Tag: Blockchain

Cities on the blockchain

On By mehranmuslimiblogIn BlockchainLeave a comment

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Is it possible to run an entire city using blockchain technology?

Dubai seems to think so. The business and airline hub of the Middle East has set itself the challenging task of being the “first blockchain-powered government in the world by 2020.”

It might sound outrageous right now, but the concept of ‘smart cities’ running on the blockchain is actually not as outlandish, nor as difficult to achieve as you may think. The question really is; where do we start? There are so many millions of possible uses for blockchain in a city, but there are undoubtedly some bigger areas where it will have the most dramatic effect.

IoT devices

Already a number of cities are using IoT devices to do a number of jobs, like monitoring traffic and air quality. Thos IoT devices can be connected to the blockchain. That also applies to any city system that collects data — it can all go on the blockchain. In fact, by putting it all on the blockchain, it will provide an upgrade to the system, and make the information easier to manage and access. Basically it will get rid of all kinds of inefficiencies where officials, such as the police, have to go through X number of other organisations to get a vital piece of information.

Better public safety

Data sharing can have a positive impact on public safety. The blockchain can provide a secure system for sharing sensitive data. One example is working on preventative measures, such as analyzing crime statistics and planning police patrols around that information. Yes, there are issues to be ironed out regarding citizen’s rights to privacy and how much information a government can track, but people are at least having a conversation about it.

Efficient transport

Public transport is vital in most major cities and they don’t work without it. The blockchain offers a lot of potential here, especially for the way passengers pay for their transport. If commuters have a blockchain wallet on their smartphone, they could pay for any transport pass, loyalty programme, or purchase tickets without a card.

Citizen incentives

If you put the public transport payment system on the blockchain, you can also offer customers some incentives. For example, if a city wants its residents to use transport rather than drive, there is a way to incentivise that. When the smartphone wallet shows a citizen has been using public transport for a specific period of time, it is possible to offer them a ‘free ride’ or a discount on an electricity bill. In a smart city, an incentive should push people toward more ethical and sustainable living choices.

And that is what a smart city should be — sustainable and more habitable with fewer issues and inefficiencies. If Dubai achieves its goal, it will have created a blueprint for others to follow.

Bermuda is banking on the blockchain

On By mehranmuslimiblogIn Blockchain, FintechLeave a comment

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Something unusual has just happened in Bermuda, the Caribbean island paradise, retreat for the rich and offshore haven — the government has told the island’s banks that they are just not moving fast enough into the cryptocurrency market. It’s a rare occurrence, because most governments are taking a cautious approach to cryptocurrency and none seem to be insisting the conventional banking industry adopts a crypto-friendly approach.

A new class of bank for crypto

In fact, Bermuda is going even further. It is making amendments to its Banking Act so that it can establish a new class of bank that will be able to serve the crypto community, fintech startups and any other type of business that is blockchain based.

The local banks have only themselves to blame for this radical move. They have been denying service to crypto companies, citing fears about risk and regulatory concerns as the reason for shutting the door in potential clients’ faces.

Government supports fintech growth

The government takes a rather different view: Bermudian Premier and Minister of Finance David Burt said that the banks’ stance “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.” It appears that Bermuda wants to emulate the successes of jurisdictions like Gibraltar and Malta in becoming safe havens for blockchain explorers, and they all share the characteristic of being relatively small in terms of population, but big on financial services that serve the whole world. Of course, this is perfectly understandable: if you don’t have the environment to be a manufacturing or agricultural economy, financial services are the best way of ensuring that your economy thrives, especially if you keep introducing innovations that attract companies or individuals who can’t find a banking home elsewhere.

David Burt also said in parliament: “The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”

Bermuda welcomes Binance and Shyft

He clearly sees that Bermuda’s future must not be held hostage by the banks’ fear of the blockchain. This year Bermuda has already signed deals with Shyft network, which will reportedly provide $10 million on blockchain technology education and economic development on the island, and Binance is on Bermuda to establish funding for educational programmes related to fintech and blockchain. It has said it wants to build a “global compliance base” on the island.

It’s a smart move by the Bermuda government and is yet another step forward in opening up the banking sector worldwide to the reality that businesses operating in the crypto sector need forward-thinking banking — and that they’re going to grow in strength rather than disappear. Ignore them at your peril.

Is Trilliant offering a new form of ICO?

On By mehranmuslimiblogIn Blockchain, ICOLeave a comment

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In a move to serve the growing consumer demand for cryptocurrency tokens, tech business Trilliant is launching 500 ‘next generation’ ATMs in Europe, which should be fully operational by the beginning of 2019. Trilliant is a Swiss-based company that started out as Crypto Capital AG, but now focuses on ATM operations, having moved away from being an investment platform.

Currently ATMs don’t have the facility to purchase cryptocurrencies using fiat currencies, but the new ATMs rectify that situation. Surely, this represents a leap forward for cryptocurrency, especially with regard to mainstream adoption.

What Trilliant is offering is a way to promote stability in the marketplace. Its goal is to have at least 500 ATMs operational by 2019 — a goal that doesn’t seem overly ambitious considering that the next generation ATMs offer more value to cryptocurrency investors than the 2,700 cryptocurrency ATMs currently in-place across the globe.

Founder and CEO, Sebastian Korbach said: “In the long run, we want our machines visible on every corner, creating greater awareness for cryptocurrencies in general.”

It is also offering investors the opportunity to purchase Fractional Ownership Units. These units cost upwards of $100 and will be sold on the Trilliant website. Essentially it means that investors will be able to purchase partial ownership of Trilliant’s operating cryptocurrency ATMs.

Is this a new type of ICO?

This is different to an ICO, the fundraising platform that is more typical for blockchain and crypto projects. A Fractional Ownership Unit is similar to a profit sharing agreement, which means investors stand to benefit from Trilliant’s profits. However, it is still holding a token sale and has a whitepaper — so isn’t it an ICO in another disguise?

This raises some interesting questions about the ICO landscape in the future. Is the basic model that emerged in 2017 simply that — a basic model? Will we see the ICO develop different formats, such as this Fractional Ownership concept. Fractional Ownership is by no means a new thing and it isn’t just connected to the cryptocurrency ecosystem — you can have fractional ownership of vineyards, racehorses and supercars. What other formats are likely to emerge and how will this test the strength of the regulatory frameworks for crypto ecosystems and token sales?

We have only seen the tip of the iceberg with ICOs — there is undoubtedly much more to come in terms of this fundraising tool.

The Enigma Code for Smart Contracts

On By mehranmuslimiblogIn Blockchain, Smart ContractsLeave a comment

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During the Second World War, the Enigma Code proved one of the toughest to break. Eventually, Alan Turing, one of a group of elite code breakers working at Bletchley Park in the UK devised a technique to unravel the messages being sent out by the Enigma machine and he became known as the father of modern computing. Fast -forward to 2018 and we are seeing the emergence of another Enigma, a blockchain startup that enhances the privacy of smart contracts.

Privacy and secret contracts

Enigma is working with Intel on perfecting secret contracts. These are a type of smart contract for public blockchains that use cryptographic tricks to keep transaction data hidden from view. The project started at MIT with the aim of creating a more private platform for decentralised applications. To do this it is using Intel’s Software Guard Extensions (SGX).

A spokesperson for Enigma said: “Privacy is currently the biggest barrier to smart contract adoption. Blockchains are good at correctness, but bad at privacy by design. Smart contracts and decentralized applications will need to be able to use private and sensitive data to see global adoption.”

Trusted execution environments

It is expected that a ‘proof of concept’ product will be launched late in 2018 and that it will demonstrate the way the two technologies can work together. The team is also exploring trusted execution environments (TEEs), which are an integral part of Intel’s SGX technology that securitises data and code.

The urgent need for secret contracts

The announcement of the Enigma-Intel comes at a good time. The Bithumb hack this week and memories of past attacks, such as Mt Gox and DAO, are still quite fresh. The DAO hack in 2016 is particularly relevant, because it happened due to flaws in a smart contract.

Enigma’s CEO Guy Zyskind, has been talking up the need for secret contracts for some time and has pointed out the issues “with coin-mixing and zero-knowledge proofs, the latter of which he said are particularly vulnerable in multi-party cases where several “untrusted and pseudonymous” parties are executing computations,” as he wrote in Medium. Zyskind also said, “secret contracts provide the ‘missing piece’ by executing computations using encrypted data that stays hidden from network nodes.”

Churchill said that the work Alan Turing did shortened WWII by two years; perhaps the ‘new’ Enigma will fast-forward the crypto industry into a more secure marketplace before 2020.