys customer deposits through Zopa; and RBS and Santander UK are both regering SME customers rejected for a loan to Funding Circle.

     

    Featured image by Anton Gvozdikov, via Shutterstock.com.

    The post P2P Lending Platforms Revamp The Consumer Lending Industry appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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  • user 4:26 pm on July 6, 2016 Permalink | Reply
    Tags: , , , , industry, , , ,   

    McKinsey Report Weighs Blockchain Impact on Insurance Industry 

    &; Company reports on how companies might be able to capitalize on .
    fintech techcrunch

     
  • user 8:07 pm on July 5, 2016 Permalink | Reply
    Tags: , , , , industry, , , Weave   

    At W3C Event, Industry Seeks to Weave Blockchains into New Web 

    A recent W3C saw the wider community coming together to discuss standards in an increasingly fragmented market.
    fintech techcrunch

     
  • user 6:59 am on June 29, 2016 Permalink | Reply
    Tags: , , industry,   

    What Does the Brexit Mean for the UK Fintech Industry?  

    Startups should be ready to pivot if the current climate demands it and build even closer ties with clients.
    FinTech – Finance Magnates | Financial and business news

     
  • user 3:35 am on June 11, 2016 Permalink | Reply
    Tags: , , , Gambling, industry, , ,   

    Gambling industry – How Blockchain Can Make It More Transparent 

    Following ’s significant rise in popularity among the online community, eyes are now turning to its underlying , , which is expected to have a hugely disruptive impact on the .

    With the bulk of gambling globally having moved from the downtown ‘brick-and- mortar’ casino and onto the internet, and given the growth of blockchain-related applications over the last year or so including smart contracts and peer-to-peer Bitcoin exchanges, the widespread application of blockchain appears to be the next logical evolutionary step for the $ 41 billion gambling industry. The cost-saving implications of applying such technology on an industry-wide basis are also thought to be substantial.

     

    Blockchain makes online gambling fairer by it own decentralized system

    The US has already seen a healthy rise in Bitcoin casino and Bitcoin sports betting sites on the web, and now such gamblers are looking to improve issues of trust and transparency using blockchain’s technology. Indeed, trust has always been one of the biggest concerns for online gamblers, but now start-ups are emerging which entirely removes this concept as a source of uncertainty.

    On blockchain’s decentralized system, which is built by a coordinated network of independent nodes, no particular individual or entity can have a centralized advantage at any stage of the gambling process. Gambling companies can use blockchain to assure users that they are completely incapable of knowing the result of an outcome &; such as the dealing of a particular card – in advance. By removing the entire concept of centralization, and by putting the verification of bets in the hands of the network of nodes, the requirement for a third-party point of trust automatically becomes redundant.

     

    Blockchain offers greater financial transparency on gambling

    With each transaction or bet being visible for verification on the blockchain, the technology provides greater financial transparency for the gambling industry. Indeed, it seems that Bitcoin gamblers have a strong preference for fully systems that exist on blockchain, whereby every transaction is conducted on a person-to-person (P2P) basis and the operator is completely prevented from accessing money. As such, new “Bitcoin 2.0” solutions have arisen including BetXCP.com and Xbet.io, which are suited to gambling activities such as sports betting, but are somewhat less applicable to real-time casino games at present.

     

    Gambling-platform Augur leads in applying Blockchain

    At this stage, California-based Augur is among the start-ups leading the transformation of gambling platforms onto blockchain-based technology. Augur is described as a ‘prediction market’, one which provides a platform for people to bet on any future event that they desire; for example, the US presidential elections at the end of 2016. Augur is expected to launch on the Ethereum network imminently, having raised over $ 5m in crowdfunding in October and then releasing the beta version of its application in mid-March. Operating as a decentralized peer-to-peer marketplace, Augur will not be controlled by any one person or institution.

    This will ostensibly allow everyone involved to be connected to a global forecasting network. It will also remove the need for a middleman, thus removing counterparty risk and implying that Augur will take a considerably lower cut than bookmakers from users’ betting activity. No individual will have access to fund transfers, while the custodial holding of money at every point will be secured using code on the blockchain. With all money in Augur’s system being in cryptocurrencies, moreover, no banking institutions or credit card companies will be involved.

    Indeed, digital currency tokens lie at the heart of Augur’s model. Bitcoins can be transferred to the specific addresses of those users on the network who have placed a wager. In order to confirm that an actual event has occurred, the decentralized reporting system is subject to a thorough reputational assessment. Rather than using a centralized body, referees are randomly assigned to each prediction market on the blockchain network, and are required to report the outcome of each event in a reliable and transparent manner.

    ‘Reputation’ tokens are used to incentivize referees for this purpose, while a sophisticated ‘lie-detector’ is also implemented using a complex algorithm. Should the decisions made by a particular referee consistently stick out from the consensus, the lie-detector will redistribute their token value towards trustworthy referees, and thus their rating will decline. According to Augur’s director Jeremy Gardner, this method “ensures the integrity of the system&;.

     

    Playshares is also applying ensure fairness in gambling

    Blockchain-based Chinese casino Play also emerged last year, and much like Augur, is developing a prediction market betting system. It is also placing the underlying logic of the games it offers onto the decentralized system, in order to ensure fairness for its gamers. Additionally, it has introduced tokens for the system that also function as chips that used in play by Play’s gamers, called Playshares (PLS). The tokens are designed to be both shares of the system and the units in which dividends are paid to network users and delegates of PLAY for their contributions to the system. Given that PLS tokens are used for system ownership purposes by individual players, as well as play games using PLS, ultimately if the house wins then such players also subsequently win.

    The Isle of Man attracts blockchain entities to its shores

    The Isle of Man appears to be among the biggest proponent countries of the adoption of blockchain in the gambling industry. Dubbed the ‘Bitcoin Isle’, the Isle of Man hopes to introduce new regulation and funding schemes to attract blockchain entities to its shores. Brian Donegan, head of digital business at the island’s Department of Economic Development, sees the e-gaming industry on the island especially benefiting from such a move, with due diligence, compliance checks, testing and certification all potentially being transferred to the decentralized ledger. Furthermore, Nick Williamson, CEO of start-up Credits, which helps the Isle of Man government to run its blockchain registry, has also expressed optimism that the Isle can capably adopt this technology in the future.

     

    Blockchain agreedly benefits the gambling industry

    Malta and Alderney are also heavily advocating the use of blockchain to boost the credibility of their respective gambling industries. EY Malta senior manager Chris Meilak recently stated that the Malta Gaming Authority is in discussion with other Malta regulators, although no firm position has been taken as of yet. Meanwhile, André Wilsenach, executive director of the Alderney Gambling Control Commission has asserted that “shared, digitalized, decentralized” information in a blockchain-based ledger system would provide regulators with significantly easier access to important data.

    According to Calvin Ayre, the founder of Bodog – an online gambling operator – the application of blockchain to online gambling will fundamentally change the way the gambling industry is perceived. Once combined with virtual reality gaming products, Ayre believes that the gambling industry will “will finally get away” from having hundreds of the same games distributed over the internet. Meanwhile, the founder of SportingBet and celebrated investor in the online gambling industry, Mark Blandford, who recently entered the blockchain world by investing in Coinsilium, a blockchain technology incubator, advised that people should “think about how applications of blockchain would work in their particular branch of the online gaming industry”. Blandford specifically cited the technology’s benefits to the anti-money laundering process, whereby “everything is going to be auditable and traceable in a far more transparent way than has previously been the case”.

    According to both Blandford and Ayre, therefore, the focus for the online gambling industry going forward should be on blockchain technology, rather than solely being on the cryptocurrencies which it underpins.

    The post Gambling industry &8211; How Blockchain Can Make It More Transparent appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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  • user 3:35 pm on June 3, 2016 Permalink | Reply
    Tags: , , , , industry, Luxury, Middlemen,   

    Blockchain to Help Eliminate the Middlemen in the Luxury Industry 

    ’s increasing popularity is now being embraced by a wide range of industries. Start-ups are being created by people across the world who have a desire to use blockchain’s revolutionary ledger to improve their specialist , and to further support causes they are passionate about.

    Today this is rarely being witnessed more clearly than in the art world, where blockchain is set to have a seismic impact. start-ups are discovering just how blockchain’s cryptographically secure network can be used to verify the ownership of art and its capability in reducing the number of forgeries and licensing disputes.

     

    Breaking up the closed deals market

    At present, are routinely used to close deals between buyers and sellers of art, with the middleman’s role being to ensure trust and market liquidity. As with many systems currently in use around the world, therefore, these middlemen are effectively the centralized entities.

    With an increasing amount of art being traded online, however, the demand for authenticity certificates has increased, which a middleman can’t always produce, or be relied upon by either party to always be operating honestly and independently. The decentralized basis upon which blockchain operates removes the need for this middleman; instead, a worldwide ledger that securely stores records of certificates and previous verifications will allow artists, art collectors and even insurers to be able to perform instant authenticity verifications.

     

    Art Market

    Indeed, verifying authenticity is a critical function of the art industry. When purchasing art, buyers want to be fully secure in the knowledge that the artwork is genuine, especially as the art world is currently riddled with forgeries. Buyers are not able to fully ascertain, for example, whether multiple pieces of a supposedly unique artwork have been created. According to German artist Stephan Vogler, blockchain could solve this authenticity problem.

    The decentralised ledger can use metadata – a ‘hash’ value – which can allow others to uniquely identify data, and in doing so, provide them with a guarantee that the artwork has been licensed and its integrity has not been compromised. Transactions cannot proceed without consensus among blockchain’s network participants. Under blockchain, therefore, the license can’t tampered with, which ensures that the artist’s works function as tradable assets with inherent value, which Vogler describes as “preserving the features of digital art while making it a scarce good at the same time”.

    A Los Angeles-based start-up called Verisart announced in July 2015 that it is using the blockchain to provide digital security to physical works of art which can be verified instantaneously. Both artists and collectors will be able to use the distributive technology to build a global ledger that will be able to document, verify and certify artworks. By equipping the blockchain with a unique hash value for each artwork, a distinguishable but secure, and purely transparent set of recordings can be created.

    The technology will also provide a layer of protection for sensitive information pertaining to buyer and seller. Indeed, the anonymity of a decentralised ledger is an appealing feature, according to Verisart founder Robert Norton, who believes that “powerful encryption to mask the identities of buyer and seller will be attractive to the art world&;.

    In contrast with physical works of art, digital art can take on a variety of forms, all with the aid of a computer. This, however, renders the artwork with problems surrounding authenticity protection and rightful ownership of the piece. The problem today for digital artists is the pressure of having to give much of their art away for free. The art ends up in the hands of platforms who have the ability to monetise it, while the artist receives nothing. The problem for buyers, meanwhile, is that the digital art can be reproduced at no cost, which makes it difficult for the buyer to ascertain if he/she is in possession of the original artwork.

    A tool now being developed to improve the digital art marketplace, Monegraph, provides information about the origins of an artwork whilst also clarifying the buyer’s rights upon purchasing an artwork. Monegraph intends to simplify the process for digital artists to construct licenses which can officially authorise the commercial use of their work. The licenses are split into 4 broad categories, which range from allowing non-commercial use of their work, to giving all rights to the buyer upon purchase.

    While Monegraph itself will store vital information including identification of the original artist and the current owner, the information will also be recorded on the blockchain. The company has stated that blockchain will provide a verifiable record of specific contracts being executed, as well as any associated licenses, which can’t be hacked. With each transfer work securely logged on the ledger, Monegraph can ensure who owns a digital piece of art at each moment can be easily ascertained.

     

    Diamonds Market

    The diamond industry also looks set to undergo significant changes under blockchain. FinTech company Everledger is using the technology to create a ledger which can store information about the origins of each diamond, thus reducing its potential to be used for nefarious purposes in the future. While certification which stipulates a diamond’s origin does currently exist in paper form, it can’t be constantly updated or accessed remotely, unlike Everledger’s blockchain-inspired ledger. Paper-based records can also be easily subjected to forgery.

    The ledger works by collecting 40 data points on each diamond that describe the physical appearance of each diamond, as well as its serial number and the ‘four Cs’ – cut, clarity, colour and carat weight. Everledger CEO Leanne Kemp uses the of certified diamond laboratories for this process, explaining that the laboratories effectively “digitize” the diamond, which Everledger takes to “put the digitized fingerprint into the blockchain”. Kemp has also explicitly stated that blockchain’s technology is being employed primarily for its immutability. Once an entry is written into Everledger’s ledger, it can’t be changed or manipulated – a vital property that is required to tackle fraud.

    By cross-referencing this data against the ledger to determine a diamond’s origins, therefore, it can stop the diamond from being sold for an exorbitant price. In this way, the ledger protects the interests of potential diamond buyers. Furthermore, data regarding ownership and provenance can be recorded on the ledger which makes the product difficult to resell. The digital fingerprint can be removed by criminals by recutting the diamond, but this is an expensive process to undertake, while the recut diamond itself is substantially lower in value than the original stone.

    Moreover, the existence of an immutable record of a diamond’s history will allow mining companies to ensure that the diamonds they are producing in rough-cut form will not eventually be used as ‘blood diamonds’ – diamonds used by militias to fund insurgencies. Securely tracking and tracing such diamonds along the blockchain will ensure they don’t end up in the wrong hands. Blood diamonds are currently estimated to make up 4% of the global diamond trade – this could be all but stamped out by blockchain.

     

    Advantage of Blockchain in Real-Estate

    Given how antiquated some of its business processes are at present, real estate could experience some of the most fundamental changes to its industry. Much of blockchain’s influence on the process at this stage is concerned with transfer of land titles and government ownership of land records – both of which are expected to drastically improve on blockchain’s distributive ledger. Much like the art and diamond industries, the advantage blockchain has over traditional methods of real estate business is the immutability of the ledger.

    At present, buyers and sellers exchange paper contracts pertaining to title companies, title insurance and many other items of business, which is being increasingly regarded as inefficient. In developing countries, moreover, such paper records are often stored by the government and are exposed to widespread fraudulent activity.

    Among the multitude of ostensible benefits to the real estate industry, finding figures of comparable sales for similar properties could be considerably improved upon under blockchain. Currently, this process is made difficult because owners often keep such price information private. Stuart Appley, CTO of San-Francisco-based commercial real estate company Shorenstein Co., is keen to see this information shifted onto the blockchain ledger. While preserving the anonymity of the key parties involved in the real estate deal, price information could be gathered easily and quickly, as could information about the property itself, such as address, previous owners and tenants.

    Ultimately, the efficiencies associated with blockchain could see the elimination of real estate entities such as title companies and other intermediaries. While the complexity of blockchain’s technology means that this may not happen for a some time, the wheels are undoubtedly in motion, and 2016 could witness some comprehensive changes.

    The post Blockchain to Help Eliminate the Middlemen in the Luxury Industry appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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