Category: Fintech

Estonia Embraces Blockchain

On By mehranmuslimiblogIn Blockchain, Fintech, ICO, Initial Coin OfferingsLeave a comment

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Estonia, one of the smaller countries in the European Union, is becoming one of its most fascinating for the Fintech entrepreneur, partly because there are so many innovative companies that have come out of Estonia – think Skype and Transferwise – and now because the government is digitising its services using blockchain technology.

One of its most sensational advances has been establishing the ‘e-residency programme’ that allows any person, anywhere in the world to simply make an online application and become a virtual Estonian citizen. This can prove extremely helpful for those who want to establish a business outside their usual country of residence, because once you’re an e-resident of Estonia, you can have a business address and bank account there. And, as a virtual citizen, that person can access the same online platforms that Estonia’s physical economy is based on, and the same online public services that native Estonians use. It is also working on bringing blockchain technology to a number of public services projects, such as its healthcare service, and there are plans for an Estonian digital currency.

Other countries competing with Estonia

It seems that if any country can make blockchain work on a bigger scale and showcase its potential, Estonia is the one most likely to do it first.  Fellow EU member country Slovenia is following in Estonia’s steps and hoping to outperform it. The UK is another country that is piloting blockchain in the public sector; in its case it is trialling a scheme to pay health benefits claimants. And Russia’s national bank has signed a deal to develop a national system called Ethereum Russia.

China will re-introduce ICOs

And where Russia goes, China is never far behind. It is looking at the prospects of developing a national crytpocurrency. Yes, China did ban ICOs, but that was only a temporary measure and not the absolute end of ICOs in China. Now it is looking at introducing a regulatory framework for ICOs that will prevent illegal activity in this massively growing method of fundraising for Fintech startups. It will be something like the licensing system called BitLicense, used in New York State, most experts suggest.

China should move quickly, because the countries that are showing support for ICOs and blockchain will take business away from the Chinese blockchain community and send it to Japan, Singapore and Hong Kong. Meanwhile in Europe, all eyes are still on Estonia, which has grasped the power of blockchain technology and is fast becoming the ‘Blockchain Valley’ of Europe.

 

 

A Crypto Investment Strategy

On By mehranmuslimiblogIn Blockchain, Fintech, Initial Coin OfferingsLeave a comment

Some years back, when Ethereum first appeared, I started investing heavily in this new blockchain platform. I’d started off with Bitcoin some time before and that had proved its worth. But it is fair to say that the crypto world is both exciting and unpredictable, which is part of its attraction for a number of investors. What you have to remember is that there are opportunities for huge games, but there is always the possibility of loss. Does this mean that cryptocurrencies are too volatile to invest in? No, but there is a sensible way to go about it and minimise your risk.

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Be patient

First off, don’t aim to get rich overnight. Take a more steady, long-term approach to investing in crypto. Investment is a tricky game and the patient person usually wins. Remember the story of the tortoise and the hare? Well, you want to be the tortoise.

Diversify

You know what they say – don’t put all your eggs in one basket. That’s very true for investing in crypto. Don’t put all your cash on one coin. Bitcoin may be the best known of these currencies, but if anyone tells you it is the only one worth investing in, they are misinforming you. There are others that will likely out perform Bitcoin eventually. It’s better to have a spread across the Top 10 currencies, which currently are: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Dash, NEM, NEO, BitConnect and Monero.

Buy in a range of blockchain categories

Blockchain technology has evolved to a point where currency is just one of the many functions a cryptocurrency can have. Ethereum offers ‘smart contracts’ and there are decentralised storage networks like Sia Coin, and exchange platforms like Waves. My suggestion is that you spread your investment throughout multiple options inside each category. This will allow you to reduce the risk of investing in one single currency.

Don’t ignore the new coins

Small market cap cryptocurrencies have more growth potential than the ones at the top. Of course, other factors will determine if the price rises, but the idea is that if you invest in a currency before it gets big, you will hopefully get to see your investment grow several times over. That doesn’t mean you should rush out and buy any new currency; do your research, read the white paper and the road map. Do everything you can to satisfy yourself that this is a product worth investing in.

 

 

Everybody loves blockchain

On By mehranmuslimiblogIn Blockchain, FintechLeave a comment

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For some time, pretty much all discussions about blockchain have focused on Bitcoin and Fintech. These debates have centred around the future of Bitcoin as a currency and whether or not blockchain would really become the main platform for Fintech. The discussion has finally moved on, because there has been an explosive growth in blockchain over the last year, and its increased used across a swathe of industries certainly indicates that any questions about whether it is her to stay or not have been answered in he affirmative.

For a start there is now a whole host of blockchain crypto products. Bitcoin has plenty of company now on the crytpocurrency exchanges and major banks are adopting blockchain technology, because it is seen as cost effective and secure when compared to traditional banking methods. Plus, peer-to-peer payment systems continue to grow, enabling individuals to send money across borders instantly at relatively low fees.

But banking isn’t the sector where blockchain has made a somewhat surprising impact. Real estate businesses are using blockchain platforms for record keeping and for streamlining the buying and selling process as well as making it more secure.

Charities are also using blockchain to ensure that funds go where they are supposed to; this issue had dissuaded some donors from giving, but with blockchain platforms like BitGive, which is a transparent and traceable donation platform, donors can actually monitor their donations to ensure that the money gets to where they want it to go.

In the music business, individual artists have suffered losses of income through free streaming and downloading of music. Streamspace is a blockchain platform where artists can distribute their products directly to their fans in a secure manner, thereby ensuring that they get adequately compensated for their work.

Education is another area that is expanding its use of blockchain. For example, education certificates are verifiable documents that should never be altered or manipulated, but cases of forgery are all too common. To prevent this, certain schools and colleges, have started publishing students’ certificates on the blockchain. Because of this, the authenticity of such document is not in doubt as the data represented becomes secure and immutable.

The list can go on, as almost every industry is experiencing the inevitable implementation of blockchain solutions. That’s one reason for the incredible rise in the number of ICOs, as the blockchain industry needs to raise funds to develop products. And the blockchain makes it easy as the entrepreneurs can raise funds from almost anyone in the world. You could say that the blockchain is powering the development of its own ecosystem – undoubtedly we’re going to see even more blockchain-backed products in the near future.

 

 

5 Things To Consider About Fintech

On By mehranmuslimiblogIn Digital Innovation, Fintech, ICO, Initial Coin Offerings1 Comment

Technology is more integrated in business practices now, but Fintech is a concept that is just taking hold and revolutionising financial processes. It often seems to me that there is some confusion about what it is and what it really does and for business owners there are questions about whether Fintech platforms are right for their business.

Some of the information published about Fintech, so in an attempt to clarify what it is and what it can do, let’s look at some things to consider before you adopt it.

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What is fintech?

It’s just another type of technology. There is nothing mysterious about it. Some people seem to think that it is just about Bitcoin, but that is not quite true, it is also technology that enables mobile payments for example. So, it has a lot of applications.

Will it work with your existing technology?

When you are adopting new technology, such as a payments method, you need to be aware they won’t magically fix existing problems with your older systems. Before committing to a particular software platform or tool, make sure to investigate how the new tools will work with your existing IT infrastructure.

Increase your IT security

When you decide to use a Fintech tool, be aware that you are making more of your business information available digitally. This makes it easier to access client data and respond in real time, which will improve your business. On the other hand, because more information will be available online, you should boost you IT security to deal with this.

Make sure the Fintech is supported

When you choose a Fintech platform, make sure it comes from a stable company that isn’t going to disappear and leave you without support. Otherwise you might find that you have spent time and money on a product, only to find it has become obsolete quickly, or there is nobody to provide answers when there are problems.

Don’t get hung up on Bitcoin

Because so many people are convinced that Fintech is only about Bitcoin they haven’t explored the full potential of this new technology. The focus on Bitcoin, which is just one way of using a decentralised blockchain, has steered some businesses away from Fintech because it makes them nervous.

Keep an open mind about this new field, because it is going to be one of the most talked about topics in the coming years, and it is predicted that just about every business will eventually be using Fintech in some form.