Wallet provider blockchain partners with indian bitcoin exchangecoindesk
10 comments
Hash power bitcoin mining
BlockchainWeek The hype around blockchain is just as frustrating for people trying to legitimise the technology as it is for those watching from the sidelines — but behind the fluff, its proponents argue there's real potential. With Bitcoin prices dominating the news and every Tom, Dick and Harry jumping on the blockchain bandwagon, most people are getting sick of the distributed ledger technology.
And speakers at last week's London BlockchainWeek conference certainly did their fair share of pearl-clutching about the tech's breathless publicity. Although such messages were arguably undermined by the wealth of "fund my company's ICO" pitches spread across the event, and the Bitcoin fanbois cheering every mention of rising share prices. Panellists in debates across the two days condemned scam initial coin offerings, where firms offer nothing but a nice idea, and came down hard on a situation that they said had led to too much money being thrown at immature businesses.
The investor just quickly reads a business white paper and sends the money But they also tried to temper the gosh-isn't-all-the-hype-terrible, arguing that the dotcom bubble faced a similar situation and still pushed out a few successful companies.
Some maintained that the "bad players" would be weeded out over time, leaving the market open for the genuine companies. Not everyone agreed, though, expressing concern about the ICO funding model, which sees companies raise money by selling cryptocurrency and digital tokens, ostensibly to develop a platform to support them.
However, investors described being swamped by 30 to 40 white paper pitches a day — so many they couldn't hope to properly consider them — and others warned that increasing numbers of ICOs would saturate the market and spread cash too thinly. But a broader concern was the intangibility of what these firms are offering. However, Frank Schuil, co-CEO of Bitcoin exchange Safello, said this was reflective of a breakthrough technology that would disrupt how investments are made.
The argument runs that firms that would have previously relied on venture capital funding now have another way to access capital. Whereas at the moment those who can't raise money from VCs might choose crowdfunding, now they can also do an ICO or token sale.
That allows them quick access to capital — especially when investors are throwing cash at any firm bolting "blockchain" onto its name — and doesn't require firms to give away a chunk of shares or any control. Firms are also instantly liquid, which proponents say is good for investors who don't have their money locked into one firm for months or years.
But getting that initial investment is one thing; whether firms will be able to continue pulling in investment — or be left as orphans in the second round — is quite another. Edouard Gaussen, associate at VC fund White Star Capital, said that since most blockchain companies failed to raise their second round. But, he added, if venture capitalism didn't add "more value than the money" it would have failed a long time ago.
The counter to the instant ICO cash grab and concerns about people getting scammed is regulation. But others were, unsurprisingly, less enthusiastic about the strict approach taken by some governments. China, which banned ICOs towards the end of last year, and the recent comments from the chairman of the US Securities and Exchange Commission , were certainly not welcomed by attendees — "where can we go to avoid SEC annoyances?
When asked to pick more "open-minded" jurisdictions, speakers in a panel session on regulation suggested Bermuda, Slovenia, the Isle of Man, Singapore and Gibraltar. But other speakers acknowledged the difficulties of regulating a decentralised technology that can cover multiple jurisdictions. Jon Ferris, strategy director of Electron — a blockchain for energy biz — agreed. Industry has a "huge role" in educating the regulators. But that presumes industry has got its head wrapped around blockchain, which isn't really true.
Although some startups may claim to be using blockchain for legitimate purposes, there are many more who haven't really considered whether it's what users really want. And, he said, when it comes to the enterprise going beyond small proof-of-concept projects, there will be a "huge infrastructure and mindset change" needed in order to get blockchain into mainstream or widespread usage.
Jason Kelley, IBM's general manager of blockchain services, said that, if was the year of blockchain "tourism", and of proof of concept, needed to be the year it enters production. But, he cautioned, "this thought of throwing blockchain at everything is absurd You have to understand what works". For most panellists, that means focusing on situations where there are a lot of links in a chain and the partners don't necessarily trust each other, especially when these processes would benefit from greater transparency and more speed.
Crucially, though, companies should think simple, for instance using blockchain for smart contracts or back office processes, or for managing supply chains in shipping or food security. But most agreed that removing intermediaries from every step of business operations is a long way down the line.
But getting a project moving needs the buy-in of stakeholders and a team who will figure out how to build out and support it long-term. Minds Mastering Machines - Call for papers now open. The Register - Independent news and views for the tech community.
Part of Situation Publishing. Join our daily or weekly newsletters, subscribe to a specific section or set News alerts. The Register uses cookies. But I did log in to the portal, Dave. Blame everything on 'computer error' — no one will contradict you If you're a Fedora fanboi, this latest release might break your heart a little Microsoft's latest Windows 10 update downs Chrome, Cortana LLVM contributor hits breakpoint, quits citing inclusivity intolerance.
Master Amazon Web Services: Get on top of reliability with our best practices webinar El Reg's Serverless Computing London call for papers shuts tonight Now that Kubernetes has won, DigitalOcean takes a late dip in K8s Software dev and deployment luminaries head to Westminster.
If customers' data should be protected, why hand it over to Zuckerberg? My PC is on fire! Can you back it up really, really fast? Geek's Guide Pentagon in uproar: Boffins think they've found the evidence Shocking.
Lightning strike knocks out neuro patient's brain implant. Now for some security headaches Silicon can now reconfigure itself with just a jolt of electricity day drone flights? You are like a little baby. How about a full YEAR? Verity Stob Mystery crapper comes a cropper The steaks have never been higher: Swiss Lidl is selling local cannabis Texas residents start naming adopted drains No top-ups, please, I'm a millennial: Lightweight yoof shunning booze like never before.
Blockchain bros' London powwow: Most read Cambridge Analytica dismantled for good? It just changed its name to Emerdata Democrats need just one more senator and then a miracle to reverse US net neutrality death Take-off crash 'n' burn didn't kill the Concorde, it was just too bloody expensive to maintain Microsoft's latest Windows 10 update downs Chrome, Cortana Exclusive to all press: Atari launches world's best ever games console.
More from The Register. Junk food meets junk money: Lloyds Bank bans Bitcoin purchases by credit card customers B-b-b.. Cops seek 4 for aggravated burglary in Midsomer Murders town Fintech workers reportedly targeted. UK reaches peak Bitcoin as bin firm accepts cryptocurrency 'It's not a publicity stunt,' says BusinessWaste. JavaScript fingered for poking cash-spilling holes in Bitcoin wallets If you've got an old money store, check it for hacked gaps.
Bitcoin hijackers found at least one sucker for scam Chrome extension Victim of 'FacexWorm' malware clicked on random link from Facebook Messenger. Elon Musk says he's not Satoshi Nakamoto and is pretty rubbish at Bitcoin He had some once, but lost them down the back of the sofa. Using OutSystems, AXA plans to continuously improve the eServe portal so it can provide additional benefits to brokers and customers. A network baseline allows for the identification of malicious activity in real time.
Sponsored links Get The Register's Headlines in your inbox daily - quick signup! About us Who we are Under the hood Contact us Advertise with us. Sign up to our Newsletters Join our daily or weekly newsletters, subscribe to a specific section or set News alerts Subscribe.